John Gilroy (Labour) | Oireachtas source

It was the former leader of the Senator's party who coined the phrase and called it "boomier". The boom was going to get boomier.

Having spoken for a moment on our previous Government's role in fiscal irresponsibility, we should now talk about fiscal responsibility, which is what the economic statement is about. Jobs are the only show in town if we are to allow people feel the real benefits of the recovery. It is important that real people feel real benefits and that the recovery is not just seen at a macro level. We can point to the macro figures, which are all very good, but we do need to see ordinary, hard working people enjoying the benefits of it.

As a measure of what we have been doing, in 2012 unemployment in this country was at 14.8%. The figure is now down to 10% and it is anticipated that it will decrease to 9% by the end of the year. We will be heading back towards figures of 4% or 5% unemployment, which is considered to be full employment, before 2020. Those figures are real and realistic. It was said several times during the course of this Government by the Opposition that things could not be done. The Minister of State referred to when the Opposition said that not one ounce of change could be negotiated in the troika bailout. We have proven significantly good at that and the Minister of State's figure of €40 billion in future cash flow improvements is evidence of it. That is real money which would have to be found elsewhere otherwise. Not only would we have to find it but the opportunity cost of the loss of that money would be equally damaging to our society.

Just this month we have spoken about 45,000 fewer claimants of social welfare between this year and last year. That is a good figure, although it still is not good enough. When we came into Government, the live register figures were heading well above 450,000. I remember discussions at the time about it heading for 500,000. That would have been an absolute disaster and we probably would not have had the ability to recover from such a vicious cycle. The figure at the end of last month was 349,551. This represents a success, but not a success for our Government but a success for everyone who has got a job and for everyone who has come off social welfare payments. This is where the real success lies.

The fiscal responsibility measures about which we are talking include planning. Senator Ó Domhnaill will agree that planning for the future is almost a new concept as far as his party is concerned. An increasing population requires us to do that in a sustainable way. The spring economic statement puts in place the broad parameters of what that plan might look like. The Senator said that there was no meat or substance in it. Of course, the meat and substance will be added in the budget later on in the year. At the moment, we are starting the process by which people and politicians can engage and outline their own plans and visions for the future.

On the issue of irresponsibility again, Sinn Féin had its recent 212 word policy document on the abolition of Irish Water. There was no reference to the fact that if Sinn Féin abolished Irish Water, €900 million would have to be found for investment on an annual basis in Irish water. That would seriously curtail any Government's ability to reform the taxation superstructure in the country.

We are talking about reducing the universal social charge. The Government has already taken more than 400,000 people from the USC net. A person can earn €32,000 a year and then rapidly move into paying 51% of his or her entire income back to the State after that point. The entry level to the highest rate of tax is way too low and needs to be examined in light of the extra resources the Government has. The Minister for Public Expenditure and Reform, Deputy Howlin, referred to these extra resources as an economic dividend to the people of Ireland for the undoubted sacrifice they have made. Reducing a deficit from €15 billion a year to €4.8 billion this year and smaller again next year is a remarkable feat. Again, this is not a pat on the back for the Government but a recognition of the sacrifice of the Irish people. The deficit was reduced by way of a combination of revenue raising measures and decreasing expenditure.

Undoubtedly, during that time, people have suffered and struggled. We have seen it. We are not immune to looking at the difficulty people have found themselves in. That is why this year, at last, after eight austerity budgets, we might be able to put a few pound back in people's pockets. At the end of the day, that is really what the entire measure of an economy and a successful society should be. The way to do that is to plan. The spring economic statement outlines the broad parameters of that plan. We look forward to engaging in robust debate with politicians, from all parties and none, and to seeing the budget and how the Government will put flesh on the bones of this plan.