Michael Noonan (Limerick City, Fine Gael)

The 8.6% target is in the programme and is the one we are working towards in preparation for the budget. We do not have the full data yet which would allow us to make full decisions. Yesterday's figures were helpful but there were things in them which were unhelpful as well. The Deputy will notice VAT was below profile. When one comes to the end of the year, it will probably be still below profile so as we go into 2012. We will have to build in a lower figure for VAT than was expected in the multi-annual programme.

There was a dramatic improvement in yesterday's unemployment figures, the largest reduction in the month of September since statistics began. If that is maintained up to the end of the year, one may be putting in a lower figure for unemployment benefit than anticipated for 2012. There are swings and roundabouts. We do not know yet but the working target is 8.6% and we will achieve that. There are all sorts of arguments as to whether we should go beyond that.

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