Budget built around 'false accounting' - Labour

The Minister for Finance is now the "Fabien Barthez of the Government" following the unveiling of his latest Budget, the Labour Party said today.

Labour's finance spokesman, Mr Derek McDowell likened Mr McCreevy to Barthez, the error-prone Manchester United goalkeeper, and said Budget 2002 was a lie built around 'false accounting'.

He said Mr Charlie McCreevy plans taking €600 million from the Social Insurance Fund, established for the pensions of Irish workers and employers.

Mr McDowell told the Dáil this money could not be spent. "This money belongs to the pensioners of this country. It does not belong to Fianna Fáil. Legally under the 1993 Act which established this fund that money cannot be spent," said Mr McDowell.

He said the Minister could not tell the lie that he did not have to borrow because the full funding deficit of €2,347 million would have to be dealt with next year.

"That the minister has managed to turn a €3,200 million into a €600 million deficit is flabber-gasting. This collapse is not just because of September 11th or foot-and-mouth. It’s about mismanagement and the way this minister has lost the plot," said Mr McDowell.

Mr McDowell said the problems were as a result of the Minister for Finance "tearing the guts out" of the tax system.

"I believe he has cut taxes by too much and spent too little on public spending," added Mr McDowell.

The Green Party described Mr McCreevy’s budget as ‘an environmental disaster’ and accused him of not addressing the deteriorating environment, traffic gridlock social housing, pollution and public transport issues.

Green Party Leader, Mr Trevor Sargent said: "although old age pensions and social welfare payments have been increased the overall cumulative effect over the last four years means that, because of high inflation figures, social welfare recipients have not received the proportionate increase given to other wage earners.

An opportunity to take minimum wage earners out of the tax net had been ignored, he added.

"Despite increases in capital expenditure in the provision of child care infrastructure, government supports for current expenditure, especially in community based childcare facilities, remains poor. This is an area that should have been addressed in this Budget," he added.