Séamus Healy (Tipperary South, Workers and Unemployed Action Group)

This is a minor and totally inadequate response to what is, in effect, a national economic and social emergency. It was highlighted first as a jobs budget, then as a jobs initiative and, more recently by the Minister for Finance, Deputy Michael Noonan, as a modest measure. It certainly bears no comparison to the various commitments given by both Fine Gael and the Labour Party in the course of the last general election campaign. My recollection is that there was talk of 100,000 jobs and 50,000 training places being created. This is a very modest measure, as admitted by the Minister, when what we need is a very serious jobs initiative.

The past three years have effectively seen a jobs destruction programme which has destroyed approximately 100,000 jobs each year, yet the Government assumes power and effectively takes over the programme of the outgoing Fianna Fáil-Green Party Government and continues a deflationary programme of cuts to services and benefits, as well as increases in taxes. That deflationary process is making the crisis and number of job losses even worse. We also have the continuation of job destruction in the public service, in which the Government is committed to not filling posts to the tune of approximately 25,000 jobs. In summary, we have a very modest proposal, to use the Minister's own words, and an overall programme which is being carried on by the Government from that of the previous Government and which is, effectively, a jobs destruction programme. In addition, we have the destruction of 25,000 jobs in the public sector.

In the past three years we have taken €14 billion out of the economy, which means less money is available for job creation. It has also had a particular impact on small businesses and service industries. If one walks down the main street of any town in the country, one will find numerous shops and offices closed and continuing to close. This year we will pay approximately €5.9 billion to the European Union. However, by 2014 we will be paying €10 billion to €11 billion, which is completely unsustainable. What is happening is that middle and low income families and those generally dependent on social welfare are paying for the recession they had no hand, act or part in creating. On the other hand, very wealthy individuals are not being taxed and pay no wealth tax. At this stage, we cannot afford to make the repayments to the European Union and the IMF. Therefore, we cannot afford to have tax exiles who pay no tax in this country and we cannot afford a situation where the super rich 6% of the population, with €250 billion in assets, are paying no wealth tax. As I have said previously in the House, the bondholders have to be burned. I support a default, which I would like to see done in a structured and negotiated way. However, if it cannot be done in that way, it will have to be done unilaterally. Nonetheless, these measures will not be enough. We need to ensure moneys will be made available through taxing very wealthy individuals. There should be a little patriotism shown by the super rich. An emergency 20% levy should be applied to the super rich and there should be an ongoing wealth tax of approximately 5%. After all these measures, the individuals concerned would still be super-rich. It is time the Government ensured they paid a proper wealth tax and an emergency levy in the current year.

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