John Gerard Hanafin (Fianna Fail)

In supporting the Government's policies I am cognisant that in 1986 we had a budget deficit of 13%. Some elements of the media keep pressing the issue to the effect that we will not be able to manage our finances, and nothing could be further from the truth. Historically, we were in much more difficult situations in the 1980s, where today only 17% of Government income goes on servicing the national debt. In those days it was 33% but within the two years, 1986-88, the deficit had been reduced to 3.3% of GDP. Take the current situation and remove the once-off payment for the banks. In the context of the banks we had a situation where there was a very low debt-GDP ratio, so we were in a position to take on the burden of the banks, put this onto the national debt and still be below 80% of debt as a percentage of GDP. Therefore, of course it is possible to manage, given the will and understanding that exists. Those who wish to see what can be done should just look at the last two years, where we took €14.5 billion out of the economy to improve our finances. We now need to take approximately another €14.5 billion out over the next four years.

I am very cognisant that if this type of money is taken out of the economy, the latter needs to grow at very strong rates. However, we have positive news too. Look at the UK, one of our strongest trading partners, which is looking at 2.8% growth this year. Ireland exports more to the UK than the exports of Brazil, Russia, India and China combined to that jurisdiction. We are major trading partners, and Britain is not in recession. It looks as if the rest of Europe will continue with a positive outlook. The outlook for the United States too is sanguine, despite the fact that some quantitative easing might have to be done, with the possibility of the dollar remaining low. This is something we must be conscious of, because Irish exports are up strongly in light of the strong dollar in recent times.

While most Opposition Members act responsibly, not all parties do. I have in mind the Labour Party in particular in saying this. If I was to be re-elected to this House in the next session and happened to be in Opposition, the one position I would seek is that of spokesman for committees to look into things. The spokesman for committees to look into things will be the busiest person in this House if we are in Opposition. Anytime one asks a Labour Member what he or she will do on specific issues, taxes or cuts one is told the party is going to set up a committee to look into it. Again, I am cognisant of the fact that in Government one cannot just say that a committee will be set up to look into something. One has to take responsible action, and I believe this Government-----