As we head into budget 2013, the Taoiseach and his colleagues are slavishly following their austerity programme. Yesterday, the IMF admitted in its world economic outlook that it had underestimated the impact of austerity on our economy. The report stated the IMF had got it wrong by 200%. Every €100 taken out of the economy costs up to €150. In next month’s budget, the Taoiseach intends to take €3.5 billion out of the economy again which, according to the IMF, could cost up to €5.2 billion. It is in this context that Ireland had the second highest austerity measures in the world in 2010, only beaten to the record by Greece.

Yet, the Taoiseach proudly claims he has the country on the path to recovery and his Ministers claim austerity will help us regain our economic sovereignty. How can he seriously tell the House this is correct policy? The mix of austerity prescribed for us is two thirds cuts with one third taxation. We have seen what the cuts mean with the cutting of disability allowance for those under 18 being floated again, along with more savage attacks being considered in the budget. Will the Taoiseach consider rebalancing the ratio of cuts to taxation in the budget so as to ease the burden on the vulnerable in society? Will he ask his masters in the so-called troika to admit they got it wrong and stop these austerity budgets? I have no doubt the Taoiseach will claim the IMF expects growth next year of 1.4%. With planned austerity we will actually need to grow by over 4% to just recover what the Government will cut in December. Will he explain to the House why this is the right policy?

That was a good Second Stage speech. I hope that following his last intervention in the Chamber that he has paid his household charge in Donegal.

Come off it. The Taoiseach is wasting our time.

Did Deputy Higgins pay his?

As Deputy Pringle pointed out then, those who can pay more should pay. I expect him to confirm his contribution to providing services for the people in his native county.

It is not going for services but to pay the troika.

And speculators.

We had a discussion on that yesterday with the People Before Profit and I am glad Deputy Boyd Barrett has quietened them.

The Taoiseach was entirely disingenuous then.

The IMF report is a global report and points out one of the few bright spots in global performance has been that of Ireland.

Our growth rate was 1.4% and it is expected to go beyond that next year. Clearly there are challenging economic circumstances internationally in terms of the superpowers of the United States and China and many other countries and we are well aware of it. For the Government's part, we have agreed a position with the troika, which funds the country, to set out on a programme, which we have renegotiated in part for very good reasons, and to adhere to that programme. Since the people in Ireland made their decision so clearly in respect of the fiscal stability treaty, the National Treasury Management Agency was able to go back into the bond markets with great interest being expressed in the offerings made at that time.

A selective interpretation.

This shows that international recognition of Ireland making headway in a steady fashion in challenging times is very clear and this is why the foreign direct investment line here continues to be strong.

The magazine was sold out in Castlebar.

Deputy Billy Kelleher can keep his smart comments. He can throw his hands up and walk out if he wishes.

Thank you very much.

There is histrionics and that kind of carry-on.

The Taoiseach should have a sense of humour.

Deputy Pringle should note that we have signed on for a programme under a memorandum of understanding, which we have renegotiated. We are adhering to it. The troika's next visit is due. We have had seven assessments of our country's performance and they have all been positive. They are challenging and I commend the people on understanding that there are challenging times ahead but that the prospect of emerging from the bailout brings with it the opportunity for real growth and a restoration of Ireland's economic sovereignty.

This is why the Government has set it ceilings for the next number of years in terms of spending and we will adhere to these. We will have the effective management of the running of the country changed in a way for the benefit of the people. Everyone understands that these are not easy times but decisions such as yesterday's decision by the Kerry Group represent a vote of exceptional confidence in the country's future and its people. The foreign direct investment line here continues to be strong.

The budget for 2013 will be challenging. We do not intend to change the ratios or figures we have already set out. We intend to make decisions to give effect to them. Deputy Pringle will have an opportunity during the economic debate to make his contribution on what he believes would be feasible and constructive in the interests of all our people.

I would almost consider paying the household tax if it meant the Taoiseach could come up with a better line during Leaders' Questions.

Perhaps Deputy Pringle will give up his Independent leader's allowance.

What about Deputy Kehoe's leader's allowance? Will he give that up?

Would you mind, please? Thank you.

The total is €4.5 million. Did Deputy Kehoe vouch all of it?

Will the comics stay quiet, please, while Deputy Pringle asks a supplementary question?

Deputy Kehoe is staying quiet now.

Deputy Pringle knows what he has to do.

Deputy Kehoe should tell us about the €4.5 million. He should tell us what he does with it.

Deputy Pringle, please proceed.

The Taoiseach has confirmed that there will be no change in the austerity policies of his Government. He noted the troika will be here again next week. If the Taoiseach seeks to review the programme I imagine he will be pushing an open door now that the IMF agrees with the Members on this side of the House that austerity is not working. The Taoiseach constantly points to foreign direct investment and the investment multinationals are making in our economy. That is holding up, but it is not solving the emigration crisis or the crisis of poor people and people depending on social welfare, including low income couples and other people who are suffering. The Government's policies continue to make this worse. They will continue to ensure more than 80,000 people emigrate from the country every year. These are the people the Government should be targeting in the budget. The Government should negotiate with the troika and get the IMF to agree that our budget burden should be eased and I call on the Taoiseach to do this.

I look forward to the economic debate and I look forward to putting forward my ideas but I have no doubt they will fall on deaf ears on that side of the House.

I look forward to Deputy Pringle's contributions. He is in a position to lead by example. If he paid his charge the level of service provided by local authorities would be all the better. When he goes around the housing estates in Killybegs and out through Ardara and wherever else he holds his clinics, he can say to people that the reason the local authority is unable to provide all the services they need is that people like Deputy Pringle have not bothered to pay their household charge when they can well afford to do so.

It is because the Taoiseach has slashed the budgets of local authorities.

The position is that the IMF publishes its report on a regular basis. This is a global report and it refers to many countries, one of which is Ireland. The report pointed out that Ireland is making steady progress in challenging times. We are in a programme, as Deputy Pringle is well aware, funded by the IMF, the Commission and the European Central Bank. We have had assessments of that programme on seven occasions. The country has met all its targets.

That is according to Time magazine.

It is necessary that we continue to do so to restore our economic sovereignty and to have growth again in our economy. I hope we can get a conclusion to the decision of 29 June in respect of the bank debt and sustainability and that we can retrieve a decision in respect of the promissory note and the wreckage left behind by the previous Administration.

I thought the Taoiseach got that already.

Anyway, no one is going to walk in and write a cheque for €11 billion for us. We have to rectify that problem ourselves. That is a challenge for the Government and it will not be easy. I look forward to Deputy Pringle's contribution when the economic debate takes place. Let us see what he has to say and how he can back it up.