The recently published abridged Estimates volume for 2003 and last week's budget have been framed in very different circumstances from those of previous years. Members will be aware that on budget day last year the projections for 2003 and 2004 signalled projected deficits for each of those years. Since this time last year the situation has become more difficult because of the unexpected continued weakness of the international economy. While Ireland may be an island geographically, it is certainly not an island in the economic sense. We live in a small open economy and cannot avoid the effects of the slowdown in world economic growth. The challenge, therefore, for us is to see what steps we can take to place ourselves in the best position to benefit from the international economic upturn when that occurs. The first priority is to get back to a sustainable rate of spending growth in order that it is more in line with available revenues. This does not mean a reduction in absolute levels of spending nor does it mean a low level of public spending given the levels of increase in recent years. However, it requires difficult decisions if we are to protect and maintain the economic gains we have made in recent years.