Brian Cowen (Laois-Offaly, Fianna Fail)

I do not agree with the contention made by the Deputy. The policy framework that we are setting out is about stabilising the economy and then moving forward to growth for the economy, albeit recognising that very serious adjustments must be made. A precondition for growth, investment and increased resources for the State is the establishment of a growing economy, which cannot be established if there is a failure by Government to put to rights the financial stability of the State. No one could suggest that an investment profile would be positive if we are not prepared as a country to bring our finances into order.

If one considers our successive budgets, even in difficult times, the redistributive effects of much of what we have done has shown that, up until recent times at any rate, we have been able to provide standards of social transfer that far exceed European averages. If one looks at the progressivity of our tax system, where the top 8% pays 64% of income tax and 40% on working wages do not pay tax at all, it has been the result of a considerable effort made to improve the situation. Regarding the question-----

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