Brian Cowen (Laois-Offaly, Fianna Fail)

The indexation issue would be a strait-jacket for any Minister or Government and would take from their democratic responsibility to make choices for the good of the community, such as targeting those on the minimum wage in the last budget. It is about choices. I do not agree with the idea that the use of the CPI is almost like a formula across the board, following which one can do what one likes. My attitude is that one should make one's choices and defend them and not wait for unanimity, otherwise none of us would ever make a decision. I made my choices. I targeted where I targeted. Others, such as the Deputies opposite, can table amendments, and we can have an argument about it. I am not saying I am more correct than the Deputy but I have done my budget. This is the Finance Bill and I am not changing it now.

The average industrial wage has been raised many times. If the bands are not increased it moves up the marginal rates over time. Most people understand this, in the same way as a farmer understands that one has a good year and a bad year. If things are going well one gets on better whereas if things are going badly one cannot expect as much and one will not get on as well. We should stop telling the people that they can be assured from hereon that there will be incremental increased improvement in their life until the day they die and that there will be a tax regime that will keep them at this level. We are at this level now as a result of good strategy, a broad consistent macro-economic policy, by all governments despite efforts to suggest otherwise, some doing the job better than others, perhaps, but that is always a matter of political debate.

Let us not tell the people that this is the way it is going to be regardless. There are many things happening and we need to keep ahead of the posse and not become smug or complacent. There may be a time when some Minister has to made a decision in the event of an international downturn. We are an open economy and anything can happen in the next few years. Ministers have to come into this House and make some decisions which may not be popular. We have to make such decisions if we want to do our job and defend them. We should never underestimate the people's discernment or their ability to acknowledge what has been done. If that is what one has to do this year that is what one has to do. I do not buy the argument that there has to be improvements all the way regardless of what happens. I hope there will be improvements but nobody who understands how the economy works can be that certain and suggest the framework for the foreseeable future by, for example, locking in indexation. We should not do that.

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