Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

That is symptomatic of the Government's approach to the wider economic situation, and that situation is not healthy, irrespective of what figures one looks at. I expect that the next report from the troika will be somewhat more nuanced than the previous ones. Strictly numerically, we are on target, because of the work of the previous Government. The current Government has followed through on that and has introduced one budget so far, involving €3.5 billion. The main area in which I would fault the Government is its approach. It seems to be going for the line of least resistance. There is no radical reform taking place that will have a sustained influence on Government finances.

The Government took a hodge-podge approach to the budget in the hope that economic growth would take care of our problems. The economy is not growing at the rate predicted, however, which means the targets are not materialising. That casts a shadow over our sustainability. Our EU partners, who continue to hear a confused message, ask us why we are looking for a reduction on bank debt if we are performing so well.

The troika's target on mortgages has been missed, the Personal Insolvency Bill is being delayed and those who desperately need help with unsustainable debts are left in a financial limbo. It is also a poor Bill. Second quarter GDP is flat and it avoided slipping into recession this year by a mere €3 million. Consumer spending and investment is down by 18%. The labour force has shrunk by 30,000 in the last year. We have a huge problem in the domestic economy and the measures implemented by the Government have been ineffectual. The 430,000 people who are on the live register will be taken aback to hear the Government's claim that it is 95% on target with the jobs action plan given that it has had no impact on the numbers unemployed.

The stimulus plan was disappointing. We calculate that the €2.25 billion in additional spending is being spread over seven years, which averages at €320 million per annum. That is a fraction of 1% of GDP. The Government cut capital expenditure by €750 million this year and a further €550 million next year. It is not making the cuts to current expenditure because wants to avoid as much pain as it can but if it is genuine about a stimulus plan it should maintain the capital programme by investing in school building, summer works and other projects that would stimulate a measure of employment. We estimate that last year's cuts to the capital programme cost approximately 8,000 jobs. It could demonstrate its commitment to address the jobs crisis through the capital programme.

I welcome the Taoiseach's statement on the debt issue with Francois Hollande. He stated that Ireland is unique because the European position was imposed on it and the Government did not have the opportunity to burn bondholders. It was the first time he admitted in a calm and non-partisan environment that the bailout was imposed by the European institutions. Despite the promises by Fine Gael and the Labour Party to burn the bondholders -----

See this speech in context