Peter Power (Limerick East, Fianna Fail)

We are simply reflecting the economic reality in which the country currently finds itself. Since 2005, we have been striving to reach the UN target of 0.7% by 2012, which is three years earlier than any other country in the EU. We are therefore three years ahead of the EU's commitment in this regard. However, this commitment was made in very different circumstances. The 2012 commitment was seen as being extremely ambitious. Given the circumstances of the last 18 months, we are now in effect borrowing the equivalent of our aid budget every ten days. We cannot walk away from that fact. We have spent over €4 billion in the past six years.

In the developing world, we must practice what we preach, which is sustainable development - that is, development that keeps itself going over many years. If we were to borrow the equivalent of our aid budget every ten days from now on, we would have no budget by 2012 because our economy would not have sustainable public finances. In making our allocation this year, therefore, we are stabilising it as a percentage of our GDP at 0.52%. I still maintain that is a real and substantial commitment, and is recognised as such by many people throughout the NGO community. It reflects the economic, financial and arithmetic reality in which we find ourselves.

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