Thomas Pringle (Donegal South West, Independent) | Oireachtas source

As we head into budget 2013, the Taoiseach and his colleagues are slavishly following their austerity programme. Yesterday, the IMF admitted in its world economic outlook that it had underestimated the impact of austerity on our economy. The report stated the IMF had got it wrong by 200%. Every €100 taken out of the economy costs up to €150. In next month’s budget, the Taoiseach intends to take €3.5 billion out of the economy again which, according to the IMF, could cost up to €5.2 billion. It is in this context that Ireland had the second highest austerity measures in the world in 2010, only beaten to the record by Greece.

Yet, the Taoiseach proudly claims he has the country on the path to recovery and his Ministers claim austerity will help us regain our economic sovereignty. How can he seriously tell the House this is correct policy? The mix of austerity prescribed for us is two thirds cuts with one third taxation. We have seen what the cuts mean with the cutting of disability allowance for those under 18 being floated again, along with more savage attacks being considered in the budget. Will the Taoiseach consider rebalancing the ratio of cuts to taxation in the budget so as to ease the burden on the vulnerable in society? Will he ask his masters in the so-called troika to admit they got it wrong and stop these austerity budgets? I have no doubt the Taoiseach will claim the IMF expects growth next year of 1.4%. With planned austerity we will actually need to grow by over 4% to just recover what the Government will cut in December. Will he explain to the House why this is the right policy?

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