Séamus Kirk (Louth, Fianna Fail)

I am glad to have the opportunity to speak today on behalf of the Government.

The Opposition speaks about the economic crisis this country is undergoing as if we were facing it alone. The truth is that the world is undergoing the worst economic crisis since the 1930s. Despite what Members of the Opposition believe, this economic crisis is not unique to Ireland. The US, Japan, the EU and many other countries and regions are in unprecedented recessions. Britain's budget deficit is its worst since the Second World War. Just last month, the UK Chancellor, Alistair Darling, said that it will take eight years to reduce its deficit by 6.5% of GDP. Likewise, the White House has just revised its budget deficit predictions by $89 billion, meaning that this year its deficit is expected to reach $1.84 trillion - a truly unimaginable figure. In this country, we face a deficit of almost €21 billion, which is unsustainable. We introduced a very tough budget that set out to bridge this gap. It balances tax increases, spending cuts and borrowing. Neither Fine Gael nor the Labour Party have presented viable solutions to the crisis. Fine Gael has proposed €2.4 billion in cuts, which would have a drastic effect on services, and the Labour Party seems to be proposing that we just go on borrowing.

No one predicated this economic tsunami. In 2007, the joint spending plans of Fine Gael and the Labour Party predicted average annual growth rates of 4.2% between 2008 and 2012. They criticised us at the time for being too conservative and called for increased expenditure on health and education. The reality is that in more prosperous times huge strides were made in this country. We invested in our people, our services and our infrastructure. We invested in more than 3,500 extra gardaí, 11,000 more nurses and doctors, and 7,000 extra teachers in our schools. We dramatically increased the state pension and social welfare increases far exceeded inflation. We have invested in public transport and an excellent motorway system throughout the country.

It is clear the economic situation has changed dramatically. The Government has faced unparalleled challenges. In more than 25 years in the Dáil, I cannot remember a time when events developed so rapidly. When circumstances change rapidly, one must respond quickly. That is what the Government has done. Thousands of people are living daily with the hardship of this economic recession, trying to support their families and get by. I realise they are disappointed and angry. However, accusations that we have no plan are simply incorrect. We have a plan and I believe we are making the right decisions to put back this country on the road to recovery.

Our plan consists of four parts. First, we must stabilise the public finances - this is why we introduced the pension levy and the supplementary budget; second, we need to sort out the banking system - this is why we are creating NAMA; third, we need to get Irish banks lending again; and, finally, we are working to protect and create jobs as well as supporting those who are out of work. To date, the number of FÁS places has doubled to 128,000 and we have introduced new courses on green energy technology. We are creating 7,000 third level places including an extra 1,500 PLC places. We are also providing work experience training programmes that graduates can access while holding onto their benefits. We are supporting small and medium sized enterprises through the creation of the enterprise stabilisation fund.

Our plan for economic recovery has been appreciated by expert commentators at home and abroad. In May, Jean Claude Juncker, the Prime Minister and finance Minister of Luxembourg said, "I do think that the Irish Government, with great courage and a deep sense of responsibility, are on the way to taking the right step in a very difficult situation". John Fitzgerald of ESRI said the Government had got it right in the supplementary budget and that the country was on the right track. The ESRI predicted that the economy could grow quite rapidly during the 2011-15 period if international competitiveness is restored. Peter Sutherland commented that we have great strengths and that the position is not quite as bad as it is being painted.

I am conscious of time constraints and I thank the Leas-Cheann Comhairle for the opportunity to contribute.

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