Martin Mansergh (Fianna Fail)

I have every faith that the decentralisation process will be successful. Other places will benefit when it is carried forward.

Senator O'Toole made clear that certain pension changes will be subject to a good deal of discussion and, perhaps, negotiation in the context of the next partnership agreement. I do not doubt that the partnership agreement will survive. Senator Ross seems to think there is no evidence that pay deals have done the Irish economy any good. A different view is taken by almost every international agency, including the OECD and the IMF, as well as most commentators.

This budget maintains and underpins the economy as we move towards 2004. The net number of jobs increased by approximately 17,000 in 2003. I have calculated, on the basis of the figures in the budget, that it will increase by approximately 30,000 in 2004. The proposed minimal borrowing level of 1.1% is prudent. One of the best lines in the Minister's speech was "Borrowing is the real stealth tax"– I could not agree more. Inflation is being brought under control and will be reduced to 2.5%. Despite claims to the contrary in the last year, the public finances are in excellent order. We have a really strong basis for progress as the international economy recovers. I notice the Minister's projections for revenue next year are slightly over 5%. I suspect the figures might be quite conservative, not for the first time. There is no harm in erring on the side of caution.