Brendan Howlin (Wexford, Labour) | Oireachtas source

Some have argued that rather than seeking consolidation of our position with international support, we should have harnessed whatever remained of our resources and, with a final throw of a dice, spent it all in an effort to reinflate our economy, regardless of the international economic environment. We tried that before, in 1977, and it led to more than a decade of hardship. As I have stated consistently, Government policy is not focussed solely on getting the deficit down, important as that is.

We have supported enterprise and job creation through direct investment and structural reforms, measures that are now demonstrably beginning to bear fruit. We have also sought and secured better terms from our international borrowers. Our task now, as the Minister, Deputy Noonan, stated, is to plan for the future. We must ensure that the sacrifices of the past few years have not been made in vain and that we use the progress made as a platform for future sustainable growth and development.

Expenditure Consolidation

The expenditure measures I am announcing for 2014 amount to €1.6 billion from an overall consolidation package of some €2.5 billion. We have gone a long way in meeting our fiscal targets. At the end of 2010 the deficit was more than 30%, a truly staggering sum. Our target deficit for 2014 is 4.8%. Since we took office in 2011, this Government has managed to reduce spending in a balanced, strategic and responsible way.

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