Deirdre Clune (Cork South Central, Fine Gael)

Today, we see the devil of this budget is in the detail. As we examine it further, it becomes more apparent how unfair it is. I refer in particular to the tax increases on lower and middle income working families, who have been dealt an unfair hand. The budget will hurt them and reduce their spending power, and it will suck money out of the economy that these people would have spent on small businesses, services in their communities and essentials for themselves. That money will not now be available to them, which has a negative effect on the economy.

The Government had forecast in the four year plan that 2011 would see a 1.75% growth rate but the budget undermines that prediction. Even before the Minister announced the budget, the European Commission revised that growth projection to 0.9% and the money the Government has taken out of the economy in terms of personal taxation will further reduce the growth rate. The combination of child benefit cuts, reduced tax credits, paying a higher rate of tax at an earlier stage and the universal social charge that now starts from an income of €4,000 will definitely impact more on low and middle income families than on higher earners. One need only look at all the tables and examples on offer to know that this position does not make sense.

With regard to social welfare, the €8 cut in widows' pension, invalidity pension, blind persons' pension and the carer's benefit does not make sense. These are people who cannot work and who may be in charge of young children. This is not the area the Government should tackle. Widows and carers are generally female and have not been able to add to their employment value because they are out of the workforce, so they are particularly hit by the €8 cut. The focus should have been on people who are fit and able to work. The grey area between the income from welfare and the income from work should have been tackled. However, the emphasis was on those who cannot work - on widows, those on invalidity benefit, blind persons and carers - which is unfair.

In the whole area of social welfare, there is no mention of tackling fraud, despite the recent "Prime Time" programme which estimated that between one in ten and one in seven social welfare benefits are fraudulently claimed. This would lead to a saving of €2.2 billion to €3 billion per year if it was tackled. A simple proposal such as the setting up of a fraud hotline could have been a step towards tackling this area. As part of our Reinventing Government proposal, Fine Gael has suggested a one-stop-shop to encourage rationalisation across all State sectors, including in regard to farm related payments, supplementary welfare allowance, medical cards, higher education, legal aid services and all such areas where there could be a means assessment provision. This could be done simply in a one-stop-shop. The Government could have done much in yesterday's budget instead of just focusing on the easy prey, which was its approach.

It was a disappointing budget in that it did not provide any sort of stimulus. A simple proposal such as reducing the lower rate of VAT, increasing DIRT, ensuring accredited capital allowances would go from eight years to three years and introducing a measure in regard to software purchases would have worked towards getting the economy moving. However, there was no imagination and no emphasis on ensuring money stays in the economy so the people can spend and contribute to growth.

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