Brian Cowen (Laois-Offaly, Fianna Fail)

Deputy Kenny suggests that there are swathes of people who could be immune from contributing. I simply make the point that the situation we face in terms of the public finances requires that every area of public expenditure on all fronts has to be considered. All areas of the public sector have to be considered. One acknowledges the role the public service plays in our society. Public service employers are the same as private sector employers. Based on the resources that are coming into the coffers we must examine how we can make an adjustment over a period of years, not overnight, and at the same time do so in a way that closes the gap between revenue and expenditure, which at the moment is running in the order of €500 million a week. That is the situation. It is important that one looks at every area of public expenditure.

On the pay and pensions side of the equation we will look at all ways in which that can be achieved. We will listen to what others have to say about that. The suggestion that there are large categories which can be immune from consideration would not allow one to draw up the sort of budget that would meet the imperative in the situation that we face.

On job creation and competitiveness, a fundamental part of that must be the stabilisation of the public finance position of the country. Without that, one puts at risk the return of confidence to the economy. There is a need to be seen to do it and to demonstrate that one is prepared to do it in the long-term interests of the economy. That is vital in the present circumstances. The Government is working to the objective. On our part we continue our effort to improve the prospects of not only maintaining jobs in the economy but to create them again in the future. Jobs are being created in this economy despite the severity of the recession, but more jobs have been lost than gained in the past 12 months. Thankfully, we have seen a levelling off in the rate of job losses. That is to be welcomed in itself.

Again, it is an indication that we have to reinforce our efforts to put a floor on our public finance position which would enable us to grow and invest again. It is clear from all of the analysis that has been done that next year will be a difficult year but one which should see growth return to the economy in the latter part of the year based on current assumptions and best analysis of world trends as things stand.

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