Brian Cowen (Laois-Offaly, Fianna Fail)

We used money to more than halve the national debt as a percentage of GDP, from 64% in 1997 to 25% in 2007. If the assets of the National Pension Reserve Fund are taken into account, the net debt position at the time I ceased being Minister for Finance, was approximately 12% of GDP. This undoubtedly helped slow the growth rate of the Irish economy from what would have applied had we used the funds to either increase public expenditure or reduce taxes as argued by others at the time. This is now allowing us to borrow to help us through a very difficult period. The policies now being espoused by Fine Gael and the Labour Party are more about chasing popularity than confronting reality. At its conference in March, Fine Gael indicated that it would be willing to make a €2 billion adjustment in the 2011 budget. That approach puts the party in conflict with the adjustment of €3 billion for 2011, agreed with the European Commission. The Labour Party has called for an increased fiscal stimulus in the economy that would simply enlarge our deficit further and call into question our ability to continue to access continued funding. Were the Opposition to implement such proposals they would decimate the hard won credibility the country has gained internationally. Adopting such a budgetary stance would undermine the country's ability to pursue our economic strategy internationally and our economic recovery.

With regard to the need to regain competitiveness and the creation of jobs, people can also have confidence that Government is working. The good news is that prices are falling and competitiveness is being restored in Ireland. Between 2009 and 2011, it is expected that our unit labour cost will have fallen by 12% and consumer prices are already down by 2.5% this year.

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