Frances Fitzgerald (Fine Gael)

It is clear that the situation is out of control and the vagueness of their response was embarrassing to watch. Reforms of spending and project evaluation should have been introduced in previous months and years. The manner in which Ministers outlined their extraordinary list of cuts was unacceptable. The implication given at the public press conference was that spending on education and health would not be reduced, yet now we find that one third of the cutbacks will come from health. Some €85 million will be cut from supports to elderly people trying to meet the cost of nursing home care, €38 million will be saved through the slower roll-out of health projects and €21 million will come from what is described as other savings. Similar cuts will be imposed on education. The worrying reality is that cutbacks will hit front line services.

This morning's edition of The Irish Times carried an article titled "Tanker-like ship of public finances heading for the rocks", which reports: "This six percentage point deterioration amounts to the most rapid two-year decline of any euro area country at any time since the single currency was launched." That is the reality of our public finances because of mismanagement by the Taoiseach while he was Minister for Finance. The article also stated: "The surge in spending before the last election explains a large part of how an unusually big surplus in 2006 had all but evaporated in just 12 months." I hope the public sees clearly the mismanagement that has been at the core of Government financial policy and public spending over the period of its term in office. The fruits of the Celtic tiger should have been invested in health and education and the growth in the economy should have been managed so that we could have proper public services. Instead, we are seeing cutbacks in vital front line services. That is unacceptable and extremely disappointing for the public.