Brian Cowen (Laois-Offaly, Fianna Fail)

No. In terms of the growth issue, the investment side of the equation is in regard to a capital programme, which has been historically high; it has been twice the European Union average and has been a far better stimulant to the Irish economy in terms of the putting in place of infrastructure than some of the stimulus packages that are often spoken about by the Deputies opposite as being, in the European context, the best way forward.

Our strategy for science, technology and innovation has worked. Increasing resources have been allocated to those areas. The commitment to that agenda has enabled IDA Ireland and Enterprise Ireland at home to scale up companies, improve our export performance and improve our competitiveness. An investment pipeline is coming to Ireland at this time, which is favourable and which has been spoken about. Many companies are investing in Ireland because of the environment we continue to seek to create here for that sort of investment. That has happened against a background of a contraction in the economy of 10% last year and even in that year more than 100 projects were brought to Ireland. That has happened because there is a commitment in regard to those areas, about which Craig Barrett has spoken on many occasions.

There is the question of investing in research and development and improving our education curriculum quite apart from spending more money. There are structural policies and reforms that must also form part of our strategy for growth and recovery in the future. That covers the first point.

On the second point, quite apart from the size of the adjustment, its composition is important. I note what the Commissioner had to say today. I listened carefully to what Deputy Gilmore said in his contribution to the economic debate we had last week. He made the point that in his view the split in the composition of the adjustment, which he stated should be around €4 billion to €4.5 billion, should be split 50:50 between tax and expenditure cuts. Commissioner Rehn made it clear today - I am making the point in terms of how people view it and the opinion on it - that a greater emphasis on expenditure cuts rather than tax raising is important in terms of creating investment opportunities, promoting job creation and reducing the tax on labour would be preferable in this first major phase of consolidation. They are the issues for debate and upon which there can be differences, but at least let us have a constructive debate which recognises the realities. The reality is that this country is currently spending more on the provision of services than can be provided to the Exchequer through the efforts of our hard pressed taxpayers.

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