Today, 2 July, will see the production of probably the worst figures on our economy ever seen. I hold the Taoiseach responsible as the former Minister for Finance for presiding over this situation. He knew this would happen. He had the advice, he was given the warnings and he knew the signs. Can he outline one intervention that he made in the past six months to rectify the slide into which this economy is facing?

I am glad to report that last year the economy grew by 6% in GDP terms and over 4% in GNP terms——

That is history.

——which was during my time in office as Minister for Finance.

Then the Taoiseach blew it.

Is the Taoiseach blaming this on the Minister for Finance, Deputy Brian Lenihan?

The situation that is being portrayed by the Leader of the Opposition that these are the worst figures ever — I do not agree with that characterisation — fails to take into account the context that being an open economy we are affected by the international downturn the same as everyone else. We are in a far better position——

Spin.

If people will continue to talk down this economy to the point of hoping the prophecy comes true——

What about himself?

That is their purpose. That is not a responsible position to take.

Tell that to the 100,000——

We in this economy have the ability to weather this storm better than ever before.

There was no intervention.

We are in a position to do so because our overall public finance position has greatly improved since we have had ten of the last 11 budgets in surplus.

When one meets a downturn, as we are meeting it, the ability to accommodate that through deficit is possible but we must work within our framework. We must recognise that our responsibility during the course of the remainder of this year is to work within the agreed spending limits we have set ourselves and ensure that the corrective action we take is such that we can devise during the course of the Estimates campaign a strategy for 2009 and beyond.

It is important to point out that the ESRI, which has had the most pessimistic forecast for this year, makes the point that, while in the short term we face that challenge, it acknowledges the underlying strength of the economy, the ability to return to growth rates of 4% over the medium term once we get over this present difficulty.

Those are the facts of the situation in terms of the context in which we must operate, and to suggest that this economy has suddenly become a poor or bad economy overnight is not correct, is not an accurate assessment of the situation and is basically a consistent political charge which is not backed up by the facts.

They are taking no interventions.

That is the usual Fianna Fáil response, that if one mentions a challenge to the economy one is guilty of national sabotage. The Taoiseach has been at this for 18 months. He has been in charge of this economy for the past three years. He saw these signs. He stated that the ESRI produced a report. The ESRI also stated that he blew the boom. The ESRI pointed out that this Government has blown the boom. As Minister for Finance, the Taoiseach increased spending to a reckless point with no return for the taxpayer.

His Minister for Finance stated recently that it is his misfortune to arrive in the Department of Finance at this stage to clear up the mess left by his predecessor, who happens to be the Taoiseach.

Hear, hear.

Deputy Brian Lenihan has come in at a time where the construction industry has come to a shuddering halt. He must clean up the mess left by his predecessor.

The Taoiseach has arrived at a position today, on 2 July, where tax receipts have collapsed; where he is facing an €8 billion deficit; where unemployment is rising at the highest rate in Europe; where the cost of living is at the highest rate; where, unfortunately, our economy is winning the losers' league; and the Taoiseach has presided over that. His Minister for Finance has stated that he is now in the unfortunate position of having to clear up the mess — the first time, I might add, that Fianna Fáil has ever had to clean up its own mess.

Hear, hear.

What about the 1980s and the 1990s?

I will put it this way to the Taoiseach. If he will not accept any responsibility for the situation in which this economy finds itself, how can he with any credibility ask the people to believe that he can steer us out of this mess, which he has created and for which I hold him responsible?

Hear, hear.

I explained yesterday that I stand over the budgetary positions I took during my time as Minister for Finance——

That is the problem.

——as a member of this Government, consistently. There have been growth rates during those three years which have exceeded any other economy in Europe.

Negative equity for 100,000 people.

Deputy Kenny's portrayal of this economy as having been dysfunctional during my tenure is incorrect. The second point——

He is the manager.

I will answer the question now because Deputy Kenny made many assertions. He made many nonsensical assertions that need to be corrected.

Mis-manager, that is what the Taoiseach is.

Let the Taoiseach finish.

Deputy Kenny spoke about us cleaning up a mess. Compared to the term in office in the past when they doubled the debt, we have halved the debt.

Some 200,000 on the dole.

We have halved the debt. During the time of halving the debt we have seen unprecedented capital investment which has built up this economy. We have created a quarter of the total number of jobs created ever in the past ten years.

Pontius Pilate.

The Government has blown the boom.

Those are the facts. On this suggestion——

A shower of wasters.

——which is Deputy Kenny's problem, that this boom has been squandered——

It has.

——we have 2.2 million people working in this economy. I accept there is rising unemployment and there will be some more unemployment, but the fact of the matter is that the ESRI, which Deputy Kenny quotes selectively, also makes the point that the continuing investment that we are making in the capital programme is the right choice——

He blew the boom.

——that it builds up the capacity of the economy, and that the work that we have done in that area is the correct way of going forward, in terms of investment in science and technology and innovation, the national skills strategy, Transport 21, etc.

Look at their faces and call that savings.

That all has been good work that Deputy Kenny tries to denigrate.

The Minister for regrets is beside the Taoiseach.

That strategy is entirely correct.

Look at their faces.

They lost the election.

The Deputy can do all the shouting he likes now. That strategy has proven correct for this economy. In fact, the budget stance we have taken this year——

Look at their faces.

I have listened in silence to Deputy Kenny but he refuses to listen to me.

We must have silence.

That is his game the whole time.

Let the Taoiseach finish.

I am hearing him.

He is not. He is speaking while I am speaking.

Blame George Lee.

Please let the Taoiseach finish.

It is a sign of a weak argument, if one can not listen to what is being said. I listened to what Deputy Kenny stated.

What is the Taoiseach's——

It is not denial of the truth though, which is what the Taoiseach is doing.

The point is this, a budgetary strategy this year which provided a fiscal stimulus of 1.5% into this economy was the right stance given the outcome that we have now seen. We can take corrective action which is proportionate and allows this economy to withstand the challenges that are in front of us, but we will not do so——

It is called cutbacks.

The ESRI has not suggested that we should take such corrective action, as it would totally disrupt the provision of services for remainder of this year.

The Government blew the boom.

It was wasted.

I make that point because there is a contention by the Opposition that this is what the ESRI is saying, but in fact it is not saying that. What we will do——

Has the Taoiseach not been listening to George Lee?

We freely acknowledge that tax revenues will be down this year and the Exchequer returns for the first six months show this. We will work within the approved spending limits that we have set ourselves and we will ensure that we devise a budgetary strategy and carry out the Estimates process and the next budget in a way that will see this economy recover as soon as possible.

What about the cutbacks?

We will not defer the corrective action that is necessary now because we know from bitter experience under Administrations of which Deputy Kenny was a member that deferring corrective action only exacerbates the problem. The position of the Opposition is that it has a finance spokesman who says I spent too much, yet Deputy Kenny and everyone else say I spent too little. Fine Gael has policies that are meant to exacerbate the problem, not correct it.

The Government spent €15 million on advertising.

Bring in Eddie Hobbs.