Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

It is one or the other. The Minister cannot have it both ways. The truth is that he has played a three-card trick. Since he announced the pension levy back in 2011, he reiterated time and again - he did so again in last year's Budget Statement - reassuring all those affected by it, that it was to end in 2014. He has now broken his word. As he knows, the levy has very significant consequences for those with pension savings. We know the scale of the crisis in defined benefit schemes, in particular, including a deficit of €1.5 billion alone in the ESB. As the Minister is not abolishing the levy, let us not play with words. He is increasing it in 2014 and reducing it in 2015. Will that be the end of it? I said in 2011 that I just did not believe the levy was to end in 2014. I believe people will treat with some cynicism the trick the Minister has played with the levy. Until we shone a light on this issue, the proceeds from the levy were being diverted into the general Government coffers and not used for the jobs initiative; therefore, I am glad the Minister that has now made further announcements on the initiative.

Will the Minister clarify whether there is PRSI of 4% on top of the higher DIRT rate? He seems to be indicating that there is not; therefore, the figure of 41% is inclusive of PRSI.

In regard to excise duties, again, the Minister has left the off-trade untouched and is targeting the on-trade with the increase in excise duties. He knows what our view is on this issue. We believe the problem in regard to alcohol sales is, frankly, encountered in the large multiples, where alcohol is sold exceptionally cheaply. There is a need to reduce the enormous discrepancy between the on-trade and the off-trade, but the Minister has made no moves whatsoever on that front.

The Minister is abolishing the air travel tax from April next year in an effort to boost tourism. However, as evidence of the lack of cohesion, he is decreasing the budget for tourism programmes by €13 million. He is giving with one hand and taking away with the other.

It is welcome that Ireland is on course to exit the bailout programme in two months time. We do not regard the putting in place of a precautionary line of credit as being in any way a second bailout. We encourage the Minister to take all necessary prudent steps to ensure Ireland can exit the bailout programme in a sustainable way. However, in many ways, the enemy of the Government from that point onwards will be complacency because fundamental reforms in the sheltered professions, the banking system and in terms of labour activation remain to be put through. A lot of work has to be done on that issue.

We supported the liquidation of the IBRC in good faith and I do not regret that decision. However, I am not happy with a number of issues that have emerged since. I am not happy that credit unions lost some €14 million because of the way they were treated, that the employees were shafted from the point of view of redundancy or that mortgage customers of the former INBS now face the potential risk of losing the protections afforded to them under the code of conduct for mortgage arrears, depending on who goes ahead and buys the loan book.

The Minister needs to do a lot more work in respect of the ESM. Mr. Wolfgang Schäuble today said it was not probable that we would get a retroactive deal on bank debt recapitalisation; therefore, a huge body of work remains to be done in that regard. The Minister has indicated previously that he will set out a medium-term economic strategy. I want to know that we asking the big questions about whether our debt is sustainable, whether we have a proper funding model in place for third level education, pension provision, pension liabilities and universal health insurance and whether we have a vision for Ireland's role in the European Union.

Yet again in budget 2014 the Government has targeted some of the weakest in society. The basic level of comfort given to older citizens is being systematically unravelled. Those struggling to keep the family home have been given another kick. This is a Government that talks about fairness but does the opposite. It is a Government that has set records for broken promises. At a time when the people want to see it show compassion, exemplify the values of the country and show true leadership, they have been badly let down. This budget fails the basic test of fairness. Even within the accepted constraints, it could have done better. It is now over to the people to pass judgment on it.

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