Pearse Doherty (Sinn Fein)

This the 11th budget presided over by Fianna Fáil in government. During that time, we have had unprecedented economic growth. Now, however, the Government is warning us to tighten our belts. Fianna Fail's pre-election promises were an illusion but also a masterstroke in terms of electoral strategy. It promised the earth, moon and stars but as soon as the votes were cast, it embarked upon a campaign to dampen down expectations by telling voters that many of its promises were no longer realisable. The commitments made by Fianna Fáil in its manifesto included the provision of 2,000 additional gardaí, 4,000 extra teachers, 1,500 new hospital beds and 2,000 additional health consultants, as well as tax cuts, PRSI cuts, affordable housing and so on. It was clear that all of these could not be delivered on if the Government was not willing to address new areas of revenue and reconsider those commitments, including tax cuts, that would reduce revenue intake.

This budget represents a missed opportunity. It was a more difficult budget to deliver given the economic circumstances that pertain, but it offered an opportunity to increase the net tax take. One way to do this was to harness the natural resources off our coasts that we have been handing over to multinationals. The €51 billion in gas that is expected to be discovered off the west coast could have funded this budget. European states such as Norway and other countries throughout the world use their natural resources to generate wealth that is invested in education, health and social infrastructure for the benefit of the people. It is a shame the Government did not replicate this stance.

The Government also failed to deal with the tax loopholes that allow individuals to write off tax under various schemes. These reliefs are being exploited by some wealthy individuals who reduce their tax bills to such an extent that they end up paying less than ordinary workers. The Minister has again missed an opportunity to deal with this.

This budget must be judged on facts rather than Government spin. The criterion for judgment is whether it will lift people out of poverty, ensure an equal distribution of wealth and deliver improvements in public services. It will achieve none of these. There are positive initiatives in the budget but no major increases in resource allocations. An increased allocation of €95 million for education will provide only for the extra 13,000 pupils who have come to this country and require a school place next year. We will not be able to provide for schools in bands one, two and three, which are operating out of dilapidated buildings throughout the State. No progress has been made on medical cards and child care. I spoke to a low-income worker yesterday, the sole earner in a family of five children who are cared for either in crèches or in after-school projects. This Government's position on child care means he will pay more than €500 per week.

The Government has spoken about the €12 increase for pensioners and those on social welfare and indicated this is a caring budget. I would compare this with what happened to three Ministers and their proposed wage increases.