We use Google Analytics to see which pages are read and how the site is used, so we know what to improve. This only runs if you accept. See our privacy notice for details.

Dáil
‹ Leaders' Questions

Budget speculation and child benefit

Summary

Gerry Adams challenges Government leaks about the next day’s budget, particularly possible child benefit cuts, and urges higher taxes on earners over €100,000 instead. The Taoiseach declines to disclose budget details, citing economic challenges while highlighting employment, investment and improved financial indicators.

The last few days have been filled with Government-inspired leaks in the media, which are causing great concern to citizens. I have picked this up this morning in Dublin city and over the weekend in my own constituency. I note it is the Taoiseach's normal practice when asked about the budget to say that he will not comment on what may be in it. That might be fair enough if there was not so much speculation quoting Government sources. There is a responsibility on the Taoiseach to remove some of these fears. I will not take the Taoiseach through all the issues but there is a particular annoyance about Government leaks that there will be more cuts to child benefit, on top of last year's cuts and on top of cuts introduced by Fianna Fáil in its time in office. These have hit the most vulnerable parents and children hardest.

Just a few weeks ago we had the referendum to strengthen the rights of children in the Constitution. It would be an outrage if, in the wake of that constitutional amendment being passed, the Government was to attack child benefit. People want to know why the children of the State should suffer while high earners have their incomes protected. Maybe this speculation is wrong. I ask the Taoiseach to make it clear and assuage the fears of these citizens that he will not cut child benefit in this budget.

Comment on this
Enda Kenny The Taoiseach Fine Gael

First of all, I am glad Deputy Adams has been able to remove the dark shades.

Comment on this

All the better to see you, my dear.

Comment on this
Enda Kenny The Taoiseach Fine Gael

I hope the little interaction he had with the medical service has proven to be a really good success. I wish Deputy Adams well in his recovery.

Comment on this

Thank you, Taoiseach.

Comment on this
Enda Kenny The Taoiseach Fine Gael

Some of the speculation that I have been reading and hearing about in the past couple of weeks has certainly been fuelled by Deputy Adams and members of his party making outrageous claims and spinning rumours of this, that and the other.

Comment on this

The Taoiseach's own Ministers did that.

Comment on this
Enda Kenny The Taoiseach Fine Gael

Let me assure Deputy Adams that as regards tomorrow's budget, we have made no secret of the fact that our country faces a challenging time. We have never been talking about green shoots or having turned corners. Everybody knows that economically our country faces a challenging period and we are going to deal with that. Tomorrow's budget will be a further step in the direction of recovering our competitiveness, making this country an attractive location for direct investment, and the opportunities - such as they are - to stimulate our own indigenous economy by opening doors for access to credit for small and medium-sized enterprises, whereby jobs are created.

The Deputy is clearly interested in what will happen in tomorrow's budget and he asked me for clarification on one particular issue. He has less than 24 hours to go before details of the budget - not rumours, speculation or allegations - will be unveiled by the Minister for Finance and the Minister for Public Expenditure and Reform. On that occasion, the Deputy can talk on the basis of fact instead of speculation, innuendo, rumour or allegation.

Comment on this

I thank the Taoiseach for his best wishes. I can tell him that my eyes are much better and will hopefully continue to improve in the time ahead. Of course, I can wait until tomorrow but these rumours and speculation in the media are quoting Government sources. That is what is causing public concern. The only way in which I can interpret the Taoiseach's answer is that he is confirming that he will cut child benefit, but I hope I am wrong.

I also want to directly address the Taoiseach's colleagues in the Labour Party. During the last election campaign, the Labour Party called on the public to vote for them to protect child benefit. The Labour leader said it was a red line issue. These posters were displayed across the State by the Labour Party.

Comment on this
Seán Barrett An Ceann Comhairle Fine Gael

No, we do not display posters in the Chamber.

Comment on this

I was wondering who took down our posters.

Comment on this

I was wondering who put them up.

