Joe O'Toole (Independent)

It is interesting to hear the songs from offstage on the issue of how the Government is approaching the budget. It was also interesting to hear the Minister for Social and Family Affairs talk about a three tier approach to certain aspects of social welfare on the same day we are told the EU is considering giving Ireland a fourth year to get its finances below the 3% budget deficit. As I have mentioned many times over the past couple of weeks, we have examined various approaches to this matter. The trade union social partnership approach suggests a six year term and increased taxation. The Government says that will not bring in enough money and that it does not want additional taxation. At the same time Mr. Garret FitzGerald has explained that our taxation system for the highly paid is the lowest in Europe. That is an important point because the main argument against a higher level of taxation for very wealthy people is that such people would leave the country. They have nowhere to go. Ireland has the lowest taxation for those income earners in Europe.

Why do I put these arguments together? There is solution staring us in the face. I am watching this from the outside and do not have any inside information. However, it seems clear the Government could consider a three tier approach to taxation. It could also consider a four year as opposed to a three year term, always acknowledging that the €4 billion must still be delivered next year. The pain is front loaded. If the Government says that such an adjustment to the taxation system will still not bring in the amount of money required, at least it knows that all partners are agreed that €5 billion must be delivered. We are now looking at solutions. Basically, the Taoiseach should put all the parties in a room, lock the door behind them and tell them he will let them out when they can bring out a banker's order for €5 billion signed off by all of them with which everybody is happy. Nobody will be completely happy, but it is getting closer to the possibility of a solution. There are ways of making it happen and there are ways of approaching this budget whereby everybody will feel they have had some input into it and must live with it.