Brian Cowen (Laois-Offaly, Fianna Fail)

I am interested in providing a solution to this problem which recognises that we must assist the people who are most vulnerable to the greatest extent possible and consistent with a sustainable path forward and a sustainable budgetary position. If we do not have such a position, we will place at risk our ability to maintain the level of supports we would otherwise be unable to maintain if we do not make the necessary adjustments now. That is the truth of the matter and people are entitled to know it.

They are also entitled to know that we will do everything we can in the context of providing a response to the problem that is as fair as possible. However, I do not accept the idea that 35% of total current expenditure should remain immune from any consideration whatsoever, particularly in light of the scale of the problem we face. There is a deficit of 12% and, as previously indicated, an adjustment of €4 billion will be required simply to stabilise this in 2010. That is the nature of what we are facing.

In the past we were able to provide - and rightly so - increases that were three, four or sometimes five times the rate of inflation. However, interest rates are now lower and, for the first time since 1931, prices are falling.

See this speech in context