Boyle warns of more similarly difficult and unpopular budgets

SEANAD REPORT:THE GOVERNMENT should be honest enough to admit that this was only the first of similar budgets that would be introduced in the years to come, said Dan Boyle (Green Party), deputy Government leader in the House.

"We are talking about a climate where the economy is estimated to have shrunk by 1.5 per cent this year . . . we will have a similar budget with more difficult and more unpopular decisions."

A positive aspect of the Budget was that the Government appeared finally to have embraced the notion of performance-related pay, Alex White (Lab) said. They had taken a 10 per cent cut, presumably based on their own performance in recent months. "But, really, the ultimate cut that they should be taking is not 10 per cent or even 20 per cent. It is 100 per cent," he said.

Joe O'Reilly (FG) said there was a potential for social revolution in this country if we did not deal with unemployment. Those who were losing their jobs would not be as docile as they might have been in the past.

Frances Fitzgerald (FG) said the saddest failure of the Budget was the lack of investment in our children. Instead of having any discretionary money to pay for childcare, people were being asked to bail out Brian Lenihan and the Government because of the excessive spending.

Joe O'Toole (Ind) urged the Government to re-visit some of the dafter elements which were going to upset and worry people.

David Norris (Ind) said he was perfectly happy to pay the 1 per cent levy, and 2 per cent if his income rose. However, he thought it was a vicious tax in the way it was to be applied. "The House should urge a lower limit beneath which people pay nothing at all and, if necessary, raise it for the rest of us. We can afford it."

Brian Ó Domhnaill (FF) said he welcomed the Budget as a brave and decisive step by the Minister. Eugene Regan (FG) said the impact of the Budget would be a rise in inflation, a reduction of growth and an exacerbation of the rate of unemployment. ''To my mind it's back to the bad old days of Charlie Haughey and spend-thrift governments and where the public finances are simply out of control. . .''