Brian Cowen (Laois-Offaly, Fianna Fail)

All of us interact with the public on an ongoing basis, regardless whether one is at home or travelling throughout the country. One of the big pluses is the degree of certainty it provides for people in terms of what is envisaged for the coming year. The uncertainty before the budget and some of the commentary made upon it beforehand spooked people as to what was involved. While it seeks a contribution from all sections of society, given the importance of putting our public finances back in order, it also provides us with the means for recovery, having stabilised the economy this year following a contraction of 7.5% the previous year. The budgetary strategy for 2010 came in on target, with expenditure broadly within target and revenues up €500 million on what was expected. We still have a deficit. In other words, the difference between what we spend and what we take in must be reduced.

The Deputy's suggestion, which is implicit in the premise of his question, that we can continue to implement budgets wherein the level of expenditure exceeds the level of revenue coming in is not possible in current circumstances in this or any other country. The false option which the Deputy may be indicating is not available at all. The recovery plan is predicated on reducing expenditure, increasing taxation and promoting growth. That is what we will continue to do, as provided for in the plan. On the suggestions put forward by the Deputy's party, I fundamentally disagree with them in terms of prospects for growth. The suggestion that 80% of the €15 billion could be made up from increased taxes would probably be the biggest jobs killer of all. I do not agree either with the Labour Party suggestion that 50% of that sum should be raised by way of taxes, with the other 50% being raised by way of cuts.

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