The Taoiseach and the Government gave specific commitments to the Irish people some months ago. A number of documents have been published relevant to the conduct of the affairs of the nation – the Fianna Fáil manifesto, the health strategy and the national development programme. Commitments given by the Taoiseach have not been honoured at home and international commitments in terms of Ireland's overseas aid have not been honoured. What the Taoiseach and individual Ministers say on behalf of Government are completely irrelevant, they do not mean anything.

In the context of commitments given, 200,000 people who had expected to be given medical cards are now severely disappointed; 25,000 people on waiting lists had expected those lists to be eliminated; and thousands of young people have had their dream and aspiration of house ownership shattered because of the withdrawal and abolition of the first-time house buyer's grant. Does the Taoiseach accept that he is undermining the democratic system and debasing politics by making statements, giving commitments and making promises that are clearly nothing but a web of deception? The people have been deceived to a point where Fianna Fáil and the Progressive Democrats are back in Government, the financial situation and management of the country is in a complete shambles and people are frustrated, disappointed and angry at what has happened and by statements coming from the Taoiseach and his Ministers. Even at this late stage, will the Taoiseach reverse what has been his latest cynical and cruel announcement in the Book of Estimates last Thursday, to do down many of the commitments he gave in the past six months?

The circumstances and the setting for the publication of the Book of Estimates last week were entirely different to recent years. We have watched the decline in economic activity and growth through last year and into this year. I have put those figures and statistics before the House on many occasions and I am sure there is no need to repeat them. World economic growth has slowed markedly this year and the outlook for next year is not very different. The latest consensus forecast for this year from the Department of Finance and the Central Bank is moving towards 2% of GNP.

The first priority of the Government in dealing with the Book of Estimates was to get back to a sustainable rate of spending. This does not mean a reduction in absolute levels of spending, nor does it mean low levels of spending. Spending has risen by 40% in the past two years, so we are working from a high base. The Book of Estimates this year is low and it has to be because our revenue base has decreased – it is down to 3% whereas we predicted 8.5%. Over recent years revenue has exceeded expectations.

We cannot spend what is not there. If I was doing that the Deputy, rightly, would criticise me strongly, no matter how desirable the objective of the spending. We can all agree on certain priorities, and the Government has set out its priorities. We are continuing to put in resources. Spending next year will be over €31 billion, compared to €17 billion five years ago. We are putting this money into health, social and family affairs and education. Health spending is up 7% on a year-on-year basis, up €520 million on 2002 and up €4.9 billion, or 141%, on five years ago. Spending on social and family affairs is up nearly €300 million, or 3%, on 2002 and up €4 billion, or 70%, on 1997. Spending on education is up nearly €300 million, or 6%, on 2002, and €2.1 billion, or 71%, on five years ago. It is on a very high base.

Of course it would be very nice if increases in income matched some of these spending increases, then we would have no difficulty. The Government would be able to give large increases, although we have been criticised strongly by Deputy Kenny and everybody else for high increases in spending this year as we try to get back to the 14% level.

Deputy Kenny mentioned a number of areas and I will respond to the one directly related to a comment I made about overseas development aid, ODA. The allocation in the Abridged Estimates volume for the Ireland Aid programme next year is €373 million. It represents an increase of €33 million, almost 10% over the final allocation for 2002, so it is a very high increase in a difficult area. This demonstrates our commitment to the aid programme even in very difficult financial circumstances, and I know that is acknowledged by many of the groups involved in this area.

Arising from that, is it likely we will see padlocks on hospital wards next year? Does the Taoiseach not agree that the number of houses going to first-time buyers is down 20% on what it used to be? Does he not accept that democracy is based on trust and that where a Government abuses the trust of its people by not honouring its commitments, it debases the entire democratic system? Arising from the publication of the Book of Estimates last week, is it not now a fact that the three documents before me – the national development plan, the health strategy and Fianna Fáil's A Lot Done, More to Do – are now in shreds and are as completely and utterly irrelevant as the comments being made by the Government?

They are on the best-seller fiction list for Christmas.

The capital programme next year is €5.3 billion, which again represents an enormous increase and it puts us well ahead of most other countries of our size. The Minister for Health and Children has announced an increase of €694 million in health spending next year. This is an enormous increase, 154%. He outlined last week details of the health strategy. The extra money provides funding for bed capacity, the treatment purchase fund, the waiting lists initiative, cancer services, acute hospital services, the cardiovascular strategy—

What about the 200,000 medical cards?

