Joan Burton (Dublin West, Labour)
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Question 74: To ask the Minister for Finance the level of economic growth in Ireland for the first five months of 2008; the expected level of economic growth for 2008 as a whole; when his Department's economic growth forecast for 2008 was last revised; his view on recent further downward revision in economic growth forecasts, with some respected commentators forecasting economic growth of 1% or less for 2008; his proposals to tackle falling growth, rising unemployment and persistently high inflation; and if he will make a statement on the matter. [21985/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Figures on economic growth are published by the Central Statistics Office on a quarterly basis, generally speaking one quarter in arrears. Data for the first quarter of this year will be published at the end of June or early July. The indicators available point to a softening in the economic conditions in the opening months of the year.

At budget time my Department forecast GDP growth of 3% for 2008, while pointing out a number of risks to this forecast. Those risks have materialised. The external environment has weakened. The short-term outlook for the US and UK has become less favourable while the growth rate of the euro area economy is expected to slow, albeit not to the same extent as in the US and the UK. At the same time, the appreciation of the euro against the dollar and sterling is becoming a cause for serious concern. Oil, food and other commodity prices have risen in recent months and the international financial market difficulties have been more prolonged than initially hoped.

Domestically, we are experiencing a sharp adjustment in the level of new house building and this is having a dampening impact upon the overall rate of economic growth. The range of the main economic forecasters spans from a low of 0.5% to a high of 3.5% for GDP for this year with the consensus for growth now approximately 2%. Compared with last December the current market consensus forecasts for this year and next have been revised downwards.

While my Department has not published revised forecasts the situation is being closely monitored. Clearly we are in a more challenging economic environment with several key indicators showing a slowdown. It must be emphasised that we face the slowdown from a position of strength and, once we take the appropriate steps to overcome the short-term difficulties, my Department expects the medium term outlook is for a pick-up to more sustainable rates of growth. It is of note that others, including the ESRI, share this assessment as evidenced by its recently published Medium Term Review: 2008-2015, in which it anticipates growth averaging 3.75% over the medium term.

How we respond to the short-term difficulties is important. To safeguard our growth prospects we need to improve our competitiveness, raise the level of exports and improve the productivity in the economy. Continued productive investment will also be important to help raise productivity and living standards and maintaining a low burden of taxation will also help stimulate private sector investment and participation in the labour force.

Joan Burton (Dublin West, Labour)
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Will the Minister elaborate on whether he has plans to deal with what one respected firm of accountants yesterday called a pandemic of uncertainty which is now contaminating not just the construction industry, to which the Minister referred, but all sectors of the economy — what in the United States is often called the real economy as opposed to the construction industry, which is sectoral and undoubtedly has huge difficulties?

I noticed yesterday that the Minister saw fit to lecture people. I want to ask him about his comment yesterday that consumers and businesses must put up with high fuel prices and that we are not to "whinge". Does this mean that some woman with her children——

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy would want to read the quotation.

Joan Burton (Dublin West, Labour)
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The Minister is quoted in The Irish Times and other newspapers today as saying "we have to adjust our expectations" and "modify our behaviour" instead of "whinging". Mothers who go shopping often have their children with them and the children whinge as they look for a bar of chocolate and so on. Is the Minister telling consumers to cut the whinging? He is the one on a salary of €250,000 and the Government has decreed that he will get a €20,000 increase shortly. Who is entitled to whinge? Will the Minister explain those comments? Will he withdraw his charge that people should stop whinging?

Perhaps people have something to whinge about — those losing their jobs, the businesses closing down, the construction workers becoming idle and in particular the shoppers, mothers and fathers who push trolleys around with their children, who find the price of a basket of goods a difficulty and find it difficult to make ends meet at present. Perhaps the Minister will agree that some of these people are entitled to feel let down by the Government and the Taoiseach and by the former Minister for Finance, who made a bags of stamp duty reform and partly brought us to where we are now.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The question asked by Deputy Burton is of course based on a misapprehension. I did not characterise any of the individuals referred to by Deputy Burton as whingers in the article, nor would I.

Joan Burton (Dublin West, Labour)
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Whinge.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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If one is prohibited from using a word in the language, I will follow Deputy Burton's injunction and refrain from using the word again. However, I will say this——

Joan Burton (Dublin West, Labour)
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The Minister used it yesterday. He acknowledged he talked about whingers.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Yes, I did use the word. The manner in which Deputy Burton presented her question would deserve the sobriquet. The matter I was addressing was the increase in oil prices, which is a very serious matter with very serious impacts for the people to whom Deputy Burton referred — I agree with her on that. I was addressing the fact that we have very difficult choices to address in that context. We do not set the price of oil for ourselves, it is set for us by those with whom we deal. Given the character of the increases we have seen worldwide, it will impose on us certain disciplines. We have a choice, we can, as I said, complain about it or we can decide to take the actions that will address the problems it poses for us.

Joan Burton (Dublin West, Labour)
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Will the Minister tell us——

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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That is precisely the point I was addressing in the article and it is all I was addressing. I was in no way lessening the concern I have and that the previous Minister had in regard to those who are most hard-pressed by this. The previous Minister addressed that matter in his social welfare measures in the last budget.

Seán Ardagh (Dublin South Central, Fianna Fail)
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We move on to Question No. 75.

Joan Burton (Dublin West, Labour)
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May I ask a brief question?

Seán Ardagh (Dublin South Central, Fianna Fail)
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No, we are well over the time. No brief questions are allowed.

Joan Burton (Dublin West, Labour)
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Does the Minister withdraw the word "whinging"? Was it a mistake to call consumers and businesses whingers?

Seán Ardagh (Dublin South Central, Fianna Fail)
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We are on Priority Questions. Deputy Kieran O'Donnell has asked Question No. 75 and I call the Minister to respond.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I explained the context——

Joan Burton (Dublin West, Labour)
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Will the Minister withdraw the word "whingers" in regard to consumers and businesses?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Excuse me, Deputy, am I allowed to speak?

Seán Ardagh (Dublin South Central, Fianna Fail)
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We are on Priority Questions. We must move to Question No. 75.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I explained the context in which I used the word.

Joan Burton (Dublin West, Labour)
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Does the Minister withdraw it?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I indicated that I observe Deputy Burton's injunction not to use it again.

Joan Burton (Dublin West, Labour)
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The Minister should withdraw it.