Kenny criticises Budget of financial 'booby traps'

THE BUDGET increased the Taoiseach’s salary from 13 times the minimum wage to 14, Fine Gael leader Enda Kenny said.

He challenged Brian Cowen to say if he considered that to be “sensible, rational and equitable”.

Mr Cowen said the Taoiseach’s pay was now 45 per cent less than it was when he took office, while a Minister’s pay was up to 40 per cent less.

“That needs to be said and it needs to be done. Everything we can do to reduce the size of the Government needs to be done.”

Mr Kenny claimed the Budget was the product of an exhausted Government, and lacked conviction, confidence and compassion.

“The impact of the Fianna Fáil-Green-Independent supported Budget will consign thousands of low and middle-income families in this country to near penury, a serious financial hit, a serious drop in living standards and pressure they could never have imagine.

“It is a Budget of booby traps and landmines that will go off in these families’ houses, economically and financially, over the next 12 months.”

Mr Cowen said the Government had made decisions to ensure it had a sustainable position going forward to avoid large cuts that would otherwise have to be considered were there a failure to take action now.

“The decision of Government to put those interests of the country, and all of the people, first in making these decisions does not make them any less valid for that,” he added.

Mr Kenny said thousands of people, widows, blind people, disabled people and carers were going around their houses, possibly with no heat on, looking in despair at what the Government had done.

The Taoiseach, he added, did not have to impose such hardships on those people.

“This was not the Brian Cowen of old,” said Mr Kenny.

Challenging Fine Gael’s policies, Mr Cowen said Government’s tax changes would yield €883 million, or €1.1 billion in a full year, in income tax revenue.

He asked Mr Kenny how Fine Gael would make the €6 billion adjustment by finding another €883 million cuts over and above what were announced by the Government.

“Otherwise he is not in a position to have a budgetary strategy that is credible,” said Mr Cowen. “One either increases taxes or one cuts expenditure.”

Mr Kenny said his party’s proposals had been costed by the Department of Finance.

Mr Cowen said those costings were fine in themselves.

“The simple point I am making to him is that he is now saying that the Fine Gael party would have made an adjustment of €6 billion in yesterday’s budget without raising income tax.

“That would require further cuts in the order of €1.1 billion for the full-year effect.”

Accusing Fine Gael of putting forward figures which did not add up, Mr Cowen said the party could not have its finance spokesman Michael Noonan speaking out of both sides of his mouth.