Enda Kenny (Mayo, Fine Gael)

I will not comment on what the Government will do in respect of the budget to be prepared for 2013 but in budget 2012, the Government renegotiated the memorandum of understanding with the troika and reversed the minimum wage cut introduced by the previous Government. It also renegotiated the universal social charge with the troika, and that liability was removed from 330,000 people. In addition, it did not increase income tax, and there was no cut in the basic rates of social welfare payments.

We face a challenging time ahead, and the Government will apply itself to that in meeting the targets we have set out and the ceilings that have been put in place and will make its decisions based on being as fair as possible. Those who can contribute should and will contribute to enable our country to get out of the programme we are in and retrieve our economic independence.

In some of the key measures in last year's budget, capital gains tax, capital acquisitions tax and deposit interest retention tax were increased to 30%. The tax-free thresholds for CAT have been reduced to take account of the fall in asset values in recent years. It is not true to say, therefore, that the Government did not act in respect of the lower paid and the more vulnerable. We are very conscious of people on the housing lists, those who are homeless, and those in lower paid positions.

The priority of the Government must be to reduce the live register figures substantially in terms of the long-term unemployed. That is, in part, the reason the agenda from Europe has changed. There is now an interest in a growth agenda, which is why the European Investment Bank representatives were here recently. That is the reason the Government was able to introduce a stimulus package yesterday of €2 billion, which will not sort out our problems and will not take effect for some time but shows the increased interest on the part of the European Investment Bank in participating in a growth agenda for this country that will create jobs, boost the local economy, and deal with some of the issues the Deputy mentioned. As far as budget 2013 is concerned, the Government will apply itself to that in the months ahead.

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