Dáil Éireann Debate, Tuesday - 29 September 2015
141. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains confident that economic progress is set to continue over the next five years, with particular reference to the encouragement of a well-balanced and integrated economy spread evenly throughout the country; and if he will make a statement on the matter. [32882/15]
View answerIn the Spring Economic Statement, published in April of this year, my Department forecast that the economy would grow by 4 per cent in 2015 and 3.8 per cent in 2016. On the basis of strong quarterly national account results for the first and second quarters of this year, these projections will be revised upwards in the macroeconomic forecasts which will be published with the Budget in mid-October. Importantly, economic growth is now better balanced with exports and domestic demand set to make a strong positive contribution to growth, with growing employment and rising household incomes resulting in an increase in private consumption the sacrifices made are now paying dividends.
Over the medium term, my Department expects that the economy can grow by around 3 per cent per annum on a sustainable basis. Achieving these growth rates is contingent upon many factors including trading partner growth and continued improvements in competitiveness.
As set out in the Spring Economic Statement, the Government is using all policy instruments available to build sustainable public finances, improve access to credit and reform the income tax system. A carefully targeted capital investment plan will be used to alleviate supply side bottlenecks and barriers to growth. The Ireland Strategic Investment Fund and the Strategic Banking Corporation of Ireland will also contribute in this regard. We have laid the foundations for a solid recovery with strong gains in our international competitiveness. We are also stimulating employment growth through the Action Plan for Jobs and ensuring that as many of those jobs as possible are filled by the unemployed though the Pathways to Work programme which provides work experience , education and training for the jobs of tomorrow.
We can now clearly see an economy that is moving up a gear but I am conscious that economic recovery has not filtered through to all. The recently announced Village and Town Renewal Scheme is being introduced as part of a concerted effort to support the development and revitalisation of an integrated economy spread evenly throughout the country. A budget of €30m over 5 years from 2016 is a component of a broader approach to rural development but also to improve the environment of rural dwellers in a way that will increase their quality of life and simultaneously support potential economic activity in their area.
In summary, I am confident that significant economic progress can be made in the years ahead. But crucially, this is contingent upon implementing appropriate polices. That is what the Government intends to do.
