Micheál Martin (Cork South Central, Fianna Fail)

A few weeks ago, the Taoiseach announced in terms of the budgetary process "What I intend to do this year is very different to ... any other budget to date". We did not quite understand what he meant when he made that statement some weeks ago. However, since then, his Government has announced the fiscal framework, the capital investment programme as well as the expenditure sector reform programme outside of this House. His disregard for the House and its participation in the budgetary process has reached new levels.

On Thursday last, it was announced that he intended to increase the rate of VAT by 2% in one fell swoop in 2012. This information came to Members of this House after it had been distributed to members of the German Parliament. Clearly, the Taoiseach's budgetary process was different to any previous budgetary process. He has doubled the press conferences, trebled the leaks and halved the information to this House. In passing, I ask the Taoiseach to confirm that the documentation that was sent to the German Parliament has now been lodged in the Oireachtas Library, where it should be, so Members from across the House can have access to it.

The Taoiseach must accept that this shows contempt for this House and its elected representatives. To be specific, at a time when economic growth rates are very low, retail businesses are on their knees and confidence is low across the eurozone and in the United States because of difficulties there, surely the Taoiseach must agree it is the worst possible time to increase VAT by 2% in one fell swoop in 2012. Without question, does he agree that this is a tax on jobs and will damage the overall domestic economy, particularly the economy of the Border counties? I point out to the Taoiseach that in 2009, when the VAT rate was increased by 0.5%, the current Minister, Deputy Bruton, described it as turning a recession into a depression, and the current Minister, Deputy Burton, described it as an astronomical increase.

When this proposal is combined with other suggestions about sick leave and redundancy payments, it all adds up to a Government that is heading towards a massive disincentive to job creation and an attack on jobs and small business. Will the Taoiseach consider reversing the decision to increase VAT by 2%?

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