John Gilroy (Labour) | Oireachtas source

It is important that the parties place accurate information on the record of the House, and I would welcome clarification on the matter.

Since the beginning of the crisis successive Governments have removed ¤24 billion from the economy. The Minister for Public Enterprise and Reform, Deputy Howlin, has stated that this represents the vast bulk of the total adjustment required.

It is a massive amount of money and represents 85% of what needs to be done. The general Government deficit this year is just below ¤13.5 billion or 8.2% of GDP. While it is still appallingly high, it is well within the parameters of what is required. The primary deficit after the budget is to be reduced by ¤2 billion.

This is a fair budget in which we have protected the most vulnerable in society. Of course, everybody will be worse off after it, but higher earners will contribute more and it is right that they should do so. The Labour Party and everyone present would prefer if none of this was necessary, but it is absolutely impossible to close the gap in the public finances without tackling the bigger spending Departments of Health, Education and Skills and Social Protection. No matter where reductions are made in the various Departments, the cuts will be painful and cause upset and there is no point in denying this. All parties have agreed that a fiscal adjustment of ¤3.5 billion is required to meet the deficit targets up to 2015. All parties have also stated how that is done is a matter of political choice, as Senator Marc MacSharry said. At times of normal budgets it might well be the case that it is a matter of political choice but for a country in a programme, the choices are limited. It must be pointed out - I have no doubt that Senator Darragh O'Brien will read this later - that the troika has stated a measure can be substituted for another if it will raise the same amount of money. However, the same people who point this out usually fail to point to the tiny caveat attached to the end of that sentence, that is, if agreement can be reached with the troika.