Joan Burton (Dublin West, Labour)

Ministers insist that public spending cuts are vital to protect confidence in the country until our debts can be repaid. The other issue is that the negative impact of these cuts will be compensated for by a surge in private sector activity. How can that happen if business remains so deep in the doldrums? There is a simple equation being considered, particularly in right-wing circles, to the effect that when one cuts the State sector, the private sector surges. However, ours is a small complicated economy in that much of the private sector depends on public spending to keep its activity at a reasonable level.

Yesterday's announcement of the greater-than-expected hole in the public purse puts every Member of this House under pressure. The Labour Party will respond to the new situation when it has a reasonable opportunity to assess it and when it receives a considered answer to two vital questions. The first concerns the growth and employment anticipated for 2011. The other is the expected outturns in revenue for this year and next. It is amusing that journalists want instant answers from me and my colleagues in respect of what we will do. Are they seeking back-of-the-envelope calculations that would be carried out in the absence of proper analysis of the most recent data? Ministers are allowed time and space to consider their responses. However, Members on this side of the House are criticised if they indulge in the slightest hesitation. This really is a curious form of politics. I put it down to the Government's very skilful and well-paid advisers spinning very successfully on its behalf.

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