Brian Cowen (Laois-Offaly, Fianna Fail)

It proved possible to identify an alternative strategy which retained the essential elements of the decision regarding the granting of medical cards irrespective of income but in a way which confined its impact to the manifestly much better off. In the case of the income levy, the essential elements and financial impact are being maintained. It is right, in the context of our relationship with the social partners and the importance to the country of the stability afforded by a new pay agreement, that we should take seriously the concerns expressed by Congress, and that is what we have done.

Difficult and challenging measures will have to be implemented in line with the budget announcements. It is inevitable in regard to such difficult decisions, which come after a long period of sustained economic growth and substantial increments to benefits for taxpayers in budgets over many years, that the adjustment to the new economic and fiscal environment is difficult. That is all the more reason for the Government to be sensitive and reflect on issues raised when it is possible to do so within the framework of the budget strategy and arithmetic. As for other matters, these will be implemented, and the serious situation outlined by the Minister for Finance will be faced with determination in the exceptional times in which we live.

See this speech in context