Dáil debates

Tuesday, 13 October 2009

Leaders' Questions

 

12:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)

The Governor of the Central Bank made a very significant statement today at the ESRI conference. He said it is necessary to rebalance public spending and taxation by restoring the shares of taxation and spending in GNP to the levels which prevailed in the years running up to the turn of the millennium when the economy was growing along a sustainable path. The ESRI quarterly economic commentary gave very clear guidance with regard to the balance between taxation and spending savings in the upcoming budget. It stated: "There are strong arguments for postponing any significant further tax increases until the worst of the recession is over". Despite this, it clearly points out the growing gap between the Government's budgetary strategy and the advice given by Deputy Richard Bruton over the years in terms of getting the balance right between taxation increases and spending savings.

The most worrying event over the weekend was the approach taken by the Minister for Transport, Deputy Dempsey and the Minister for Communications, Energy and Natural Resources, Deputy Ryan who took on the burdens of the nation and who told us they had agreed a survival programme for Government as distinct from a survival programme for the country. The shambles of the deal that was done last weekend is shown clearly in the fact that we still do not know how much it is going to cost or, if listening to the Minister for Education and Science, Deputy Batt O'Keeffe, whether there is a deal done at all. He is clearly of the view that in respect of third level fees that what was agreed at the weekend is only a temporary little arrangement.

What is the cost of the deal agreed on Saturday between the Green Party and the Government? What taxes will be increased or what services will be cut in order to meet it? I am sure in the 70 hours of discussion chaired by the Minister, Deputy Dempsey, these matters were discussed in some detail. What services will be cut to pay for it?

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