Budget philosophy is expediency, says Kenny

The Budget is based on the political needs of the Government rather than the social needs of the people or the economic needs of the State, the Fine Gael leader has said.

Mr Enda Kenny described the annual financial statement as "neither socialist nor left-wing and it is not about caring and sharing. Its philosophy is expediency alone."

The Mayo TD said it was "driven by the necessity to respond to the verdict of the people" in the local elections. "It is at best a catch-up Budget, a reluctant and rueful effort to address gross Government-generated inequality."

He was, however, "pleased" for people who had the promise of a little comfort at Christmas, and for mothers who deprived themselves of food so their children could enjoy Santa's largesse, and for people with a disability and for people on the minimum wage.

The Fine Gael leader also welcomed the review of tax shelters, but "individuals have another year to finalise arrangements, depending on which breaks they avail of", he said.

Socialist TD Mr Joe Higgins said the Taoiseach had been "throwing shapes" at multi-millionaire tax-dodgers, hours after he had "merrily waved them on their tax-dodging activities for another 12 months".

Mr Ahern had defended them and "more or less argued that these people had to be bribed to stay in this country and be good enough to create jobs".

He asked would the review "include those multi-millionaires who jet and helicopter their way from tax exile to tug the Taoiseach's sleeve, when, like an Arabian prince, he sets up his tent at the Galway Races each year".

Ms Liz O'Donnell (PD, Dublin South) welcomed the review of the tax incentives schemes and said it was disingenuous to label them all negatively. Some were done for good reasons and were successful. She also said the Budget demonstrated that "the Government is in no way changing course".

Elements of the Budget represented "the brass neck of Fianna Fáil, which for once has outweighed the cold heart of the Progressive Democrats", Labour leader Mr Pat Rabbitte said.

It was "untenable" to argue that the division in society could be laid solely at the door of the former minister, Mr Charlie McCreevy.

Mr Rabbitte did, however, pay tribute to the new Minister for Finance, Mr Cowen, some of whose initiatives were a "serious effort to repair damage".

He believed Mr Cowen "is in part genuinely motivated by a more traditional republican position than that which motivated his former colleague, and by a deeper belief in fairness and equality".

He hit out at the Taoiseach's statement that the "savage 16" social welfare cuts had been addressed. Mr Rabbitte said that of the 16 "six have been amended, two have been partially reversed and eight remain untouched".

Green Party leader Mr Trevor Sargent said the Minister for Finance was "focusing on the Elastoplast approach to trying to minimise the outrage that has been caused by previous budgets".

Mr Caoimhghín Ó Caoláin (SF, Cavan-Monaghan) welcomed the measures for people with disabilities but warned that their implementation "will need to be monitored carefully, especially against the failure, yet again, of the Government to deliver rights-based disability legislation".