Brian Cowen (Laois-Offaly, Fianna Fail)

This Government is committed not simply to a book-keeping exercise, as the Deputy suggests, but to making sure the economy returns to growth as quickly as possible. Part of this is a correction in the public finances.

With regard to taxation policy, this Government has always been committed to ensuring that we maximise the prospects for employment and allowing people to retain the greatest possible level of disposable income consistent with the provision of public services in a cost-effective and efficient way. We have set out five action areas for this. We must meet the short-term challenge of securing the enterprise economy and restoring competitiveness, which is the context in which the Fine Gael proposal is being made; we must build the ideas economy, because education and innovation have been shown to be key drivers of the economy. It is not just a question of the products and services we produce but how we produce them; we must enhance the environment and secure energy supplies. Productivity is enhanced by lowering carbon inputs in production; we must invest in critical infrastructure to enhance productivity; and we must make public service governance and regulation more efficient and effective.

Trying to increase productivity across all sectors of the economy is the best means by which we can restore growth, incomes and standards of living in due course. It would be wrong to suggest, given the scale of the problems we face, that it is possible to do so without making the immediate short-term correction we are talking about. I was glad to see in yesterday's debate that whatever about the details, the scale of the required correction - €4 billion - is agreed in the House. However, we must also concentrate on the other €52 billion or €54 billion in capital and current spending to show what we are doing for the economy and for the provision of public services.

See this speech in context