Seanad debates

Wednesday, 16 December 2009

6:00 pm

Photo of John Gerard HanafinJohn Gerard Hanafin (Fianna Fail)

One must reduce one's current budget spending. That is what we are doing now. Along with that, we are talking about a Government that is involved in enterprise and is ensuring the economy will go at an even keel. It has been suggested we are uncaring. The reality is that this Government does not lack compassion - it lacks money. We looked at all the different sectors, including those who receive social welfare benefits. The 3% increase in social welfare in 2008, when taken with deflation of over 6%, meant that such people had enjoyed a net gain of 9%, which was unsustainable in the current budget system. We had to make a 4.1% cut while protecting the old and the vulnerable. It had to be done. It was as simple as that. It is a question of the fairness of the taxation system and the fairness of this Government. Efforts were made to ensure everybody plays his or her part. I accept the public sector has been hit hard, but it is not as if we do not have the figures. We know what is happening in the private sector. We know how many jobs have been lost. We know how many jobs are vulnerable. We know that people have taken pay cuts. It is incorrect to suggest that one group is being asked to take an unequal share of the burden. It is not as if we expect private sector workers to take their cuts in the future - they have already taken their cuts.

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