Joan Burton (Dublin West, Labour)

Inflation was 4.8% in October, which is more than most people's pay increases. Many private sector workers have had no pay increases at all in the past year. Due to Government incompetence, consumers have had to endure large increases in electricity and gas prices which the Labour Party were proven correct to describe as totally unnecessary. Inflation impacts most on those on low incomes and social welfare, for whom food and fuel are significant elements of the weekly budget. Given that the current scenario is likely to continue, it is important that the Government develops a mechanism to protect the living standards of those on low incomes. Today's budget did not adequately address that issue.

My greatest concern with this budget is that it says little regarding the threats from a changing world economy. The changes currently taking place in the United States in the area of credit have not yet fully worked out. I would like to know whether the Minister has a plan B should the chill winds we are experiencing become worse. It can be amusing for some people to see the masters of the universe and the bankers sweat but it is not appropriate in this case to feel a sense of schadenfreude. With the credit crunch, ordinary businesses, self-employed people and families on average incomes will suffer. Already, business people are finding that borrowing has become more expensive.

Public confidence in this Government's ability to manage competently is decreasing and the feel-good factor is disappearing rapidly, two sentiments which are more important to sustaining Fianna Fáil in power than any factor of Government personality or policy. While I hope that the times will not be too bad, particularly for those on lower incomes, we may be about to witness a transformation of politics. Today, the Tánaiste played to Fianna Fáil backbenchers in his bid to succeed the Taoiseach when he should have been looking after the wider economy. Only time will tell whether the gamble he took will be successful.

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