Brian Cowen (Laois-Offaly, Fianna Fail)

That is why policies and actions to create and sustain jobs are of paramount importance. It is reflected in the loss of national competitiveness in recent years. That is why we will introduce proposals for further reducing costs and improving competitiveness across the economy. It is reflected in the extent of the repairs that are required to our badly damaged financial institutions. That is why we must conclude the process of banking reform and recapitalisation. The scale of the challenge is reflected in the size of the gap between our income and expenditure as a State. That is why we need to continue the process of reducing the deficit, with measures to increase growth, jobs and revenue and to reduce public spending. We will not be overwhelmed by the realities we must face. We take great encouragement from the significant progress that has been already made in tackling this unprecedented crisis. Our objective now must be to build on the decisions we have taken and the stabilisation we have achieved. Now we must push ahead to grow our economy, create jobs and bring down the deficit.

A crucial element in building confidence in our capacity to overcome these problems is to realise the strengths we have and the strong performance which continues in many parts of the Irish economy. We still have 1.86 million people at work today, which is approximately 480,000 more people than were at work in 1997. This is a highly qualified and productive workforce, working in an economy where a high proportion of our output comes from the innovation-intensive, high value-added and growing high-technology sector as well as in an indigenous sector that is now more efficient and competitive than it was when the economic and financial crisis hit us in 2008.

That is reflected in our export performance, which has recovered rapidly this year, despite the very difficult international trading conditions. Today's figures from the Irish Exporters Association show a 12.8% growth in merchandise exports in the third quarter and a 9% increase in total exports on the same period last year. It is expected that the balance of payments of the Irish economy will move into surplus next year. The level of exports and capital inflows is set to exceed imports and capital outflows from next year on. That fact tells us our economic relations with the rest of the world are firmly pointing towards our capacity to pay our way, to service our debts and to achieve economic and fiscal stability.

Ireland's real competitive strength is further reflected in the continuing flow of investment announcements and the expansion of employment by world leading international companies which still see Ireland as the location of choice for many of their activities. Last week an IBM survey stated that Ireland was the best location for direct investment. Many of the best and largest companies in the world have decided to locate their higher value-added activities in Ireland and we are seeing a high and growing proportion of firms engaged in research and innovation. That inherent competitive strength also reflects the realism and flexibility of our people at work across the entire economy.

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