Government accused of hypocrisy over solidarity call

LABOUR’S RÓISÍN Shortall accused the Government of hypocrisy in seeking solidarity with the social partners.

“True solidarity would target cutbacks at the top and work down from there. True solidarity would target cuts at wasted expenditure and the scandalous tax breaks that are available for the better off,” she said.

“Why should anyone take a pay cut when they see top banking officials and businessmen engaging in dodgy deals, threatening the very basis of our economy and getting away with it?” Ms Shortall referred to “top public servants getting large bonuses and others receiving golden handshakes and plum pensions after they have been forced to resign their positions”.

She added that “every cent invested in the National Pensions Reserve Fund last year, all €1.69 billion of it, was lost on the stock markets while the fund managers take over €20 million in fees”.

Michael Kennedy (FF, Dublin North) claimed that the negativity emanating from the House discouraged people from spending.

“Yes, we need to cut extravagance but we must encourage people who have a disposable income to avail of the good value now pertaining in goods and services,” he added. “Why not have the odd meal out in a restaurant? Why not have the odd break in an Irish hotel? Why not carry out the renovation to the house?”

Michael Ring (FG, Mayo) suggested the introduction of a €10,000 grant for young couples and first-time buyers.

He said that there were currently 70,000 unoccupied houses. If the Government was to receive the 13 per cent VAT on them, it would amount to revenue of about €2.7 billion.

Finian McGrath (Independent, Dublin North Central) said it was time for patriotism and tough decisions in the national interest. “However, tough decisions and patriotism do not include hammering senior citizens, the disabled, the sick and young children,” he added.

He suggested that an employer’s PRSI exemption should apply to businesses which took on extra staff this year. “We should introduce a freeze on commercial rates and other State charges for small businesses. Recently, Dublin City Council blinked on this issue,” said Mr McGrath. “We should seriously consider making a major investment in training schemes for the unemployed.”

Tom Sheahan (FG, Kerry South) said that the speculative demand for housing was pointed out to the Government in the Bacon report of June 2000. “We are having this debate because of the way the banks carried out their business and the development that took place that created the bubble,” said Mr Sheahan.

Irish banks had lent money primarily to Irish builders and developers for commercial developments and housing. These were hugely influenced by Government tax policy. “Too many holiday homes, hotels and retail developments were constructed and many of these had a negative impact on the communities in which they were built,” he said.