Brian Lenihan Jnr (Dublin West, Fianna Fail)

I apologise, I knew he had raised another issue. The budget is set for a fixed date in December and the only change we made this year is based on the belief that we can give greater credibility to the budgetary process by laying out a four year track whereby projections for anticipated growth, measures to foster growth and employment and adjustments to expenditure and taxation will be set out in advance of the budget. Furthermore, the end of November returns are an important element in the calculation of the annual budget because they allow for as precise a figure as can be obtained in regard to tax receipts.

Deputy Brian Hayes explored the question of reaching the 10% debt to GDP ratio. He rightly pointed out that our current debt to GDP ratio is the highest in the eurozone. However, until August we were able to borrow at attractive rates because the underlying strengths of the Irish economy were recognised by many international investors. These strengths include our robust export performance, flexible workforce and capacity to adjust our wage and price levels and asset values. Above all, we are moving towards a balance of payments surplus notwithstanding the substantial public borrowing required to fund the State. These factors are recognised in international markets and are among the reasons Ireland has been permitted to be an outlier for so long. The fact remains, however, that our current debt level is not sustainable and it is an exercise in judgment as to how far below it we should go. The Deputy referred to the market sources with whom he had discussed the matter but, while I will certainly take account of his, albeit second-hand, opinion, ultimately I will be guided by the NTMA in my assessment.

I already outlined the basic undertakings given by the State in respect of the Croke Park agreement. The agreement sets out procedures on a definite slate of items but it also provides a framework for the exploration of other issues.

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