Brian Cowen (Laois-Offaly, Fianna Fail)

Going back to previous points, the economic basis for every programme for Government is set out in the programme itself. It is important to remind Deputies what that is. The review is based on the plan to correct the public finances, which the Government set out in the supplementary budget in April 2009. That budget outlined the path to reduce the deficit to 3% of GDP by the end of 2013. That was subsequently extended to 2014. During the course of this financial year we have seen reductions in growth forecasts internationally and these must be reflected in our domestic situation. We must also reflect the impact of the Greek crisis on Government borrowings for all governments, and certainly for ours. That is another matter that has to be taken into account.

The economic basis of the programme is one to which all the main parties have subscribed. If we are to reach the programme's target, even allowing for the extension of a further year, we must make certain decisions to bring our budgets back into line. What I am hearing from some Deputies today is that they want commitments on various aspects, regardless of the course of discussions which are ongoing. That is not something I should do or can do responsibly. No responsible Government, at this stage of its proceedings, can make that sort of arrangement.

All these matters are under consideration. When one considers that health, education and social welfare account for 70% of the total day-to-day spend one must take into account what adjustments will have to be made to deal with that. I make that general point. One cannot make any assumption based on it, other than that the discussions are ongoing.

Parties such as Fine Gael and Labour adhere to the target of reducing the deficit to 3% of GDP by 2014. They cannot ask me to implement a programme in full if the economic basis of the programme has been changing, and it has been changing. That is acknowledged by everyone who wants to live in the real world. The luxury of sitting high on the Opposition benches is fine for Deputy Ó Caoláin. In the meantime, no responsible Government can fail to take cognisance of the present economic situation.

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