Budget will bring targeted relief, says Bruton

The Budget will seek to bring "targeted relief" to taxpayers that will support long-term growth in the economy, the Minister for Jobs, Enterprise and Innovation Richard Bruton said today.

Speaking at the announcement of 90 new jobs in Dublin for French software group Sidetrade, Mr Bruton acknowledged that "the public at large" needs to be given a reason to regain "confidence". He was speaking before travelling to Cork for Fine Gael's annual think-in, which will closely consider the Budget.

Mr Bruton rebuffed suggestions that the Taoiseach, Enda Kenny, had imposed a "gagging order" on his Ministers but he said everybody understood that budget negotiations needed to remain "in house".

“What people want so see is that we are going to embed this recovery. We’re going to make prudent decisions that don’t go down the tax and spend route which has been urged by many of our opponents.”

Now that there was “a little bit of leeway” in the public finances, the Government would seek to use that flexibility to promote employment growth, he said.

“Clearly bringing down what we would call the tax wedge - between what employers pay and what workers get - that’s an important way to promote employment,” Mr Bruton said.

“People want to see some return for the sacrifices they have made,” he said, adding that families “want to see some sign that there is a route ahead that will bring relief”.

He claimed that the Government’s strategy of avoiding income tax increases while introducing new taxes such as water charges and property levies elsewhere had proven its success in the protection and creation of jobs. This was contrary to the expectations of some, he said.

“Many of the begrudgers would have said that they approach we were taking wasn’t going to create employment. Had we followed the views of others, for example, the Pension Reserve Fund would now have been spent in one last stimulus in the first year.”

Instead, he pointed out, it was being used to fund initiatives such as the Strategic Investment Fund for SMEs.