asked the Minister for Finance if he will make a statement on the new initiatives, if any, which he has planned to stimulate the economy.
Written Answers. - Economic Initiatives.
74.
As I am sure the Deputy is aware, on 7 October 1988, the Government announced a series of measures designed specifically to give an additional impetus to growth in output and employment in certain key sectors of the economy. These measures will finance projects and provide the basis for further activity in areas already identified in the Programme for National Recovery including industry, tourism, forestry and fisheries. In addition, this package of measures will have a positive, though carefully limited, effect on consumer demand in the immediate future.
Collectively, the measures announced are intended to bring forward the employment potential of favourable trends in economic performance which have become increasingly evident in recent months. The strong growth in real GNP in 1987 and further positive growth this year is soundly based on a sustainable recovery in personal consumption, a broad expansion of industrial output and continued buoyancy in merchandise exports.
As is normal in an economic recovery phase, employment has been the last major indicator to show clear signs of an upturn. Accordingly, the preliminary results of the 1988 Labour Force Survey published last week, which confirmed the first significant increase in employment this decade, are particularly encouraging. Underlying these favourable developments is the substantial progress made towards achieving the programme's objectives in relation to the public finances. The end-September Exchequer returns indicate that for the second year in succession the Exchequer borrowing requirement should emerge lower than the budget target, without taking account of the additional tax revenues resulting from the special incentive.
The Estimates for 1989, published yesterday, show the Government's determination to achieve stabilisation of the national debt/GNP ratio during the period of the Programme for National Recovery. The public expenditure profile set out in the 1989 Estimates will consolidate the benefits of sound public finances, in terms of lower interest rates and investor confidence, which is the essential requirement for sustainable growth in output and employment.