Brian Lenihan Jnr (Dublin West, Fianna Fail)

The international economy has exited recession. Recent indicators suggest that economic activity in this country is turning the corner, and my Department expects a return to positive growth within the next six to nine months.

GDP has fallen by approximately 7.5% over the past year, which is the largest fall since records began. Average GDP for 2010 as a whole is projected to be down by approximately 1.25% from the average level in 2009. Consumer prices have tumbled this year, and a small decline is forecast for next year. By helping to restore competitiveness, falling prices will allow us to take advantage of the improving global economy. Falling economic prices will also cushion the effects of reduced pay and social welfare payments

The effort demanded of every citizen in this budget is substantial, but it is the last big push of this crisis. Further corrections will be needed in the coming years, but none will be as big as that being introduced today. Having already provided for an adjustment of €1 billion in capital spending, we have pencilled in an adjustment in day-to-day spending of approximately €2 billion for 2011, as strengthening economic conditions begin to assist in closing the deficit.

Our overriding objective has been to strive for fairness. Unpalatable choices will always be met with opposition. The job of Government is to distinguish between the common good and narrower sectional interests. The response to the recent flooding throughout our country has shown what we can achieve when we all pull together in times of adversity.

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