Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

It is regrettable that the budget does nothing to stimulate the economy. There is no support for small and medium size enterprises, many of which are going to the wall on a daily basis. I listened to Deputy Noonan make a point in relation to a reduction in excise duties and VAT but the real reduction we are witnessing is the continued haemorrhage of jobs among those directly employed in the retail and services sector. This does not make news because the job losses are not 100, 200 or 300 in single employment entities but a constant, continual loss of employment opportunities as retail and service sector businesses close every day before our eyes.

While there is a loss in excise and VAT in terms of people's ability to spend, that is a further by-product of these budgetary measures. This is compounded by the fact that we are losing the contributions of those people in those employments and one has a further drain on an ever contracting Exchequer position, as these individuals are entitled to jobseeker's allowance and other supports.

One has to take on board that there is an aggregate impact. All of the issues arising from these financial resolutions, be it the change to the income levy and health levy, the increase in the PRSI ceiling or the corresponding reduction in the entitlement to mortgage interest relief under the income tax provision in Financial Resolution No. 2, severely impact on their own. Taken together, they will unquestionably have a devastating impact on a significant swathe of individuals and families in this economy.

I do not have to go to the examples cited in the appendices circulated with the Supplementary Budget Statement. One only has to instance families, particularly those in the public service sector who are already crippled by the pension levy, the doubling of the income levy, the doubling of the health levy and no entitlement to mortgage interest relief after seven years. Many of those families have young people in third level education. The situation is very grave.

The Minister has done away with the potential to have any spending power and the opportunity to play any part in the rejuvenation of an ever deteriorating economy. This will lead to a further loss of jobs and a lengthening of the dole queue.

I will not speak for as long as the Taoiseach who, I am afraid, is not listening. These measures, in the absence of real initiatives to address the need to stabilise employment and create new employment, will add to our problem. This budget is very negative.

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