Simon Coveney (Cork South Central, Fine Gael)

I am glad this issue was raised by a member of the party Deputy Moynihan represents. The announcement of an AEOS scheme for this year was made by the previous Minister, but there was no provision in the budget for that. The Department of Finance had no provision for it. My Department had no provision for it. There are expenditure ceilings, to which the previous Government signed up, to reduce current expenditure in my Department by €60 million next year, €40 million the year after that and €20 million the following year. This was done to try to solve the financial mess that has been created here. Unfortunately, we are now required to try to address that under the constraints that are unavoidable.

It is simply untrue and misleading to say that the previous Government had provided for a €50 million AEOS scheme and that this Government is not delivering on it. If the Deputy is trying to paint that picture, he is just continuing the dishonesty that was there when this scheme was announced for the first time. Perhaps he might be able to tell me where he would find the extra €50 million for this scheme. If that was the case, there would have to be €110 million in expenditure reductions next year in my Department. That is the reality. The last Government signed up to €60 million in savings as part of the four-year budgetary programme to allow this Government to access funds from the EU Stability Fund. There was no AEOS scheme included in that. If such a scheme was planned by the Government, then the cut backs next year would have to be €110 million. Two days after taking office I was given a file with a question to the effect, "What are we going to do with the AEOS because we have no money and a promise has been made?" That is the context for a slimmed down scheme for which I had to find €25 million. I had one hell of job persuading the Department of Finance to allow me to open it. People need to know the truth. Unfortunately, some have been playing politics with this issue. The reality is that all of the accounting advice was not to go ahead with the scheme. However, we have gone ahead with it because it is worthwhile.

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