Seán Power (Kildare South, Fianna Fail)

The budget measures introduced by my colleague, the Minister for Finance, are very much a necessary response to the economic turmoil we currently face. Ireland has experienced a dramatic economic downturn against the backdrop of a collapse in the world financial order. This, in turn, had a major adverse impact on the resources available to the Government in framing the supplementary budget. It has been a major challenge to frame a budget in such circumstances, but I firmly believe the budget represents the best possible balance in these difficult times.

Unemployment numbers, which have been increasing in recent months, bring their own challenges. While numbers alone never tell the real story, the unemployed are individuals who face a difficult situation, one which many of them had not envisaged 12 months ago. The challenge that brings presented difficult choices for the Government and difficult choices decisions had to be made. By reducing the take home pay of many families throughout the country, we are in a position to provide assistance to the people who now find themselves unemployed. I acknowledge, as has a number of colleagues, the hardship and the difficulties people now face, the increased taxes and levies that have been placed on them and the changes that will make to running their homes and to the lifestyle to which they have become accustomed. I accept that is a problem faced by many households throughout the country as a result of the position and the decisions taken in the budget.

The Opposition has been critical of many of the budgetary provisions and decisions made. While some constructive proposals were presented, calls are made frequently to end the tax exile status of citizens. If one were to raise that issue in any pub in the country tonight, I would say that people would agree that it should be ended but addressing it is not as simple as merely abolishing that status. We have benefited enormously from tax exiles from other countries coming to this country.

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