Enda Kenny (Mayo, Fine Gael)

The Fianna Fáil election manifesto, which formed the basis for the programme for Government, included tax and spending promises of approximately €7.1 billion. The pre-budget outlook published by the Department of Finance forecasts that there will be a shortfall in tax receipts of €4.9 billion, when compared with the forecast made by Fianna Fáil, by 2010. While the projections do not extend beyond 2010, it is reasonable to expect on the basis of Fianna Fáil's assumptions as far as 2011 and 2012 that there will be a shortfall in tax receipts of €5.7 billion, when compared with the Fianna Fáil manifesto, by 2012. Does the Taoiseach accept, on the basis of the assumptions of Fianna Fáil and the projections of the Department of Finance, that the Government will not be able to deliver on the programme for Government while also keeping its promise to keep the public finances in balance or in surplus? If that cannot be done, the Government will have to decide between keeping the public finances in balance or in surplus and keeping some of the other promises in the programme for Government, such as employing an additional 4,000 teachers, 2,000 gardaí and 2,000 hospital consultants. Will the Government be able to increase the old age pension to €300 per week, as I expect it to do? Will it keep its promise of spending €512 million on overseas development aid? Will it reduce the top rate of tax to 40% and the standard rate to 18%, as promised? Will it reform PRSI, as it has committed to do? These are fundamental issues. Does the Taoiseach accept, on the basis of Fianna Fáil's assumptions and the Department of Finance's projections, that it will be impossible to implement the programme for Government? If so, which of the promises in the programme will not be proceeded with by the Government?

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