Eugene Regan (Fine Gael)

I agree with Senators O'Toole and Ross regarding the proposals from IBEC to cut social welfare payments. While there is an element of deflation in the economy, its causes are very specific, mainly related to interest rate reductions and oil price decline. This proposal is very divisive and quite nasty. Many people are in a very difficult position in this economic crisis. We are talking about the most vulnerable in society. There has been talk about a change of leadership in the country and in the banks. There is a question of leadership in IBEC. The statement on cutting social welfare payments is as out of touch as the leadership of IBEC was in agreeing a national wage agreement last summer that was totally out of sync with the deteriorating economy. There is an issue of leadership in IBEC. At a time when we are trying to find solutions to the serious problems in the public finances and the economy, to introduce such divisive proposals is unfortunate.

Unemployment has now reached 11%. Yesterday Fine Gael introduced a comprehensive pre-budget perspective which proposes supporting jobs, sharing the burden and restoring confidence. It is very specific in its suggestions. It suggests an alternative way to manage the economy in the dire situation in which we find ourselves. It has proposals on stimulating the economy and creating and retaining jobs. In restoring the public finances two thirds is focused on expenditure and one third on tax cuts. What we say is that no economy has ever taxed its way out of a recession. The question is whether we are going to chase down the economy with more taxes. Are we going to avoid the hard decisions on expenditure? Will this budget focus on the soft option of increasing taxation? The fundamental question for next week's budget is whether we will tax this economy into a depression. Does the Deputy Leader agree with that approach?