Brian Cowen (Laois-Offaly, Fianna Fail)

As regards Ard-Fheis speeches, I heard the Deputy's speech and I know all about the suggestions he has been making regarding those areas. He got his kick and his bounce out of it, and the best of luck to him.

Regarding the realities we must deal with, which is a different question, and the issue that arises with the budgetary situation, the Deputy suggests that we should prolong the time. That is not possible. The European Commission has sat down with the Government and we had to indicate the position so we could continue to fund deficits as we correct the public finances. These deficits we are funding are quite substantial. Even over the period we are talking about they will be substantial. We also, of course, want to get growth into the economy as a way of also helping to finance these issues. All the policies we have taken and the adjustments we have made are indicating that despite the difficulties with volatility in financial markets, and we hope they will not become more volatile, Ireland is regarded as having taken the right decisions. They clearly impose difficulties on our people but that will be case regardless of who governs this country and wishes to take on the responsibility of dealing with the issues as they are, rather than as they would like them to be. This Government is committed to doing that.

The relationship with the European Union and our membership of a common currency require us to play by the rules. It is not correct to state that during the good times a vast number of people were in excessive deficit. There were some countries, three that I recall from my term of office. Germany was one of them but it got itself back within the rules within a reasonable period of time. Of course, the costs of unification of that country were huge. However, it put its public finances in order and is a major paymaster of the European project. The situation with Ireland is that we have a challenge on our hands. We have an agreed plan with the European Union as to how we will move from the current position to where we need to be. Yes, it involves major challenges that will not be easily complied with but that must be done. The reason they must be complied with and the reason we have the support of the financial markets at present is that Ireland is, in fact, showing its determination with those issues it can control, which include its expenditure and taxation policies, to move along the line envisaged in those plans.

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