Brian Cowen (Laois-Offaly, Fianna Fail)

I did not mention any figures. I was simply trying to convey to the correspondents who attended the briefing the scale of the issues we were dealing with and conveying those to the public in a way that was not technical. It was about saying we have seen a gap arise in the public finance position which means our spend and taxation levels vary between 2009, 2003 and 2004 levels. That is a four or five year period and I was making the point that the correction would occur over four or five years. I was seeking to convey that while the scale and magnitude of the problem is of that order, we have the next four to five years to correct it. It was not something that would be resolved in year one, two or three but over a longer period.

I also made the point — I will make it again so it will not be misinterpreted — that the structural deficit I spoke of is 8%, which is what is regarded by most as the structural deficit in our public finance position at the moment. That seems to be a point of common agreement among us. It is therefore necessary to address the structural deficit in the first instance. There is a cyclical part of the deficit and as I hope growth will return during those five years, we will see a pick-up in our revenue position because the cycle will move into positive territory vis À vis where it is currently.

I was simply seeking to convey the thinking behind the Government's position and the scale of the problem, thinking about how one could convey to people in ordinary language the size of the issue and over what period of time we can expect to resolve it. I also indicated why we should have some confidence about resolving the matter over that period, as we have those five years to make up the five-year deficit that has emerged in recent times. The budget details will be announced by the Minister next Tuesday on the basis of finalised decisions.

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