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Dáil
‹ Ceisteanna—Questions Oral Answers - National Plan Objectives.

Building on Reality projections

Summary

Haughey challenges the plan’s projections for unemployment, public-service pay and the current budget deficit. The Taoiseach accepts that unemployment and pay exceed projections and says the deficit target will be marginally exceeded, while defending the Government’s reduction in the deficit against the previous administration’s record.

I also have a question down about targets in the document Building on Reality... I want to ask the Taoiseach specifically about some targets in that document. First there is the question of unemployment. The Taoiseach will recall that the document indicated that unemployment would peak at 220,000 at the end of 1984. Does he not now admit that that was totally unrealistic and that the unemployment projections are unattainable? Secondly, does he accept that the document which projected for 1986 a figure for public service pay of £2,525 million is no longer realistic or attainable? Thirdly, does he accept that we are in 1985, never mind 1986, heading for the greatest single largest budget deficit ever recorded in this country in terms of volume, size or amount and also in terms of percentage of GNP? So far as these critical areas are concerned, will he not admit that the document is totally out of line and should be withdrawn and something more realistic put in its place?

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With regard to being out of line, it is not as out of line as the previous Fianna Fáil plan which had to be abandoned.

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You must be joking.

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Deal with the document, Building on Reality.

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The Deputy does not like to be reminded of what happened to his document. I understand why because it is a sensitive issue.

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If the Taoiseach were as insulting to people outside the country who insult him as he is to me here——

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It is very difficult to deal with somebody who is so extraordinarily sensitive after all these years in political life. With regard to unemployment, I made it clear in my reply that the level of unemployment is higher than projected in the plan. With regard to public service pay, the pay award agreed last year has yielded a figure which is higher than that provided in the plan and there has been some offsetting of savings against that. The Deputy's third point was——?

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It was very important, dealing with the current budget deficit. I do not blame the Taoiseach for trying to forget it.

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The budget deficit is a significant fraction of that which was emerging when we took office first. The Deputy will recall, and he does not like to be reminded, that at that time the budget deficit was of the order of 13½ per cent of GNP until we took action in the 1981 and 1982 budgets. In the current year the target is 7.9 per cent but it will be marginally exceeded as a result of a shortfall of revenue and some excess expenditure.

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Would the Taoiseach acknowledge that, in these three critical areas, the document Building on Reality is no longer realistic? Furthermore, is he prepared to admit that in this year, 1985, he will preside over a current budget deficit which will be the largest in the history of this State, both in its amount and the percentage of GNP? Will he admit that fact?

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The deficit will be about two-fifths lower than the one the Deputy left us with, which is a considerable achievement.

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