Michael McGrath (Cork South Central, Fianna Fail)

This is a socially regressive budget. Its impact will be felt hardest by low and middle income families with children, young people with disabilities, vulnerable elderly people and students trying to chart a better future. The Government had the option of closing loopholes, a measure that was promised, and targeting higher income earners. Instead, it has played its trump card by increasing VAT in the first year of its five year life. This is despite the clear evidence of the weakness of the domestic economy. The tens of thousands of families in mortgage arrears will find nothing in today's announcement that will help them. People outside medical card guidelines who take out medical insurance will be hit with massive premium increases. The 448,600 people on the live register are being told that unemployment will increase.

The real flaw in this budget is its inherent lack of fairness. The people know cuts must be made and that taxes must be increased and are willing to accept them if they are fair. Unfortunately, as the measures announced today and yesterday are rolled out in the weeks ahead, that basic test of fairness will not be achieved. The real measure of this budget and the Government's economic strategy will be whether real inroads are made in the months ahead in reducing unemployment. I am sure all Deputies, despite their differences, can agree on that much.

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