Brian Cowen (Laois-Offaly, Fianna Fail)

I do not accept the contentions made by Deputy Gilmore and I wish to make a number of points in reply. I had a discussion with Deputy Kenny a few moments ago regarding the importance of providing employment in order to avoid the possibility of people's incomes falling.

In the budgets introduced in October 2008 and April of this year, we increased personal taxation to a considerable degree in an effort to shore up the position while we awaited a full review of all expenditure programmes. The latter will form the focus of many of our deliberations in the coming weeks. We increased taxation but the yield is down and unemployment has risen. If we move to a higher rate of tax of 54% as has been suggested, the marginal rate will be 63%. Are people of the opinion that this will assist in maintaining jobs that are already under threat? Are they of the view that it will ensure that people return to work more quickly?

One can make a comment and obtain a certain circulation in respect of it. However, we face a situation where employment is under threat and where we are trying to improve job security and ensure that the productive sector of the economy can be maintained. We know that export-led growth in a more competitive economy is the best way of creating jobs, extricating ourselves from the difficulties we are in and creating growth in the economy. The latter is fundamental for providing money for all public services, including those available to social welfare recipients. If the locomotive's engine is not running properly, it is not possible for it to pull the train.

The idea that there is a monopoly of compassion on the opposite side of the House and that compassion does not exist on this side is not true. What I and the Government are trying to do is ensure that we can maintain jobs to the greatest extent possible. Thankfully, there are still, according to the most recent national household survey, 1.9 million people in employment. I accept that 245,000 people are drawing jobseeker's benefit or allowance on a full-time basis and that 70,000 others are drawing these on a part-time basis. Approximately €500 million of the social welfare budget is being allocated in order to assist those engaged in casual and part-time labour to retain their jobs.

If we recognise that jobs and growth are fundamental requirements and that they must be restored quickly in order to assist us in dealing with our economic problems, then we must be very careful to ensure that we do not take decisions in the short term which will place those jobs at greater risk. It is false to suggest that we have a choice with regard to taxing one area or not spending in another. We must examine the overall position and make a decision to retain jobs.

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