Alex White (Dublin South, Labour) | Oireachtas source

The spring statement sets out a solid basis for continued and sustained recovery in personal incomes and public services over the coming years. It is a more open, transparent and rational approach to the budgetary process that is informed by best practice in countries such as France and Britain. By setting out the economic assumptions and fiscal parameters that will inform the budget decisions we take in six months, it gives political parties and others an opportunity to be part of a rational discussion about budgetary choices and priorities. Such a discussion is essential to ensure our economic and fiscal recovery is not put at risk and its fruits are used effectively and shared fairly. The negative reaction of Sinn Féin, Fianna Fáil and others in opposition suggests they fear a rational discussion in which they must either accept the projections and parameters in the spring statement or propose realistic alternatives based on facts from the real world.

Publication of the spring statement paves the way for a national discussion about the choices that face us in the run-up to the budget. The next stage will be a consultation with social and economic bodies and organisations through a national economic dialogue, which will also take place well in advance of the budget. We want to hear their analysis of the economic and fiscal parameters we have outlined and their priorities now that we are emerging from recession and have the capacity to increase public spending and ease the burden on family incomes. This discussion will also be informed by the capital review, which will be published in June by my colleague, the Minister for Public Expenditure and Reform, Deputy Brendan Howlin. The review will address capital investment in broadband, transport, schools, housing and other areas.

The palpable unease at the prospect of a rational debate about budget choices among Sinn Féin and Fianna Fáil Party Deputies and some others on the Opposition benches suggests they have little confidence in their economic policies and claims. I understand the reasons for their obvious discomfort. Four years ago, the economy lay in ruins as a result of the disastrous boom-bust policies of Fianna Fáil, which were implemented with the assistance of the Green Party. If given a chance, Sinn Féin and other parties on the Opposition benches would, at least on current form, wreck the economy again by pursuing senseless policies that would bust the recovery.

As a country, we have worked hard to create conditions that are set to deliver steady, year-on-year increases in public expenditure and family incomes. This will only occur if we stick with the effective approach that has delivered recovery. The recovery would not have taken place if we had told the troika to take a hike and take its money with it, as advised by Deputy Gerry Adams in 2011. If we had followed that advice, the country would have run out of money by the end of 2011. Such economic illiteracy would have meant the State would have had no money to pay old age pensions, social welfare, nurses, teachers, doctors or gardaí in the past four years. That is what I call austerity.

I will respond to the contribution of Deputy Colreavy, whom I respect, in a moment.

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