Larry Butler (Fianna Fail)

I did not interrupt Senator Coffey while he made his contribution.

Over the past decade, Ireland has experienced economic transformation. It is the envy of the world in respect of how we have conducted and managed the economy. The enterprise of the citizens has been guided and led by sound economic policies of successive Governments. I give credit to all Governments that have been in office in recent years. However, the present Government in particular has managed an outstanding economy. This has been achieved while delivering budget surpluses in ten of the past 11 years. The record speaks for itself and the public can be assured of the Government's determination to build, further and achieve the correct conditions for sound growth in the years ahead.

Ireland faces a shortfall of approximately €3 billion in its tax revenues. This is the equivalent to the VAT that would come from 40,000 houses, which is the present level of construction and continues to be invested in our economy. A total of €1.4 billion could come from the 13% VAT rate on such construction, which would leave us with a shortfall of approximately €1.6 billion. I believe that within the next year or a year and a half, a total change in revenue in this regard could take place.

Capital investment must remain a top priority and will ensure that Ireland will continue to have proper infrastructure in the future. As for pension investment in the National Treasury Management Agency, capital should be invested in energy, roads and water. I believe an opportunity exists to invest the pension funds there. The Government should support a national housing agency to provide affordable, social and ownership schemes. I believe an opportunity exists to put affordable housing to the forefront.

I have heard Senator Twomey refer from the Opposition benches to frenzy, developers and greed. Members should not forget that frenzy, developers and greed have put €2.14 billion into the local authorities' coffers from 2000 to 2006. This constitutes an enormous investment at local level, which has given great impetus to local services and should not be overlooked.

In the past 11 years, the Government has invested the fruits of our economic success in schools, roads, public transport and other environmental infrastructures.