Paschal Mooney (Fianna Fail) | Oireachtas source

If there is one criticism that could be legitimately levelled at the Fianna Fáil-Progressive Democrats Administration up to 2007, it was that it significantly narrowed the tax base by significant reductions in taxation and hugely significant increases in social welfare payments. Narrowing the tax base and taking so many people out of it, even at a time of boom, came back to haunt that Government. The current Government has been putting forward the view, particularly in recent months, that it is going to manage the national finances prudently, but that seems to have been blown out of the water by the IMF report that is in the newspapers today raising serious concerns, which apply to all parties going into this general election, about further reductions in or erosion to the tax base. Deputy Michael McGrath, when launching the Fianna Fáil position on finance last week, made it clear that we were not going to engage in auction politics but would ensure we would act in the national interest in the matter of the financing of the State. Despite the fact we put forward proposals on easing the tax burden on those experiencing financial adversity through the USC, we believe we have taken a very prudent course. I do not believe the people will take well to the attempts by the Labour Party and Fine Gael to buy off votes in the forthcoming general election by further eroding the tax base. Who is going to pay for the services? Without a sufficiently coherent and viable tax base, who will pay for more schools, better hospital services and better services generally to help those with a disability and those who are unable to fend for themselves? I am putting this on the record because after the general election - and please God I will be back in this House - I hope I will not be saying "I told you so" in the context of a downturn in economic performance. We are on a knife edge economically. We rely on a weak euro and on dynamic UK and US economies, but international economic commentators are pointing out that the world is going into a downturn.In fact, some economists, particularly those attached to the Royal Bank of Scotland in the past few weeks, have advised investors to sell everything, including shares and bonds. They have put forward an apocalyptic scenario. I do not subscribe to that view but, then again, maybe I am something of an optimist and hoping that things will work out. I am merely putting it on the record. I would be interested in the Leader's response.