Martin Mansergh (Tipperary South, Fianna Fail)

I thank Senators for their contributions to the debate. Economically and socially, we have just had the best 21 years in our history. The credit for this goes to the people, to social partnership and the contributions of the different governments in that period. As the previous Minister for Finance, the current Taoiseach deserves credit for prolonging our economic growth for a further four years.

Naturally, we did not and could not succeed in entirely suspending the laws of economic gravity nor in suspending the economic cycle. Neither are we in any sense the only country in that position. In the past days the headlines in the British papers pointed out "Brown's £7.5 billion black hole" and "Britain at serious risk of recession as orders fall sharply". However, we still have positive, though reduced, growth prospects this year. The figures just published show that in the first quarter we had a 0.8% increase in GNP. The current revised growth forecast is 0.5% for this year and a growth figure of approximately 2% is projected for 2009. There is no question of us being in recession.

From a Government viewpoint, we are in the strongest financial position that we have been in for 40 or 50 years, with net Government debt at 12% of GDP. In the course of this debate, one Senator said Ireland was the most indebted country in Europe. I do not know where he got that idea. Some 20 years or so ago, in 1986, the level of debt was 122% of GDP. Therefore, there has been an enormous improvement.

Savings are, undoubtedly, necessary. The measures being taken now are interim measures. There is no point in asking now the exact details of the Estimates for next year as those details must be worked out over the next six months. Senators also raised the matter of the enterprise sector of the economy. People must be reminded that companies here enjoy one of the most favourable taxation rates in Europe, at 12.5%, and face some of the lowest charges in terms of PRSI compared to other European countries. Many conditions here are, therefore, favourable.

There has been significant exaggeration of the facts with regard to claiming our booming economy was dependent solely on construction. The latest ESRI quarterly report, for example, pointed out that we had a robust export performance, up 8.2% in 2007 and that overall export performance, including services, was in double figures, which was better than in 2006.