Dick Roche (Wicklow, Fianna Fail)

Labour, however, opposes such a move with its solution of raising €2.3 billion in additional taxes. That, as all members know, is not sustainable.

Fine Gael claims one cannot tax one's way out of recession, a point with which few would disagree. Clearly, the two Opposition parties are poles apart on strategy, however.

The Labour Party's position is quite extraordinary. Its public representatives are intelligent and dedicated, as most of us are in this House, and they want the best for us. However, the party's spokesperson's contribution to this debate is perhaps best summarised by a recent piece in the Sunday Independent:

It is quite amazing that [Deputy] Joan Burton is still living in a world where party politics takes precedence over the national interest. So what we have here is the opposite of the Tallaght Strategy, a situation whereby the opposition is actively working against the Government's efforts to save Ireland.

That judgment is harsh but not inaccurate.

What is novel in the current circumstances is that there are clear divides in Fine Gael. I admire the fortitude and courage brought to this issue by Deputy Bruton. More than any other Member in this House, I pored over the Fine Gael policy document released the Friday before the budget. While a courageous document, it demonstrates the internal divisions in Fine Gael on strategy. It proposes, for example, PRSI hikes that are savage, will kill jobs and slash take home pay.

Deputy Richard Bruton, to his credit, accepts there must be a cut in public expenditure of a net €4 billion now. Deputy Lee, the economic guru who gets so much media time and space, disagrees, however. I concur with the former Fine Gael leader, Alan Dukes's comments that Deputy Lee's contribution at this year's MacGill Summer School was far wide of reality. Specifically, Deputy Lee rejected the view that the national deficit should be brought to within 3% of GDP by 2013 when Deputy Bruton had already called for the deficit to be addressed by 2012.

The Fine Gael pre-budget document itself has some examples of voodoo economics. The Fine Gael proposal to abolish PRSI relief on employee pension contributions will force €185 million in additional costs on businesses. The proposal to abolish the ceiling on employees' PRSI will raise €120 million is in effect a substantial hike in taxes for workers who have already been hit with increases in taxes. Another proposal is to remove the employee weekly PRSI allowance which will reduce take home pay of all workers, by €350 million. It takes courage in politics to lay down the unpalatable.

The proposals on carbon credits are simply wild. This effectively means one would claw back the value of carbon credits in the energy sector. These proposals would shove up electricity costs for business and households. There is no doubt in my mind the proposition would be the subject of legal challenge because when Minister for the Environment, Heritage and Local Government, I introduced the arrangements. If that legal challenge were to be lost the Deputy would be €200 million short in his calculations.

See this speech in context