Finian McGrath (Dublin North Central, Independent)

I thank the Minister of State, Deputy Curran, for providing me some speaking time. I also thank the Minister, Deputy Hanafin, and the Minister of State, Deputy Kelleher, for sharing their time. The true character of a democrat is to always allow Members of this House to air their views. It is a pity some of the other political parties do not share my views on democratic rights, but that is a debate for another day.

In regard to the budget, I have always said that I would listen to the Minister for Finance, read the small print in the budget and then decide how I would vote. I also judge it on how the Government treats people, especially those who need our support at this difficult time. I agree with the Minister of State, Deputy Kelleher, that we need honest debate. However, on examining the details of the budget, I am appalled by the decision to cut €8 from the income of those on welfare, including those who have already suffered by losing their jobs. The cut of €10 in supplementary welfare allowance, which is the safety net for many poor people, is shameful. The decision to cut child benefit without compensating children depending on unemployed parents is beyond all belief. The minimum wage cut will not save the Government a single cent and will not reduce Ireland's borrowing requirement. That, to me, is honest debate. There is no evidence that such a cut will create a single job but there is ample evidence that it will increase poverty and hardship for many families. In some cases it will mean that people at work will be worse off than those who have lost their jobs. This, in itself, will create a further call for cuts in welfare and deeper impoverishment of large sections of our communities.

Let us have an honest debate and these are the honest facts. The measures in the budget will impart a severe deflationary shock to the economy such that it will make it very difficult for the country to recover. It will condemn us to a prolonged slump lasting up to perhaps ten years. The consequences of this for a whole generation of citizens are almost unthinkable. The reason I have such a pessimistic view is that I believe recovery cannot be achieved by austerity alone and I repeat that in this debate. Growth is needed to do the heavy lifting of adjustment and to expand the size of the economy so that the scale of the debt problem is proportionally decreased.

In regard to the budget and people with disabilities, yesterday's cut means that people on disability allowance are down €847.60 a year since 2008. An €8 per week cut in the disability allowance was announced in the budget. This on top of an €8.30 per week cut last year, amounting to a cut of €16.30 per week in only two years, which represents a fall in benefit from €204 to €188 per year. It has been proven time and again that there are extra costs associated with having a disability.

There has also been a cut in the carer's allowance of €16.50 per week on the 2008 rate, bringing it down to €204 per week. These cuts are at variance with the national disability strategy which is often spoken of in Government circles. We should not penalise the disabled, the blind and the sick for the actions of the bankers. That, to me, is honest debate and it is important to have such honesty.

On a positive note, I welcome the fact that the salaries of the Taoiseach, the Tánaiste and Ministers will be reduced, that there will be a maximum salary of €250,000 for those in the public sector, including State agencies, that there will be no reduction in the State pension and an additional payment of €40 will be paid to households that receive the fuel allowance payment.

I met a group of senior citizen in Coolock today and while they were relieved that there will be no cut to the State pension-----

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