Martin Mansergh (Fianna Fail)

I fully agree that Fine Gael deserves much credit for the Tallaght strategy. In the period in question, the high growth rate of between 8% and 10% and surpluses of up to £4 billion put great strain on infrastructure. The Government had leeway and people from all quarters were pressing us to spend money. The Minister for Finance maintained a substantial surplus for most of the five years in which the previous Administration held office until the downturn hit. I cannot say in which areas Senator Higgins would have refrained from spending during the period.

We still have considerable infrastructural and social needs and I am not sure the criticism that we engaged in overspending can be sustained. Cumulative growth of more than 8.5% resulted in huge bottlenecks which needed to be tackled and which involved increases in spending. People's expectations have risen way above what they were and while that is on the whole a good thing, we must manage demand sensibly. I do not accept the criticism. We used the margins that resulted from the establishment of a healthy financial position. I am not sure that holding money in reserve to alleviate the top rate of tax should have been or should now be the priority.