Brian O'Shea (Waterford, Labour)
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Question 98: To ask the Minister for Finance his views on the International Monetary Fund's recent assertion that the economic distress currently facing Ireland is the most severe facing an advanced economy since World War II; the way he expects businesses and families here to be able to cope with the crisis and the reduced incomes it entails; the measures he will introduce to alleviate these financial pressures; and if he will make a statement on the matter. [27965/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The IMF is projecting that the Irish economy will contract by 13.5% between 2008 and 2010. This is of similar magnitude to the forecast made by my Department in the April supplementary budget. This is a very sharp rate of contraction in both international and historical terms. However, as I have pointed out before, the IMF report commends the Government for its actions to resolve the difficulties.

The Government is acutely aware that businesses, families and almost everyone in our society is being affected by the deterioration in economic conditions. What we are attempting to do is to ensure that the burden of adjustment is spread evenly. Income reductions – which are inevitable – must also be seen in the context of declining prices.

Improving competitiveness and safeguarding our pro-enterprise economy, putting our public finances and our banking system on a sustainable footing while returning to export-led growth are the appropriate policies and will ensure that we achieve sustainable increases in employment in the future. In this context, the Government's approach to dealing with the present significant economic downturn is to ensure that the economy is in a position to be able to take advantage of the global recovery when it emerges.