Liam Twomey (Fine Gael)

There is news we are hearing today that there will be a budget deficit of up to €8 billion this year. Given that growth rates are falling faster than a barometer reading before a storm, this is an issue of major concern. The Taoiseach is stating the national development plan is being prioritised but this is another way of stating cutbacks are due. To date, the collateral damage of the events the Taoiseach has been describing has affected sick children at Our Lady's Children's Hospital, Crumlin, and patients in day-care centres in his own constituency. These are the ones who have been receiving this prioritised treatment so far.

There is a serious need for this House to continue to have the range of debates it has been having on the economy. It is the failure to reform and cut back wasteful expenditure over recent years that is putting us in this position today. The Leader should arrange for regular debates on the economy so we can track what is happening. This is a very serious issue. The expected budget deficit this year of €8 billion reflects very different circumstances to those that obtained even last December. There is a predicted deficit next year of up to €10 billion, which demonstrates a considerable change in the economic outlook. Growth rates are dropping to 1% this year and there is a predicted growth rate of 2% for next year. If the present downturn continues, we could see ourselves in a recession very soon.