Brian Cowen (Laois-Offaly, Fianna Fail)

For the year as a whole, an Exchequer borrowing requirement in the region of €26 billion is forecast. This implies a general Government deficit in the region of 12% of GDP by the end of 2009. Continuing to borrow at a high level to bridge the gap that has emerged between revenue and expenditure is not a sustainable solution in the medium to long term. Our priority is to address this gap and stabilise the deficit in 2010. Central to the process of stabilising the deficit at this year's level are the adjustments to be introduced in budget 2010 on 9 December. The corrective action in budget 2010 will have to come primarily from the expenditure side as we have already increased taxes significantly. Further increases in the tax burden could have a negative impact on enterprise and growth prospects. The measures that must be introduced will undoubtedly be difficult but the imperative for action is clear and we must make the necessary adjustments now.

On the question of jobs, Deputy Kenny should note it is not a question of there being 500,000 unemployed. While 12.5% of people are on the live register, 70,000 of the 412,000 or 415,000 people on the live register are in part-time work and therefore must avail of social welfare for some part of the week. It is important to point out there are still almost 1.8 million people working.

The purpose of Government policy is to make the economy more competitive. We have seen a major contraction in the economy this year and we hope to see growth return during 2010, even if the first full year of growth is in 2011. It is clear from the European Commission, forecasters and commentators that there is a need to stabilise the deficit. That is the nature of the correction we are seeking to undertake in the forthcoming budget. I welcome the fact that Members on all sides of the House have indicated their support for that approach.

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