Michael McGrath (Cork South Central, Fianna Fail)

The Minister, Deputy Noonan, previously stated in the House that the finance (No. 2) Bill 2011, which will give legal effect to the jobs initiative to which the Taoiseach referred, will be budget neutral and will therefore include compensatory measures. Can the Taoiseach confirm that in order to fund a reduction in VAT and employer PRSI, we will face further spending cuts or tax increases in the summer to fund the jobs initiative?

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