Although the so-called Celtic tiger period has been consigned to history by most commentators, its effects are clearly apparent. There is no doubt that over the past five to seven years there has been an irreversible transformation in the economy and, more importantly, in society. Ireland ten years ago and Ireland today are different countries. Despite a definite slowing up, this new transformed Ireland has put down deep roots. It is the duty of the Government to ensure these roots are nurtured and sustained in more challenging times.
There was no way – and it was even undesirable – for double digit growth to continue. The phenomenal growth of the economy in recent years has settled down, and because we have worked so hard to get the fundamentals right, we are in a strong and secure position. To have the resolve of being able to govern through more difficult times is the real test of good Government. These Estimates demonstrate clearly the strength of this resolve.
It is worth restating for the record – I am sure it will be repeated by many of my colleagues – how far we have come in the past six years. More than 400,000 new jobs have been created, with the ending of the massive emigration that blighted our country in the 1980s. Historically low levels of unemployment have been achieved, with long-term jobless figures being reduced by 80%. We have reduced our debt levels from 95% to 33% of gross national product – the second lowest in the EU, increased exports by 115% and brought living standards above and beyond those of our neighbours.
We have given people greater freedom to make their own choices by reducing the tax burden by almost €5 billion and have weighted this heavily in favour of the less well-off. Along with the most extensive measures at promoting social inclusion ever undertaken through record investment in health, education and social welfare, we have succeeded in removing almost 420,000 people from the tax net since our first budget in 1997.
These are real and lasting achievements which give us a strong platform from which the economy is well positioned to take full benefit of an improvement in the world economy. The Estimates will allow the Government not just to sustain the gains we have made but to build on them. Our focus remains on the greatest areas of priority. Health, education, social welfare and capital investment in infrastructure receive the largest increases. The bulk of the extra €1.9 billion will be spent in these areas because they are of greatest priority within the resources the Government has available to it. Social welfare will now receive €10.6 billion, health €10 billion, education €6.5 billion and infrastructure €5.5 billion. In simple terms, this is more money for pensions, hospitals, the employment of medical personnel, teachers, school building, third level research, roads, railways, transport and housing. All this comes on the back of sustained increases in recent years.
Although the Government has taken a more prudent approach to public spending, investment in the key areas continues. There is no doubt the direction is clearly forward. We must nurture and develop an environment which maintains quality employment, keeps inflation down and sustains competitiveness. The Book of Estimates will continue this momentum and I commend it to the House.
