Budget austerity and economic management
Deputy Adams warned that Budget 2014 could deepen hardship for low- and middle-income families and questioned the fairness of austerity. The Taoiseach defended the Government’s economic strategy, saying it had restored market access, reduced borrowing costs and retained collective Cabinet responsibility rather than leaving decisions to the Economic Management Council.
The challenge facing the Government and our country is to continue on the steady path that the Government has plotted and our Minister for Finance has followed, to keep our economy in order, to provide opportunities for job creation and therefore economic growth, to take our country, through this budget, out of the bailout and give us a chance to restore our economic independence, and to give an opportunity to the many young people around the country, some of whom are in the Gallery today. These things matter. That is why we intend in the deliberations around the budget to be as fair and equitable as possible and to use whatever flexibility is available to us to continue essential services, look after the vulnerable and provide opportunities for job creation.
Comment on this
I agree with the Taoiseach about the last Government. Tá ceist shoiléir ann. Cad é an difear idir an Rialtas deiridh agus an Rialtas seo? I also agree that one should not believe everything written in newspapers. I know that from personal experience. I can see what is written in the Fine Gael-Labour Party programme for Government, which promised to build a fair, socially inclusive and equal society. I can also read what was said in the Economic and Social Research Institute, ESRI, report which stated that the last two budgets were the most unfair since the start of the crisis. In 2012 and 2013, the Government's budgets made low and middle-income families pay for the crisis while leaving those with enormous wealth relatively untouched. Why not introduce a wealth tax or a third band of income tax for high earners? That would be fair.
The Taoiseach talked about fairness. Why not ring-fence education and health spending and invest in job creation? That would make social and economic sense. The truth is that austerity is not working, except for the elite.
The Taoiseach's answer was not clear. Is the Economic Management Council meeting today? Will the Taoiseach try to give some assurance to the people listening to us that budget 2014 will protect low and middle income families and place the burden on those who can pay? In other words, those who can pay more, should pay more.
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Yes, the Economic Management Council is meeting today and now that I have an opportunity, I refute the myth and the allegations surrounding the council that it is some sort of quartet that makes all decisions for the Government.
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Is it three? Is the Taoiseach denying there are four?
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That is nothing other than a myth being used by people who want to put forward the proposition that there is some sort of autocratic, dictatorial body. The Constitution which I defend -----
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The Taoiseach has obliterated all of the others.
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----- means that the Government has collective responsibility for budgets and that it is accountable to this House.
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How did the book launch go last night?
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It is not accountable to the EMC, a facility to streamline measures for consideration and decision by the Government. The Cabinet has collective responsibility and meets in full.
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To convince them. Ministers do not have much to say.
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Deputy Gerry Adams asked what was different. That is a legitimate question, but sometimes Members do not want to hear the answer. What is different is that we are not blocked out of the international markets. Our integrity is not in shreds; our reputation has been restored; interest rates on international markets are not 15%; we have dealt with the promissory note, got interest rate reductions and loan maturity extensions. These are all matters that are important to the economy. Also, during our Presidency, driven by the Minister for Finance, the questions of banking union, capital directives, supervision and supervisory requirements were all dealt with. These are in place as we move towards dealing with further issues, with support from our European colleagues. That is what is different. The confidence that is palpable all over the country, felt at the ploughing championships which the Deputy attended, is evidence of the people believing their country has come through a very rough time and that it is making progress.
The Deputy will not have heard anybody on this side of the House talking about green shoots or having turned corners or saying we are out of the mess. We still face a series of challenges, but we are focused on the country, the economy and the people. The specifics of the budget will be decided by the Cabinet in toto when it sits around the table. I confirm this as fact, despite what the Deputy may hear from some of those on his left hand side or what he may read.