John Minihan (Progressive Democrats)

I am sorry to interrupt Senator O'Toole in full flow but I am sure he will have another opportunity to make his views known. I welcome the Minister of State, Deputy Parlon, to the House for this debate. People often find it difficult to be positive and upbeat about their circumstances. This is as true in relation to fiscal, financial and economic policies as it is in relation to any other form of human endeavour. There is no doubt that Ireland's growth has slowed in recent times and that the public finances have become tighter. A number of companies have closed and many workers have been laid off. We have realised that we will be unable to do the things we intend to do as quickly as we would have liked. I do not think anybody in either of the Government parties would have any difficulty in recognising this reality.

One would think, if one was to believe certain commentators, that the country was in dire straits, that confidence had collapsed, that unemployment levels were soaring and that the economy was sinking but nothing could be further from the truth. It is worth stating some of the facts. The economy is continuing to grow, albeit at a more modest pace than in recent years. Our economic performance is, in fact, among the best in the developed world. Despite recent job losses, our rate of unemployment is still at 4.5%, effectively equivalent to full employment. Our rate of unemployment is one of the lowest in Europe and about half the EU average.

It is understandable but sad that Opposition spokesmen would seek to make cheap political capital out of job losses in the private sector. I accept there have been job losses, but due to international factors there is very little any Government or company can do about that. We live in a dynamic economy, not the dead economy created by Fine Gael in the 1980s. Just months ago, the people of Roscrea were devastated by the closure of a local pharmaceutical plant. Today, they are celebrating the re-opening of that plant under new ownership. Opposition politicians might preach gloom and doom, but ordinary people get on with their business and avail of the opportunities on offer in a dynamic and fast-moving economy.

People point to the deterioration in the public finances as if they were in danger of drifting back into the dire straits experienced in the 1980s. This is not the case. We are still running strong surpluses in our current accounts and spending on day-to-day activities is more than covered by tax revenues. Our overall debt levels are the second lowest in the EU, after debt-free Luxembourg, and we are well within borrowing limits set down in the EU stability and growth pact. This is no mean feat at a time when as many as four member states are set to breach the key 3% GDP ceiling on government borrowing in a particular year.