Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

It is correct. The outturn expected in the current year in general Government terms is a deficit of 0.2%. At a time when the economy is growing so strongly after seven or eight consecutive years of growth, that proposal would result in the budget deficit trebling next year in proportionate terms. That is not the right decision or the right course on which to take our country at this time.

The rainy day fund proposal is one which we very much support. Of course, it has to be structured correctly and we look forward to engaging with the Government in respect of the legislation in that regard. In very simple terms, one of the real lessons we must have learned from the crisis is the need to pursue counter-cyclical policies at the appropriate time. Hopefully it will not materialise, but there is a significant risk of the economy overheating. We need to start putting money aside to have a buffer in place so that when an economic shock arrives at our door, probably from an external source, we do have resources to deploy and the first decision the next Minister for Finance, whether that be Deputy Pearse Doherty, Deputy Donohoe, myself, Deputy Burton or whoever, has to make-----

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