Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

I welcome the publication of the summer economic statement. I want to thank the Taoiseach for giving me the opportunity to serve in the Department of Finance with the Minister, Deputy Donohoe, and the Minister of State, Deputy D'Arcy. This is the first opportunity I have had to speak in the House since my move.

In fairness to the publication from yesterday, I want to start by referring to some of the remarks that were made earlier about strategy and how it cannot be all about economic growth, the potential growth in the economy and the fiscal space. The reality is that if one wants to have a reformed public sector, invest in public services and, as we all do, have an improved situation for all of our citizens - whose sacrifices have been massive in bringing the country back from the brink and putting us in the space in which we find ourselves just five short years after first going into government - then we need to talk about economic growth. That growth is the key driver of the strategy. As the Minister of State, Deputy D'Arcy, said, not everything is right, but not everything is wrong either. Seven out of ten people who lost their jobs in the biggest crash that this country ever experienced now have the opportunity to get up in the morning and go to work. That is a massive achievement in such a short period and it is on their backs and those of the people who took cuts - and of those who ultimately paid a massive sacrifice in having to leave the country or in losing their jobs - that we are in the position in which we find ourselves today, talking about having an additional €500 million to spend next year and total Government expenditure of €60 billion. These are not insignificant amounts. The Minister, Deputy Paschal Donohoe, has been very clear in asking people to not just look at the incremental increase but at the overall picture and the totality of what it is that we, as a Government, will spend in the forthcoming year.

There is no doubt that there are challenges. Without challenges, there would be no need for a Government. The reality is that, as the country continues to develop and as we are able to put more people back to work and drive down our debt and our deficit, we will be able to invest far more than we are in a position to currently to face those challenges. The first and most important thing that we have to bear in mind is that, while the Government is in a brighter position than it was in 2011, we have to be responsible, fair and realistic. We have to be realistic with people's demands. There are many competing demands. We also have to be compassionate and fair, and we have to recognise that we did not get everything right in the past five years, but we also did not get everything wrong. If we got everything wrong, we would not be in the position that we are in today where unemployment is a fraction of what it was when we first went into government. People now have opportunities of which they can avail.

When we first came here in 2011, little did we think that, within five years, we would be talking about spending needs, capital needs and the need for additional resources across a range of public sector areas. What we were talking about at time was whether this country would survive. It has, on the basis of the commitment that was given, and the contribution that was made primarily by the public in general. The partnership for Government model and the programme for Government outlines a number of priorities that we have as a Government. In the area that I have responsibility for, reform is a huge part of the agenda. This morning, I launched a report on what the Organisation for Economic Co-operation and Development, OECD, makes of what we have done in the context of the reform we have managed to bring about in conjunction with our civil and public sector in recent years. It is remarkable, and many of the achievements go under the radar. One does not get credit for the things one does right, one merely gets criticised for the things one does wrong.

This debate is an opportunity for us to reflect on what our civil and public sector has done in an era of unprecedented economic difficulties and all without a single day of industrial unrest. It is a remarkable achievement for a country to come through what we did with the unity of purpose that we have had, and our civil and public sector needs to be acknowledged for that as well. There is no doubt that the challenges are massive, but we have to be in a space that manages expectations now, both politically and otherwise. The fiscal space, the ceiling caps or whatever on wants to call them that the Minister has outlined are modest. The overall increase is modest relative to the total amount in the budget, but the forecast is much healthier for the years 2019 to 2021, inclusive.

In the context of where we currently stand, we are going to be able to start looking at capital programmes across the country, regional focus and the deficits that exist in many different parts of the civil and public sector. In doing so, we have to ensure - the Minister also said this - that the rainy day fund, while it is not €1 billion, has the extra €500 million, now being put into capital, allocated to wealth generation.

This, in itself, will be a driver of the economy and will allow people with the opportunity, as I have said in the House on several occasions, to have the dignity of being able to get up in the morning, pay a mortgage and put their children to school in their local areas. Those challenges are going to be great.

The national planning framework is coming at a time when we are going to be able to announce a capital programme. It will set the blueprint for the development of Ireland in future. That is critical. It cannot be along the haphazard lines it was, as I have said often. It cannot be a "Late Late Show" approach whereby there is one for everyone in the audience, whether hubs, spokes, wheels, or whatever people are having. That means nothing and no one believes it. We have to ensure whatever is presented by way of a national planning framework and the capital spending plan is realistic and deliverable. The public must be able to see these are the types of initiatives that will ultimately lead to a greater level of wealth generation and that will result in everyone's boat rising incrementally.

As I said and I will say it again, realism is the most important thing at this time. We need to manage expectations and be fair and compassionate. We need to realise there are elements in society that are not where we would like them to be. That is our focus as a Government. It is part of the programme for Government and the confidence and supply arrangement we have with Fianna Fáil. That is key and to the fore.

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