Michael Noonan (Limerick City, Fine Gael)

He is. He is talking about the target for 2015 of getting below 3%, which is the nominal deficit. Of course, the pace of growth and inflation has an influence on that. The advice to me at present is that we will meet that target provided we meet the targets of adjustment that were set out in the programme. Before the Deputy came into the Chamber, I quoted what Professor McHale said about the structural deficit. Last night on "Prime Time", he said that no additional consolidation will be required to meet the structural deficit target. He is basing that opinion on very conservative growth assumptions. It is now May 2012 and if one looks at the projected deficit figure for 2015, 2016 or 2017 it is a forecast being made today for a point in time. It is being made on the assumption, however, that there is no policy change of any sort. If there are structural flaws in the economy, any self-respecting Government will try to address them. On the basis of fixing the flaws the structural deficit goes, and the nominal deficit is taken care of after 2015 by modest growth assumptions.

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