Eugene Regan (Fine Gael)

From the particular to the general, the ESRI report is unhelpful and its analysis is flawed. We are not in a situation where we are dealing with pure economics. We are dealing with political economy, which is what economics is about, and there are political and economic constraints on this country at present. On the political side, we have entered into commitments in Europe in the context of the Stability and Growth Pact and we also have political agreement among all political parties in respect of the target of a 3% budget deficit by 2014. That is very important. On the economic front, we read today the analysis of the former Taoiseach, Mr. John Bruton, of the importance of export-led growth, which was the basis of the Celtic tiger and to which we need to return.

The property market is stifled by NAMA and investment and consumption is constrained by uncertainty. Uncertainty is most damaging to economic growth. There is certainty now as to where we want to get to in 2014 and it is important we end the uncertainty by sticking with that policy and going for the necessary cutbacks and control on the public finances. That means we must look at an bord snip nua and the Croke Park agreement, and all bets are off in respect of many of the sacred cows we have adopted in this country. We must get the public finances in order. In that regard, it is important we do not enter into denial once again. We must make hard decisions and we must pursue the necessary control of the public finances.