Seanad debates

Wednesday, 6 December 2006

Budget Statement 2006: Motion

 

6:00 pm

Photo of Joe McHughJoe McHugh (Fine Gael)

I am being interrupted, Chairman. Some ten years ago a Minister of State resigned over a similar leak as a result of a simple mistake by a civil servant. Many newspapers had access to much of the information on today's budget, which basically made a damp squib of it. It was all much ado about nothing because the public in general knew exactly was coming up in it.

Reference was made in the Budget Statement to a review of motor tax — only a review, after ten years in Government. What is that about? The Government has been ten successive years in office, yet it refers in the budget to a review. That is an insult to the public. We are dealing with the people's money.

A budget is no more than the distribution of the people's hard-earned money. I accept that there will be razzmatazz on budget day and a perception that people will be better off in the long run. However, counties like that of the Minister of State, Deputy Seán Power, Kildare, and my county, Donegal, rely totally on the construction and services sectors to sustain employment, as is the case in nearly every county. I make this point because of the information outlined in the budget document, which refers to the economic outlook, GNP growth of 5.7%, GDP growth of 5.4%, growth driven by domestic demand, the small contribution from net exports, a general deterioration in competitiveness, a relatively modest rate of export growth and a low rate of labour productivity. When the razzmatazz and circus element of today's budget is finished, we will have to examine the real aspects of the economy and the long-term economic projections.

It is the labour intensive sectors such as the construction and services sector which keep our economy alive although hanging by a dangling thread. The sooner this Government wakes up and realises it has made mistakes, the better. It should have introduced the tax incentives for innovation and research and development, which it finally introduced today, ten years ago. This is ten years too late, as the Minister of State, Deputy Parlon, knows. I charge the Government with total neglect and irresponsible handling of this economy.

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