The Government has a “serious fight on its hands” to get the Lisbon Treaty passed next month, according to Fine Gael leader Enda Kenny.
Speaking on RTÉ radio this morning, Mr Kenny said people were "distraught, offended and hurt" by decisions made by Government during the year and could use the Lisbon referendum to punish them.
"I am at pains to say strongly, to get it across to people, the importance of the Lisbon Treaty. Failure in Lisbon would bring about an increase in borrowing rates and that would have a detrimental affect on us," he said. "We will co-operate with the yes campaign, but it is not going to be easy. We have a serious fight on our hands."
Asked about the mood of the public, Mr Kenny said there was confusion about the financial situation facing the country. There is also a real fear that the Government was preparing a "hit list" of further taxes.
"What people are looking for is a degree of rebuilding trust, of certainty, of hope, of competence and of confidence. People now recognise the failure of Government to act in terms of reform, of building efficiency, and of getting value for money during times when Ireland had a lot of money," he said.
Commenting on the Commission on Taxation report, Mr Kenny said it "deserved serious consideration." He said Fine Gael would "feed it into their plans for running the country."
Asked if he would rule any of the recommendations in our out, he said he was not in favour of a property tax because people had "paid so much already." He said he was in favour of a carbon tax, would tighten up tax dodges and that the issue of taxing child benefit "deserved serious consideration."
Mr Kenny said he hoped his party could get Nama "fundamentally changed" before it went ahead.
Asked about his own personal popularity which lags behind that of his party and Labour leader Eamon Gilmore, Mr Kenny said he was "working his ass off" to get his party into Government.
"I lead from the front and shove from the back. I'm happy with the impetus behind Fine Gael," he said.
Fine Gael is continuing its parliamentary party meeting in Cavan today, with proceedings expected to be dominated by the National Asset Management Agency (Nama) and healthcare.