Jim Walsh (Fianna Fail)

Through prudent fiscal and economic management we have now reached a situation undreamt of 20 years ago, and certainly undreamt of by the founding fathers of the State, where average income and GDP are well above the EU average and greater than that of our neighbour, who colonised the country for 700 years. That is a fantastic achievement and it would be an unforgivable sin if it was squandered through mismanagement.

In looking at the moneys which have been spent, it is worth highlighting some issues. This year the Minister is presiding over a budget in excess of €40 billion. This is a significant increase on any previous budget and is up 5% on last year's budget. Two-thirds of that budget is targeted at areas of need, including health, education and social welfare. In 2000 we spent €6.7 billion on social welfare. This will increase to €10.65 billion next year and that is before the application of any increases which will emerge on budget day. That sum is well in excess of what was available previously. These increases must be viewed against a background of significantly high unemployment in 1997 of 10.5%, now reduced to 4.4%. As a result, there is buoyancy in the figures which allows the additional moneys to be targeted elsewhere.

Some people referred to old age pensioners. Fianna Fáil came into power in 1997 after the first ever Labour Party Minister for Finance of the previous Administration had succeeded in giving a derisory increase of about €2 to old age pensioners. The Government is now committed to increasing the old age pension to €200 per week. Since 1997, child benefit has increased by 230%, from €38 per month to €125 per month.

During the last election I called to the house of an old lady in a Labour Party heartland. She told me that one of the Opposition candidates came to her confidently expecting her vote. She told him or her – I understand it was either Deputy Howlin or Ms Avril Doyle MEP – apologetically that she had a free television licence, free travel and her old age pension was in excess of €100 per week.