Clare Daly (Dublin North, Socialist Party)

I understand the Minister's sensitivity as the employment creation process over which the Government has stood led to a youth unemployment rate of 27.5% in April and an overall unemployment rate of 15%. The Nevin Economic Research Institute has indicated firmly that the policies being pursued of consistent cutbacks have succeeded in bringing about a cumulative decline of 26% in domestic demand in recent years. Cutting our way out of the crisis is not an option and the institute has produced very firm evidence in that regard. For example, it indicates a cut of €1 billion in capital spending lowers GDP by between 0.1% and 0.3%, although that may be an underestimation. A cut of €1 billion in public sector wages lowers GDP by a further 0.2% to 0.3%. Where are the measures, as recommended by the Nevin Economic Research Institute, for strategic priority investment in infrastructural programmes? There should be no further cuts in the overall level of discretionary capital and current expenditure. The Government is doing the opposite of what was recommended by the institute and the results will be the same, continuing decline in the domestic economy and hardship for citizens.

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