Brendan Ryan (Labour)

The first point that needs to be made on reading the quarterly national household survey, or the Minister of State's speech thereon, is that we should all celebrate. Before I talk about the good and bad aspects of the report, I must say I would rather have the Ireland of today, with its particular problems, than the Ireland that existed when I joined the Seanad nearly 25 years ago. Perhaps I will list the present problems later but I will restrain myself to a degree and will not point fingers at those responsible. However, one should bear in mind that the country was in a mess in 1981. It was in a mess for a considerable period and stabilised in the period 1983 to 1987 in the teeth of considerable international problems. This was due to a combination of Mr. Haughey's leadership — I concede this — and that of a succession of good Governments up to 1997, in addition to the leadership of a Government which at least did not spoil it all from 1997 onwards.

The most fundamental point, with which Fianna Fáil has a considerable problem, is the degree to which consensus was built. Fianna Fáil has a difficulty with this because it likes consensus only when everybody agrees with it. It is not very keen on consensus when it is in Opposition. I remember the famous slogan that health cuts hurt the old, sick and poor, which was emblazoned on posters across the nation in 1987. When Fianna Fáil came into office, all the health cuts that had hurt the old, the sick and poor were not only retained but also made worse. Reference was made to the existence of a better approach but I remember the immortal words of a very well-known Member of this House who responded that Fianna Fáil said there was a better approach but did not say it would be easier. That Member is not present.

The problems of which we speak are the problems of prosperity. However, let us not listen for too long to the view that something dramatic happened in 1997 such that the country suddenly took off on a new track. No Government in the history of this State inherited an economy in better shape than the economy Fianna Fáil and the Progressive Democrats inherited in 1997. Some 50,000 jobs were created in 1997 and there was a budget surplus. Deputy Quinn's three years of stewardship in the Department of Finance resulted in an average growth rate higher than that which obtained during the period in which Mr. Charlie McCreevy was Minister for Finance. Deputy Quinn's term in office resulted in a lower average inflation rate than that during Mr. McCreevy's term in office.

We can all play games with the statistics and choose data selectively. For example, the Government likes to talk about the unemployment rate in 1997 but one does not have to have a degree in economics to realise there is always a lag between the beginnings of good performance in an economy and the reduction in unemployment — one has only to read and keep in touch with world developments to realise this.

Order in public finances, which results from a well-run economy, and business confidence must be restored because they are necessary preconditions for a thriving economy. They permit the gradual expansion of public services, leading to greater employment in the public sector, and the creation of a climate of confidence within the economy which encourages employers to employ more people and creates a climate in which it is possible to attract foreign direct investment. Foreign direct investment in turn generates employment. The achievement of business confidence is more difficult than creating order in public finances but is equally important.

I do not dispute the fact that the first two years of the Labour Party-Fianna Fáil coalition Government achieved many things. The portion of level-headedness contributed to Fianna Fáil by the Labour Party undoubtedly helped to produce rational economic policy.