Martin Mansergh (Fianna Fail)

I look forward to seeing and reading the Fine Gael Party's root and branch reforms of public spending. It will be interesting to note the extent to which such reforms will be agreed with other possible partners.

I warmly welcome the Minister and the Book of Estimates. The Estimates form part of a four stage process, the next stages of which are the budget, followed by the Revised Book of Estimates and, finally, the Finance Bill. We cannot usefully discuss the important area of capital spending today as it is mainly based on the 2005 envelopes. In response to the previous contribution, I have never known a year in which so much infrastructure, including a further section of the M50, the Monasterevin and Cashel bypasses, the Luas and so forth, has come on stream. These developments are making a major difference in terms of improving our infrastructure. We are in a very strong economic position and the Estimates are designed, as no doubt will the budget, to consolidate so that we can move forward smoothly and steadily. The Minister's most significant comments were to the effect that the speed with which a surplus turned to a deficit in 2000 showed how important it is to be prudent and to manage public services at the top of an economic cycle so that services are not totally disrupted and set back when the downturn comes and these tax revenues ebb. This has been a constant theme since the Minister's first interview on being appointed to the finance portfolio. He has emphasised the importance of stability.

As an approximate benchmark, growth plus inflation produces spending power which in this case is 6%, pre-budget. Our resources are increasing by double digit figures and what is provided in the Estimates could not possibly satisfy all needs. Trying to go faster than a certain pace creates inflationary pressures and less value for money. One must adopt a steady approach.

There has been much debate recently about the ideological colouring of the Government and the Taoiseach. Any Government that achieves near full employment; the end of emigration; introduces a minimum wage; by and large has profitable State companies with one or two exceptions; has the lowest impact of tax on the lower paid anywhere in the European Union; is overseeing a steady improvement in services; and has coffers overflowing with capital and corporation taxes——