Comment on this
Seán Barrett An Ceann Comhairle Fine Gael

I will not ask Deputy Adams again. Will he please obey the Chair? He knows it is out of order.

Comment on this

The Taoiseach and his Labour Party colleagues know whether child benefit will be cut.

Comment on this

Where is the Labour Party?

Comment on this

If they are not to cut it, fair play. That would be a good thing for our children, but if they are there is still time to pull back from that. I ask the Taoiseach to do that and to look again at tax increases for those earning over €100,000 because they can afford cuts. The children of the State cannot afford cuts in their benefits.

Comment on this
Enda Kenny The Taoiseach Fine Gael

Deputy Adams has again asked me for confirmation regarding issues in the budget that will be delivered tomorrow by the Ministers for Finance and Public Expenditure and Reform. Let me confirm a number of matters for him. Interest rates have fallen from 14.4% to 4.3%. A total of 20,000 jobs have been created in the private sector whereas when we took office, 300,000 jobs had been lost in the private sector.

Comment on this

What about the increases in unemployment? Businesses are closing.

Comment on this

What about child benefit?

Comment on this
Enda Kenny The Taoiseach Fine Gael

The ratings agency, Fitch, has improved the ratings status of the country.

Comment on this

What about commercial rates?

Comment on this
Enda Kenny The Taoiseach Fine Gael

Bank of Ireland raised €1 billion without a State guarantee.

Comment on this

What of the increase in pension levies?

Comment on this

Or the legislation on upward-only rent reviews?

Comment on this
Seán Barrett An Ceann Comhairle Fine Gael

Would Deputies please desist? Thank you.

Comment on this
Enda Kenny The Taoiseach Fine Gael

Moreover, Allied Irish Banks raised serious money without the State's guarantee. The ESB and Bord Gáis also did the same-----

Comment on this

They are for sale.

Comment on this
Enda Kenny The Taoiseach Fine Gael

-----in exercises that have been oversubscribed many times.

Comment on this

Their prices have risen as well. They are charging the consumer more.

Comment on this
Enda Kenny The Taoiseach Fine Gael

The sale of the analogue spectrum-----

Comment on this

A special offer.

Comment on this
Enda Kenny The Taoiseach Fine Gael

-----brought in both a significant amount of money and confirmation of signals from three international communications companies of their interest in investing in Ireland.

Comment on this

What has that to do with child benefit?

Comment on this

Time magazine.

Comment on this
Enda Kenny The Taoiseach Fine Gael

These are facts I can confirm for the Deputy. As for the details of the budget, everyone will have all the details tomorrow. As I stated, these are challenging times but this budget will build on the platform already made and moving in the right direction of dealing with our public financial problems, of creating opportunities for jobs and employment and of continuing to make Ireland competitive and attractive for foreign direct investment by organisations such as Mylan, PayPal, Apple and all those which have invested and created, and continue to create, serious job numbers here. In addition, it will pertain to a real concern shared by everyone, that is, stimulating the indigenous economy, making it easier for young people to be employed and providing opportunities in small and medium-sized enterprises to have access to credit in order that the spend can move through the economy and people can plan their lives with a greater sense of security and strategy for the times ahead. This is what the budget will be about tomorrow.

Comment on this
Seán Barrett An Ceann Comhairle Fine Gael

Thank you.

Comment on this
Enda Kenny The Taoiseach Fine Gael

The Government has tried and has worked hard to make it as fair, equitable and affordable as is possible. These things are never easy. This is a major challenge for Ireland and the budget tomorrow will be a step further in this country's exiting of the programme we are in, in retrieving our economic sovereignty and restoring the opportunity to grow our economy and to create jobs, which is in everyone's interest. The people know this. Deputy Adams should believe it is not with any great sense of satisfaction that any Minister must deliver on or to deal with hard challenges. In that sense, the Minister for Finance will spell out all the details of the budget tomorrow while the Minister for Public Expenditure and Reform will outline the spending arrangements.

Comment on this