Brian Lenihan Jnr (Dublin West, Fianna Fail)

I am glad the Deputy asked that question. Brussels has not required anything in terms of this process. It is a decision of the Government to introduce a four-year plan. I certainly discussed the matter with the Commissioner for Economic and Monetary Affairs, Mr. Rehn, in general terms, but no specific requirements were imposed on Ireland by Brussels and there is no suggestion of that. It was obvious to the Department and to me as Minister that the data in September were mixed and that there were risks on the downside which required to be addressed. Indeed the Governor of the Central Bank indicated some time ago that reprogramming was necessary and I discussed the matter with him as well.

I cannot speak for the Governor, but there are clearly imbalances in the public finances which require to be addressed and which are outside of the difficulties faced by our banking sector. There is a significant and unsustainable gap between the State's revenue and expenditure and downside risks in relation to growth. Consequently, tax projections for 2011 were part of the downside risk identified at my Department. For that reason work is under way in the Department in assessing these risks and devising sustainable forecasts for next year. I am not going to prejudge the eventual figure, which the Government will have to arrive at, at this stage. In regard to the €3 billion figure, it is the indicative figure agreed with the Commission and stated in the Stability and Growth Pact, but events have superseded that figure.

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