Brian Cowen (Laois-Offaly, Fianna Fail)

The whole question of budgetary policy was dealt with not only in regard to Cabinet committees but Cabinet meetings also. The regaining of competitiveness, which deals with what is happening in the private sector in regard to people having to take less in wages and take-home pay and the effort to reduce costs in a very difficult market environment, is an important contribution towards trying to maintain the maximum number of jobs in what is one of the most difficult years this economy has ever experienced. The point, which I believe is accepted, is that without seeking to bring order to the public finances, the prospect of economic recovery is postponed. While it is a difficult year and next year will also be difficult, it is not contended by any serious commentator or observer of the economy or the economic events in Ireland that this is an issue that can be sidestepped.

The issue for us, therefore, has been our contribution towards reducing the rate of current expenditure, targeting capital expenditure as a contribution towards economic activity, seeking to assist in every way we can, not just by reason of an equalisation fund but also with regard to the question of activation measures to try to help the people who unfortunately have been losing their jobs, similar to what has been happening in other economies in the developing world.

We need to see in what way we can assist at a time when the public finances are very scarce. We are trying to maintain service levels in key areas of health and education which will require further reforms. We will require further support in this House for reforms on the basis that everyone would acknowledge that the level of resources that will become available to the Exchequer will be such that without reforms we put at risk the service levels we are tying to protect.

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