Mary Harney (Dublin Mid West, Independent)

That is correct.

Nobody underestimates the serious economic challenges this country faces. Notwithstanding that, it is important in political, public and media discourse to have a sense of perspective. We must have it for many reasons. Reference was made yesterday to confidence. Deputy Gilmore spoke about the "confidence fairy". Confidence is not a policy but it is important, as are attitude and mood. They are important in terms of our perception of ourselves and to inspire confidence among those who lend us money. Some €2 out of every €5 we spend running this country at present are loaned by people outside this country. It is important that those who invest in this country and those who want to expand their businesses here have confidence.

Householders are currently saving just under 12% of income. Normally, a figure of 3% is considered very good. The reason people are saving and hoarding is because they are being cautious and do not have the confidence to spend. They will not begin to spend until they have confidence. Equally, businesses are running with precautionary cash surpluses.

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