Michael Lowry (Tipperary North, Independent)
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Question 201: To ask the Minister for Finance his views on the Economic and Social Research Institute's Quarterly Economic Commentary, Spring 2006; if he will commit to honouring the advice given by the ESRI regarding the additional inflationary pressure that a large pre-election increase in public spending would have on economic competitiveness; and if he will make a statement on the matter. [16990/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I welcome the latest ESRI Quarterly Economic Commentary, which was published in April 2006. The ESRI is forecasting economic growth this year of 4.8 per cent in GDP terms, and 5.1 per cent in GNP terms. Employment is forecast to increase by 3.4 per cent and unemployment is expected to average 4.4 per cent. These forecasts are broadly in line with my own Department's forecasts for 2006, which were published at Budget time. On Budget Day my Department forecast CPI inflation of 2.7 per cent in 2006, while the ESRI are currently forecasting a rate of 2.8 per cent. I share the ESRI's assessment on the need to contain inflationary pressures in the economy in order to improve competitiveness. In this regard, the planned budgetary policy stance is to continue with our prudent management of the public finances. We will keep the public finances in a sustainable position to ensure that room for manoeuvre exists to provide and enhance public services now and in the future.