—renal and cardiac surgery, compensation payments to people infected with hepatitis C or HIV, services for older people, disability services, mental health services, adult homelessness and child care services plus an increase of €230 million in the GMS.

Are the Government backbenchers too embarrassed to come into the House following the Book of Estimates? In respect of the Book of Estimates, which of the cuts embarrass the Taoiseach most? Is it the refusal to raise the eligibility for medical cards and keep his promise to give 200,000 additional people a medical card, his failure to agree the refurbishment programme for dilapidated and run down primary schools, the scrapping of 5,000 jobs on the community employment scheme, the abolition of 41% support for FÁS and a similar cut in the IDA Ireland budget, the postponement of Luas for 12 months, the fact that he has not provided one single cent for the 2,000 additional gardaí as promised in the programme for Government, the 1,000 jobs that are being lost in rural Ireland because of the cuts enforced on the forestry programme, the 63% cut in spending on race relations or the further cuts in the ODA programme which make the target of 0.7% by 2007 as committed by the Government simply unattainable? Is the Taoiseach embarrassed because his backbenchers are in revolt or is it because he has cut the first-time buyers' grant, shattering the dreams of thousands of young people all over the country who are trying to get a home of their own? Which of these cuts embarrass the Taoiseach most?

What worries me most is that the 600,000 jobs the Government has managed to create through its fiscal policies over recent years be maintained, that people still have a quality of life that would enable them to keep working and have disposable income so that they can continue to play a real part in this country and not go back to the situation we had before of 17% unemployment and high emigration. What would worry me most is if we were to do irresponsible things now—

The Government did that in the past two years.

—we would not be able to return to the circumstances of high growth, where we have been able to build 50,000 new houses a year.

We would have to move away from a position where we were building new houses in large numbers and go back to the 1977 position when only about 10 or 11 new houses a year were built. We would have to go back to a position where we are unable to spend adequate money on the health services—

It is adequate now, is it?

I would not like to see a position where we could not afford to spend €8.9 billion on health, which is a 147% increase on 1997 or where we could not afford the large increases by the Department of Family and Social Affairs for those who are on the margins of society. We have been able to give them large increases of 70%. In education we are spending €5.6 billion.

It is a difficult year, we know that, and we have to try to make the necessary prudent policies so that we can work ourselves through it and be able to maintain economic growth and stability and, in the meantime, help those who need it most. That is what the Government will do.

Rather than a recitation of the benefits of the growth which the Government did not create, what action does the Taoiseach propose to take for the thousands of people in rural Ireland who have no other means of employment and are being thrown out of work as a result of the Book of Estimates? What about the 5,000 people that the Tánaiste has thrown out of work and abandoned in the most vulnerable and exposed communities in the country? Then there is the people on very modest incomes who will not get a medical card.

Does the Taoiseach accept this is the exact opposite of what he promised during the recent general election? Does he accept that he and his Government lied to the people at the time of the general election, or is he saying that he is lying to them now, or that he does not know the difference?

It is not appropriate to use the word "lie".

It is the truth.

I remind Deputy Rabbitte that afforestation has increased 251% in the past five years.

It is next year we are talking about.

We will see the employment that will create in rural Ireland.

What about the companies that have invested this year? More than 1,000 jobs will be lost.

There are a great number of trees in north Dublin – the Taoiseach was up a few of them.

Allow the Taoiseach to continue without interruption.

In so far as there is an argument about what figures were used, Deputy Rabbitte will know that the figures for deficits that his party put in for 2003 and those that Fine Gael put in were almost precisely the same figures as we put in.

Based on false figures given by the Taoiseach.

The Fine Gael plan was to spend more, tax more and save more so let us not—

The Taoiseach never told us that the EU told him that he could not use central fund moneys.

Allow the Taoiseach to continue without interruption.

In reply to Deputy Rabbitte's question, we are endeavouring to manage in difficult circumstances not to spend ourselves into a position where we will create a long-term crisis.

As the previous Government did before the election.

If we can manage until 2003, or maybe 2004 if necessary, to keep a prudent, tight fiscal position, we can keep much employment in this economy and spend the available resources in the areas of education, health and social, community and family affairs. That is our view.

What if there is an election in the meantime?