John Gerard Hanafin (Fianna Fail)

I support the Appropriation Bill. The Minister has achieved the balance needed. With all the evidence provided to us, we can see we have turned the corner. We have expended less than we suggested at the beginning of the year. Our income is higher than we expected but, more important, the CSO figures indicate there was growth in the economy in the third quarter of this year. The reason for that growth is exports.

I mention those of us who gave voice to the view that our situation was unique and different from that in Greece, Italy, Spain or Portugal and that Ireland was the most globalised economy in the world, bar the Hong Kong special administrative region or Singapore. In the bad times, we were like a cork on the ocean. Now that world economies are expected to grow by 4.5% this year and 4.5% in 2011, we are beginning to see a turnaround as this economy has placed itself at the forefront in the world.

We took significant sums out of the economy in the past two years - €15 billion - and we will take a further €6 billion out next year, but we are still looking at growth of 1.7% next year. It shows that the policies of this Government and previous Governments to preserve and protect our 12.5% corporation tax rate have been essential, as has an outward looking policy of looking for foreign direct investment and sending people to the European and Far Eastern markets to bring business to our shores. They have done that very successfully and the Minister alluded to all the companies setting up in Ireland. We are at the forefront again.

Will the Minister continue research and development expenditure? There are areas in which we could again specialise, including biotechnology and stem cell research. I point out to the Minister that adult stem cells are beginning to bring the only advances in this area. Ireland has another unique opportunity in this regard.

Israel spends large sums of money on research and development and its economy has increased significantly. Large numbers of people have gone to Israel in recent years and the population has risen from 5 million to 7 million in a very short space of time.

It looks as if we have finally achieved what we set out to do. It looks as if 2011 will be a very good year for Ireland. It will be a good year because we can see we have turned that corner the Minister promised we would turn.

The fact there are intercity motorways is very welcome and 2010 should see the finalisation of that project. We are all dressed up and ready to go. There are other areas in which we need investment and in which we can bring forward policies which will assist us in the future, including access to broadband. There is a plan to include all remaining areas because that will be essential in the future.

Looking at the budgetary packages for the coming year, one of the best items the Minister introduced was the reduction in stamp duty on houses. Given our high dependence on the housing market in the past, it did not make sense to charge 6% stamp duty when a low rate or no rate would have given a floor to that market and the necessary security, which the Minister achieved in the budget.

It was undoubtedly a fair budget, which is what the Minister set out to achieve. The appropriations for next year will bear that out. We hope we will continue to see less expenditure and extra value for the expenditure the Government makes. We have achieved great savings. The construction industry is competing with lower tenders, of which it is well capable, and we have achieved great results. During the good years, we achieved a very high standard of housing.

Whether we are prepared to recognise it or not, despite having 400,000 unemployed, there are 1.8 million people at work. Despite the fact we took €8 from certain social welfare payments, ours are among the highest social welfare payments in Europe. We started from an exceptionally high base. Money needed to be taken out of the economy and people gave a bit according to the amount they could afford. That was an important achievement the Minister managed in the budget. I support the Appropriation Bill 2010.