Róisín Shortall (Dublin North West, Labour)
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Question 76: To ask the Minister for Finance the progress made to date with regard to the implementation of the 12 point programme to improve value for money in public spending, announced by him on 20 October 2005; and if he will make a statement on the matter. [7865/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As I indicated in my reply to Questions Nos. 303 and 304 on 21 February, I wrote to my ministerial colleagues on 20 October last enclosing a copy of my address of the same date to the Dublin Chamber of Commerce and requesting them to ensure that their Departments take all necessary steps to implement measures set out in my address.

My Department has since issued a circular letter to all Departments on 25 January last outlining in detail the requirements to give effect to the measures in my 20 October address as well as decisions made by Government in relation to ICT and consultancy procurement. I have arranged for copies of this circular letter to be placed in the library of the House. The Financial Regulator has already drawn attention to the need for consumers to choose the right type of loan for their needs. The Financial Regulator, with its statutory consumer mandate, has developed a number of specific initiatives to help consumers make informed choices in terms of the financial products they choose, the amount of risk they take on and the cost of financial products. These initiatives have been developed through the framework of the Financial Regulator's "It's Your Money" campaign and have involved publishing consumer guides on credit products, fact sheets, cost surveys on personal loans, all of which are intended to assist borrowers in making the most appropriate credit decisions given their circumstances.

While the level of indebtedness of Irish households has been increasing, the Central Bank's most recently published financial stability report concludes that a range of fundamental factors such as growing employment and incomes, falling inflation and low interest rates have supported the pattern of mortgage growth and associated debt levels in the economy. The report does, however, emphasise the importance of responsible behaviour by both borrowers and lenders to factor into their financial decision-making the prospective impact of potential changes in the future economic environment.

I share the Central Bank's assessment of the importance of maintaining financial and economic stability. In that regard, for my part I intend maintaining a responsible approach to maintaining stability in our public finances, which will ensure that the strategic direction of our economy will focus on sustainable real improvements in public services, social provision and infrastructure.

As far as overall economic and financial stability is concerned, the relevant measure of credit encompasses both public and private sector credit and debt levels. The Minister for Finance has a key role in this regard in ensuring prudent management of the budget and overall sustainability in the public finances. In this context, Ireland's fiscal performance is among the best in the developed world with government indebtedness the second-lowest in the euro area. Responsible budgetary policy has made a significant contribution to economic performance overall, to the maintenance of low unemployment and to the achievement of record employment levels.