Today we have seen the publication of the ESRI report on the economy, which illustrates the appalling economic catastrophe the country is now suffering. Its figures show that 300,000 jobs will be lost between this year and next. The economic decline forecast for Ireland is twice as bad as in any of our competitor countries and the rise in unemployment is also twice as bad as any of our competitor countries. This underlines once again that the vast majority of the difficulties faced in this country are the result of the policies over which the Taoiseach, as Minister for Finance, presided in recent years. It is a damning indictment of policy in this country, showing policy failure by policy makers, by regulators and by the property sector.

The tragedy is that the Government is persisting with policies that will not address these challenges. It contemptuously ignored warnings as they were delivered to it, and now Ireland stands alone as the only country that is attempting to deal with these catastrophic times by raising taxes and cutting investment. This is not a strategy that can address our problems. The recent budget showed a Government that is not willing to face up to the reform agenda this country needs. It showed a Government that is turning to ordinary people to pay for mistakes in policy. The central drive of the recent budget was to heap extra taxes on ordinary workers.

This coming Friday, 1 May, which is International Workers Day, will see a single person on the average industrial wage in Ireland pay tax at 51%. How can the Government think this is a strategy for recovery? The Government is bereft of a strategy for job protection or job creation. What are the figures we will hear later today for the latest month's increase in unemployment? This is a barometer which measures the extent to which we are destroying ordinary lives. I ask the Taoiseach what level of increase we have suffered in the last month.

I do not accept many of the points in the question put by the Deputy. Of course we are facing a difficult situation, and we have budgeted for a contraction of 7.7% in the economy. The figure according to the ESRI is 8.3%, although it is more optimistic about next year than we have budgeted for. There is no question that we are in difficult times. I am glad to see the ESRI shares the short-term analysis put forward by the Government. It acknowledges that the measures taken to ensure the sustainability of the public finances are appropriate. We have taken measures to maintain the public finances on a sustainable path and I am pleased the ESRI recognises this. There is obviously a difficult but important balance to achieve in terms of ensuring sustainability in our public finances while avoiding further contraction of the economy. However, it acknowledges the need to ensure sustainability in the public finances, and the corrective action we took in the budgets was necessary if we are to have the prospect of growth in the mid-term. Not to take these actions would defer the return of growth. It is important to acknowledge that this is also part of the ESRI's analysis.

I do not for one moment underestimate the impact of such a contraction on employment. The countries that are most affected by the current global crisis are small, open economies. The Asian tiger economies have been hit to the same extent as we have. To answer the Deputy's question, the live register total for the week ending 17 April 2009 will be 384,113. Within the constraints of the public finances, we are doing everything we can to help people who are losing their jobs. That is also part of the social partnership talks that are taking place at the moment.

These statistics, as the Taoiseach knows, reveal that the unemployment figure in the first four months of the year — up to 17 April — has risen by 94,000. That is on top of an increase of 120,000 in 2008. It is rising twice as fast for young workers as for older workers. Behind those statistics dwell some grim facts — business people seeing their lives' work destroyed as they have had to close their doors; and families terrified that their jobs will be the next to go as the ESRI tells us that another 300,000 are to be added to the total. That would put unemployment levels above 600,000. These are appalling figures.

People's confidence is sapped because they see a Government without any strategy for employment. What is the Government's strategy? The Taoiseach may say that Fine Gael's strategy does not have all the answers. However, we have set out clearly a major investment in the infrastructures that are needed for the future and which will not cost the Exchequer a red cent because it will soak up investment that is out there looking for a home, money that needs a home and which can transform our economy instead of lying wasted in international shares. We have proposed a reduction in PRSI for those who are expanding employment. We have proposed a cut in VAT to give a break to people, particularly in labour intensive service areas, who are trying to get things going again. We have suggested small business loans to target the businesses that are struggling the most. The Taoiseach may say these are not the correct options, but what is the Government's strategy?

Consider the situation in the countries with which we are competing. In the United Kingdom, for example, the Government is reducing tax burdens for small businesses and giving VAT breaks. Canada is introducing accelerated tax allowances to encourage private investment. The United States Government has a major infrastructural investment in the green economy. Every economy has a strategy based on protecting jobs and defending employment. Where is the Government's strategy? What we saw in the recent budget was the very opposite, offering a blinkered view of the world. The Taoiseach and his Government are smarting from criticism from their backbenchers that they are out of touch and paralysed, that they are unaware of what businesses need, are not responding to that need, and that a cosy circle is dictating policy. This is nothing to the fury the Government will encounter from ordinary people who are seeing their life prospects and those of their children going up in smoke.

We need a comprehensive strategy that has reform and job protection at its heart. The Government is yet to produce that, but it is what the country is crying out for. People are already saying that the Government, which brought us into this, cannot lead us out of it. The Green Party is saying that in regard to the banking sector. More and more people are now saying it about the Government.

I do not accept what Deputy Bruton has to say.

That is the problem.

A strategy and plan are in place, as outlined in the budget.

Would Deputy McGuinness agree with that?

What we have had from the Deputy's leader is the prospect of addressing a redesign of the tax system without increasing income tax, which has no credibility whatsoever.

What is the Government's jobs strategy?

In regard to our jobs strategy, first, as a prerequisite to economic recovery, we must get our public finances into order. Second, we have increased the number of placement schemes available for people who are out of work. Third, we are trying to ensure reductions in costs. We are already seeing such reductions, as well as improvements in competitiveness in terms of a reduction in wage costs.

That is no thanks to the Government.

People in the private sector are taking decisions in order to maintain employment in the more difficult environment in which they now operate. That is happening throughout the economy.

What is the Government doing to protect jobs?

The Opposition seeks to contend that in the short term, there is a way to mid-term growth without making a change in regard to our public finance position. We have to take the corrective action currently being taken. Everyone knows that, but the Opposition is not prepared to accept it.

It is the Government that will not accept reality.

The Opposition is trying to suggest there is some other, painless way forward. We will do everything we can to bring the economy through these difficulties.

The Government has ducked reform in the public service and reform of the energy sector. It has ducked everything.

Reform in the public service is ongoing in regard to control of numbers and providing opportunities for employees to leave in a planned and regulated way. We are also seeking to implement the reforms outlined in the task force report on procurement and a range of other issues. All these initiatives are in place and were discussed here yesterday.

Is that all the Taoiseach has to say about job creation?

The suggestion from the Fine Gael Party that there is a way of moving on without the necessity to provide for an increase in taxation is simply dishonest.

We did not say that.

The party's health spokesman said at the weekend that we have not reduced public expenditure sufficiently. In what areas in health, education and social welfare has expenditure not been reduced sufficiently? It is time for Fine Gael to come forward. We have set out our position in the budget. We have indicated where the tax and expenditure changes for next year and the year after will have to be made and the size of those cuts. We have heard nothing from Fine Gael in this respect.