Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I think everybody can agree that the future prospects for the country depend on growth and job creation to restore confidence and give people the opportunity to have a career and contribute to their local economy and, as a consequence, to the country. Deputy Donnelly is aware that, in the past 12 months, the Minister for Public Expenditure and Reform announced a €2.25 billion stimulus for issues like Grangegorman, the building of a range of schools under the public private partnership programme and major road developments in different parts of the country. These are all helpful in terms of construction jobs, employing people, providing infrastructure and spending capital where employment is involved.

Since the figures were submitted to the European Commission, there have been new movements in the area of growth and the tax position. Quarter 2 national accounts data show that domestic demand is stabilising and is moving to a modest recovery path. We are now clear that 3,000 jobs are being created every month in the private sector, which is welcome. We are happy to note the reduction in the unemployment figures, from 15.1% last year to 13.4% in August. We are happy to see 14 consecutive months of a reduction in the live register, and every 10,000 people who come off it represent a saving of €90 million. Personal consumption in quarter 2 is up by 0.7% on the previous quarter. The construction sector started to expand again following growth in quarter 1. Investment in machinery and equipment also grew. These are signs of confidence. Of course, it is not where we want be. The latest data over the summer show positive retail sales, with a year-on-year increase of 1.3% in July. It is not a case of domestic demand continuing to contract.

When the full picture emerges of the tax stream, growth figures and projections for the period ahead, the Government will want to meet its targets and will make its decision as to how to continue to build on the platform of confidence that is rising in different sectors on the basis of whatever flexibility is available. It is clear that too many people are still unemployed and that other countries have an impact in terms of their capacity to purchase what we produce. Europe as a unit also needs to make a range of decisions. When all the figures become available, the Government will tease this out and make its decision collectively in the best interests of the people and our economy.

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