Seanad debates

Friday, 28 January 2011

Finance Bill 2011: Second Stage

 

1:00 pm

Photo of Dan BoyleDan Boyle (Green Party)

The Finance Bill 2011 and the circumstances arising from it consist of two of very separate issues. The first is the need to pass the Bill to give a sense of certainty, cohesion and continuity to the very uncertain political and economic situation in which the country finds itself. The second relates to the contents of the Bill and it is here there can be legitimate public debate about the nature of the economy and how the burden is being shared between all our citizens.

We can describe the Finance Bill 2011 as probably the longest death wish in Irish political history. Unlike previous Finance Acts that were passed before the 2002 and 2007 elections, this is hardly an election Bill. When I think of those particular Acts and the budgets that accompanied them in 2001 and 2006, we can see how radically the situation has changed. Public expenditure increased by 20% in 2002 alone, which was far in excess of the rate of inflation. In 2006, public expenditure increased by 14%, which again was far in excess of the rate of inflation. These exercises were nothing less than the traditional attempt to buy the subsequent election. While we might concentrate on the banking mess that occurred since, the reality is that our biggest problem is our public finances and this has been caused by a decade or more of spending too much and taxing too little.

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