Brian Lenihan Jnr (Dublin West, Fianna Fail)

There is no question of the introduction of a supplementary budget because the tax burden has been increased in the budget that was announced this October for next year. An additional €2 billion in tax will be levied next year. Members will have an ample opportunity to examine the detailed financial provisions during the passage of the Finance Bill. Accordingly, an additional supplementary budget next year levying further taxation would in all probability inflict further damage on the economy. In the current position, as Deputy O'Donnell is well aware, the great majority of our tax items that rest on discretionary purchases, be they houses, goods, alcohol or cigarettes, are seriously down and increases in those taxes would not lead to any increased income for the State. The only option for the State in terms of further increases in taxation is increased taxation on income. Increases on income, above and beyond the levy proposed in the Finance Bill, would amount to a substantial disincentive to labour in the year ahead.

I have never suggested there should be a mini budget next year. There has been considerable speculation about it and there was an inaccurate report in The Irish Times on Tuesday,which I am pleased to note it corrected today. There is no question of a mini budget. Of course if there is a deterioration in the public finances I will bring appropriate proposals to Government to address that.

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