John Dardis (Progressive Democrats)

I would like to know the roads the Opposition built when it was in power.

This is an expensive economy, but it is also an economy with high incomes. That is why people are coming to live and work here. They will have a standard of living here that they could not dream of in countries with high inflation. If I were asked to choose between an economy that is growing at a rate of up to 5.5%, which is the ESRI projection for next year, and inflation of 3%, and a European economy that will grow by 1%-2% but with an inflation rate of 2%, I would prefer to be here. At more than 5%, our growth is higher than the level of inflation and our economy is not standing still or atrophying as is happening in some mainland European countries.

We must appreciate what we have. We seem to be continually whingeing about these matters. That is not to say they are not important. Senator Quinn is correct when he says they are highly important. The Government is conscious of how important they are and that is why we are pursuing our policies. These will ensure that the Government fulfils its responsibilities vis-À-vis the degree to which it can control inflation.

We keep hearing that Ireland has the most open economy in the world. If we have such an open economy, we will be vulnerable to what happens on international markets in energy and other imported goods. I accept much of what has been said about the regulator and the increases that take place. People think that oil is bought on an on-the-spot basis where energy suppliers go out every week and buy another few drums. It is bought months in advance. Therefore, these things take time to feed in. There are swings and roundabouts. If the price goes up the regulator is wrong, but he is also wrong if the price goes down. There must be a benchmark that allows people to plan ahead. No business can plan on the basis of a day-to-day price on the international oil markets. If an agri-company is buying feedstuffs, it will do so on a forward market. It will factor in currencies to ensure it knows the price the product will be and will not be vulnerable to the huge variations that can take place. I am sure Senator Quinn is aware of that from his own business.

What can the Government do? It can make sure that the economy is competitive. I believe the economy is competitive. Senator O'Toole made a point about productivity, but productivity has increased. I met a senior executive from one of the big American technology companies that has an Irish base. I asked him why it did not go to the Far East where the labour is cheaper. He replied that the labour content of the unit produced in Ireland is cheaper than the labour content to produce a unit in the Far East, even though the rates of pay are much less. We produce a better unit.

Some things are imported and we must accept that. Our currency is part of a pan-European one and we are therefore circumscribed to a certain extent. This is where the difficulty arises with European growth being at a lower rate than ours. We must have a sense of proportion about this. I do not see that sense of proportion in the columns of The Irish Times and other eminent newspapers.

I return to the point that economic climate in the 1970s and 1980s was appalling. It was appalling. The best way we can combat poverty is to provide jobs. One should look at the forecasts for job creation next year. If this country were not competitive, if there were inflation, as seems to be suggested by those opposite, and if that were so catastrophic, jobs would not be created and we would go back to the bad old days when there was 14% unemployment, inflation was going through the roof and we paid 20% for our money.