TAOISEACH BRIAN Cowen has said his Government will come up with proposals to deal with the country’s “new economic situation” in the forthcoming Budget.
Mr Cowen said that Minister for Finance Brian Lenihan had responsibility for the preparation of the Budget, adding that Opposition criticism at this time was “entirely predictable”.
Speaking on RTÉ’s News at One programme yesterday, the Taoiseach said there had been strong rates of employment and economic growth in recent years which had “compared very favourably”, but “the Opposition contention then, of course, was that it had nothing to do with us.
“But I think the important point is that we are in a new economic situation now, and we are, in the context of our Budget preparations, going to come forward with proposals to meet that situation.
“And I think there will, of course, be entirely predictable comments by the Opposition, but the Government is focused on the job it has to do.”
Earlier this week Labour leader Eamon Gilmore had said that looking at the Taoiseach, the Minister for Finance and the Tánaiste made him “nervous for the country”; he claimed that, despite Mr Lenihan’s intelligence, he was out of his depth in the Department of Finance.
Referring to the ongoing national pay talks, the Taoiseach said he hoped that they could be concluded shortly.
“Well, what we said was that when they started their talks last Monday, that within something in the order of a week we would hope to have it resolved,” Mr Cowen said.
“And if there is unfortunately an inability to come to a conclusion by then, then the assessment is whether we can push for a conclusion over the following few days or come to a conclusion that it wouldn’t be possible . . . so that assessment hasn’t been made yet.”
During the interview Mr Cowen declined to comment on the possibility of a tax increase for higher earners, as suggested by Minister for the Environment John Gormley on Thursday.
The Green Party leader had said he had no opposition to tax increases, adding: “The wealthy should pay their way, but I have to get agreement firstly within my own party, and secondly within Government.”
Mr Cowen responded by saying: “I think the Minister for Finance has that responsibility in preparation for the Budget and I don’t think speculation in that area is helpful at this point.
“So really I don’t think there is any more significance, other than the fact that it was a personal opinion that he had. But Brian Lenihan has that responsibility and will discharge that.”
Lenihan to raise breach of budget deficit role at EU: page 16