John Curran (Dublin Mid West, Fianna Fail)

I thank all sides of the House for their active participation in a debate on issues about which we all care greatly — the future prosperity and well-being of this country and how Government policy and investment can help secure that. That said, I must express some perplexity at some of the comments from Opposition benches about the wealth of the boom having been squandered and the Government not caring about public infrastructure like schools, public transport and so forth.

Last night, the Minister of State at the Department of Finance gave us an extensive resumé of what has been achieved with the proceeds of the years of prosperity. We can see a public infrastructure transformed, with greatly improved roads, enhanced public transport networks, massive investment in social housing and other social infrastructure, very significant investment in environmental services and enhancement of our educational infrastructure as well as a comprehensive programme of investment in enterprise support and science and innovation. Much of our public infrastructure now bears comparison with the best in Europe. The Government is not saying that we do not have ground to make up. That is why in our recent supplementary budget we provided over €31 billion in Exchequer capital expenditure for the next five years, an annual average of over 4%, one of the biggest in the EU15.

The Government does not deny that we face very difficult choices in the next several years, choices that any Government of this country would have to confront. Expenditure plans, however ambitious and laudable, are never enough in themselves and must be firmly placed in a sustainable, multi-annual economic and budgetary framework. It was this consideration that I most missed in the contributions from those on the opposite benches. Not only have they attempted to deny the real progress and achievements of the past decade or so, they also fail to recognise the active and decisive steps the Government has taken to address the grave economic and financial challenges Ireland faces.

This Government has responded quickly to the rapidly changing economic conditions over the past year and we have taken a series of measures to reduce public expenditure and raise revenue this year, with further adjustments in the coming years. A progressive series of measures, starting last July, continued in the October budget, augmented primarily by the pension-related levy in February and further strengthened in the recent supplementary budget, have helped stabilise the public finances. This is absolutely essential if we are to turn the economy around. Sustainable public finances will help restore international confidence abroad in Ireland and will enhance international and domestic investment in the Irish economy, which in turn will lead to better times for all our citizens in the years ahead.

The Government has also taken significant steps to restore the banking and financial system to full health. The Minister for Finance has announced the Government's plan to establish a national asset management agency to strengthen the banks' balance sheets, reduce uncertainty over bad debts, ensure the flow of credit on a commercial basis to the real economy, to protect and grow employment, while also maximising and protecting the interest of taxpayers. This is essential if we are to get the economy moving again in the right direction.

This Government has always been committed to, and will maintain, a business-friendly tax framework which will encourage enterprise development and job-creation. In budget 2009 and the subsequent Finance Act, the Minister for Finance introduced a considerable enhancement to our research and development tax credit regime, which will help to position Ireland at the forefront of innovation-based enterprise and employment.

Many Deputies on the benches opposite complained about lack of investment in infrastructure. The National Development Plan 2007-13 sets out a comprehensive framework for delivering public infrastructure. Much has already been achieved and, despite severe budgetary constraints, significant investment will continue until the end of the plan in 2013.

Over the next five years, this Government will spend some €31.4 billion on public infrastructure. This amounts to over 4% on average of estimated GNP. In 2009 some 5% of GNP will come from the Exchequer to be spent on public infrastructure. This investment programme will make a substantial contribution to turning the economy around and help sustain activity and employment in the construction sector.

Government investment in infrastructure is most clearly evident in transport. The Government is also committed, however, to helping enterprise through the current difficulties. The recently introduced stabilisation fund will provide targeted support to indigenous companies to assist them in the present exceptionally difficult business environment. The stabilisation fund will have a total budget of €100 million over two years. Enterprise Ireland and the IDA will also continue their regular supports for indigenous companies and foreign direct investment, respectively, in 2009 with total capital funding available to support industry in 2009 of over €170 million.

The decision by Government to allocate significant levels of funding to science, technology and innovation sends out a signal to the research and development community that Ireland is committed to the research and development-led smart economy path. The work of IDA Ireland, Enterprise Ireland and Science Foundation Ireland, puts Ireland at the forefront of research and development regimes globally and will complement the favourable research and development tax regime.

The Government is well aware of the challenges facing the country and has shown its resolve to turn the economy around by taking hard and unpopular decisions to deal with the problem. The road ahead will be difficult. We will put the enduring long-term national interest above short-term political popularity when taking the necessary difficult decisions. We are charting a way out of the current difficulties. It will not be easy but a start has been made. I commend the Government's detailed and specific record of achievement in this area and solid proposals for continued action as set out in its motion before the House.

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