Brian Cowen (Laois-Offaly, Fianna Fail)

The role of the committee is of course to assist the economy back to recovery in whatever way we can. With respect to Deputy Ó Caoláin, that cannot be done in a void. It must be done on the basis of a stable financial system both domestically and internationally. The purpose is not to bail out banks but to ensure we have a system which is geared to bring about the recovery that everyone seeks. Without a functioning and viable financial system, our prospects of recovery are greatly postponed. The reason priority must be given to this matter is because of the global nature of the crisis in the financial markets.

Our second consideration is improving competitiveness in the Irish economy. Now that we are in a recession and experiencing depleted demand for the goods and services we provide to international markets, we need to be competitive and maintain market share in order to sell in similar volumes, if with tighter margins, the goods and services we produce and provide. Unless everything we do is geared towards that objective, the availability, sustainability and creation of jobs is put at risk because that is the only way we can increase enterprise and opportunity.

I reject the assertion that the Government lacks a plan. We have provided a mid-term fiscal consolidation plan which has been approved by the EU, as we were required to do. Through our smart economy framework, we have also provided a mid-term economic recovery programme emphasising areas of the economy which can create wealth and jobs. At the same time, we are required to correct our public finances because otherwise we put at risk the sustainability of public services and, more important, divert the resources currently being provided by the people towards increasing debt and interest repayments. I remind Deputies, however, that while we have a large deficit, we have a relatively low debt burden compared to some other countries because of our prudent management of finances in terms of halving our debt during the good times. That headroom, which is now available to us in the coming years, must be prudently managed and prioritised towards areas of activity that will generate economic growth and provide us with the prospect of recovery. That is the position.

The decision made on Friday last by the Irish people is a positive step by all of our citizens to help effect recovery by showing confidence in the strategic direction in which this country must go. While there would be democratic debate about all of these matters, the vast majority of the Irish people indicated that they wanted the European Union to be part of the framework for recovery in this country.

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