Leo Varadkar (Dublin West, Fine Gael)

I will be quick and will also confine my remarks to the first resolution. In the days coming up to this budget, I thought we were being prepared by spin for bad news, but I did not realise that an income levy like this would be increased. I am shocked by the fact that the Government has gone for what Deputy Shatter accurately called the Lenihan levy. The suggestion from Ministers is that we are being given unpalatable medicine for a sick economy and somehow it will get better. This budget is not medicine, however, it is pure poison. The tax hikes will depress demand, reduce consumer spending and plunge us deeper into recession. That is what the Government is also doing with capital spending and it is proposing to increase the deficit from 5.5% of GDP to 6%.

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