Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I thank the Deputy for his comments. The independent Fiscal Advisory Council was established as a result of a recommendation from the troika to give independent fiscal advice to the Government. The Government is about considering and making decisions on budgetary matters. The Government must also take into account the social implications of recommendations from the independent Fiscal Advisory Council. Were the Government to have proceeded to impose a further €2 billion in cuts to services or whatever, people would have been very much more constrained than they have been. The Government took into account the social implications and set out the path to a sustainable future where flexibility emerging in the economy can be given back to the people, for instance, through reductions in income tax where a person on the minimum wage will get back about €173 starting in January. A person on the average industrial wage of €35,000 will get back €400 starting in January. A couple drawing €50,000 to €55,000 each will get back more than €1,000. The emphasis has been on the squeezed middle earning between €30,000 and €70,000. Had the Government taken the view of the Irish Fiscal Advisory Council entirely to heart, the situation would have been very different.

The economy is showing signs of confidence. Our consumer confidence is the highest for seven years and the Deputy can see the impact of a rising economy in terms of traffic jams appearing again on roads. The number of cars being bought has increased. We are very conscious, as the Deputy is, that this has not filtered down to every family in the country and that is where we need it to be. Government is about judgment and making decisions. We chose to make these decisions on the basis of the implications for the people. I do not disagree with the Deputy's assertion that time should be allocated for a discussion on this at an appropriate time and I will discuss that with the Whip.

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