Taxation and public expenditure
Senator Barrett argues that rising taxation and largely unchanged current expenditure place the full burden of fiscal adjustment on taxpayers; Senator Keane supports a more constructive economic debate.
In today’s Irish Independent it is pointed out that in the first nine months of the year taxation rose from €26.1 billion to €28.5 billion. I make that a rise of approximately 9.2%. At the same time current Government expenditure rose by €125 million. Those numbers are extremely serious in the context of the Leader organising pre-budget debates.
It means the entire burden of adjusting the public finances is being borne by taxpayers and that nothing has happened on the expenditure side. The rest of the media would make one think there were daily reductions in public expenditures but the fact is the burden is being borne entirely by the taxpayer. That gives the consumer the gloom Senator Byrne just mentioned.
Nine months is about half the term of office of the current Government. We need to discuss the balance of continuing to increase taxes, depressing the market economy, consumer spending, and losing jobs in wholesaling and retailing, or addressing some of the public expenditure issues. Will the Leader ensure our budget debate is balanced around this issue, rather than what looks like a very one-sided approach, as far as taxpayers have heretofore been concerned?
Comment on this
I refer to the issue of having a serious debate in the Seanad. If we are to do the country a service we should draw attention to some facts rather than give criticisms and negative points - not about the Government but about the country in general. Every time a politician stands up people listen on an economic level. I congratulate Senator Barrett who always brings facts and figures to the Seanad. This should happen whenever there is positive news in the country, when the Exchequer publishes figures that should be repeated, rather than noting every figure the Government or anybody else puts out. The Exchequer figures published only yesterday by the Department of Finance, show the tax take for the first nine months to be €26 billion. In the period January to September more was paid in taxes and VAT than was expected. That is a good news story for this country and is one to give to the troika. It shows that the current year figures are performing ahead of target. Corporation tax intake was 11% higher than originally specified - also a good news story. That is what we should speak about for the sake of the country. We want to tell companies to come to this country. The corporation tax is good for the country and every other country in Europe is fighting against us. Let us stand up for ourselves and say we are a good country.
I refer to the criticism of the Department of Health. We have heard this time and again. I heard it when I was a member of a different party and I took it then. I will take it now, too, but much of it is far-fetched. When I was a councillor in Rathfarnham I went to business people and to the Holy Ghost Fathers and asked them if they had a site for a primary care centre. I asked myself who else would do this if politicians did not. Business people are intent on making money - how can we help them? We will turn business people off for life from helping anybody to build a primary care centre. I got a site in Rathfarnham and am delighted to say there will be a primary care centre there although I do not know whether it will be on the Augustinian site, a certain business man's site or a third site. There are three sites and I do not know which will be the one but, by hell, I was going to go out and ask where such sites were. I say to every politician to go out and look for sites.