Joan Burton (Dublin West, Labour) | Oireachtas source

Last week's report by the Irish Fiscal Advisory Council, IFAC, is one of the strongest savagings I have seen by the council of any Government since the council came into being. It cited, in particular, the total disaster in terms of budget management, particularly in respect of health, as with projects such as the national children's hospital, and of housing. One point the Minister for Finance made last week was that there would be no income tax cuts this year - in other words, no increase in allowances or credits - at a time when wages are expected to rise by 3%. I have it directly from the chairman of IFAC that this will result in an additional €600 million for the Government. This is because workers will be earning more but not getting any tax reductions in terms of PAYE.

Can the Taoiseach state what the situation will be for the hundreds of thousands of people affected, particularly pensioners, carers, those on long-term disability benefit, lone parents and others who rely on social welfare, social protection and retirement income? Will the Taoiseach tell us whether the indications of the Minister for Finance to the effect that there may be no improvements in social protection payments and retirement payments are true? There is to be an extra €600 million, coming in the main from PAYE workers, who would like to see people such as pensioners protected in the budget. This is also a really important point for the rural economy because we now have very large numbers of pensioners and young children. Inevitably, therefore, our costs are high as a country. Is the Government really talking about no social welfare increases? I welcome that the Minister for Finance seemed to confirm the Christmas bonus is unaffected, but that money is already in place for this year. Can the Taoiseach really say to the pensioners and carers that there will be no room in the budget for them?

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