Peter Power (Limerick East, Fianna Fail)

I am reluctant to increase personal income taxes too much. It has not worked in the past and it has always proven to be a disincentive to work.

This debate is properly called a macro-economic debate, but we simple cannot ignore the core values which we have as a society in making the choices which confront us. We must have uppermost in our minds the need to provide the greatest possible protection to the poorest and most vulnerable in our society, especially the elderly, consistent with a solid foundation upon which to protect the vulnerable in the future.

The Government is rightly proud of the major gains in social protection and support for vulnerable people in recent years, especially in the area of the State pension. Of course, a key part of the plan should be incorporate a total focus on a return to growth and jobs, but - this is where we fundamentally differ with the Fine Gael Party - to not reduce expenditure and to not increase taxes does not give enough room in which to bring about required economic and fiscal adjustments. This means also that we need to increase our competitiveness, continuing to reduce our unit labour costs - huge progress has been made here - and providing a business environment conducive to foreign direct investment.

Each party must credibly demonstrate four key ingredients. First, it is an absolute prerequisite that the plan is credible to the international markets. Second, it must convey a message of determination to the international community. Third, it needs to protect the most vulnerable and, fourth, it must have the protection and creation of jobs at its core.

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