Martin Ferris (Kerry North, Sinn Fein)
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Question 34: To ask the Tánaiste and Minister for Finance his views on whether the failure to address the fact that for the past five years economic growth was driven by domestic consumption rather than by exports is partly to blame for the current economic situation and that if steps had been taken to address this matter at an early stage the prospects for the Irish economy would be better than they now are. [15347/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In recent years, domestic demand was the main driver of growth, in part due to very high levels of residential construction. The high level of completions in this sector over the period was necessary in order to ensure more modest house price inflation by achieving a greater balance between housing demand and supply. I would also point out that higher levels of completions also resulted in substantial employment growth over the period. Notwithstanding these developments, the Government recognises that, in a small open economy such as Ireland's, it is imperative that sustainable export growth is achieved. Such growth can only be realised through ensuring that our economy remains competitive.

In this regard, this Government has been pursuing, and will continue to pursue, a number of policies which will underpin the future competitiveness and growth of our economy, including a firm commitment to responsible budgetary policies. This Government has implemented policies which are aimed at rewarding both work and enterprise through maintaining a low tax burden on capital and labour. Furthermore, the continued roll-out of the National Development Plan (NDP) remains key. The investment in capital provided for in the NDP is helping to eliminate infrastructural bottlenecks which hinder economic efficiency and is also enhancing productivity.