PEOPLE IN employment would be almost twice as badly off under Labour, Taoiseach Brian Cowen insisted in the Dáil.

Mr Cowen was responding to Labour leader Eamon Gilmore during Opposition Leaders’ Questions in advance of the announcement of yesterday’s Budget.

“The level of impact on working families from the Labour Party’s proposals would be almost double what we are suggesting because of the size of the tax package being proposed,” said the Taoiseach.

The Labour view, he said, was not to go ahead with the outline fiscal correction, and that there be an adjustment of €4.5 billion next year, €2.5 billion of which was to be raised through taxes.

Mr Gilmore had pressed the Taoiseach to say if he had any concerns that €6 billion in cuts posed a danger to the prospects for economy and growth in the State.

Mr Cowen accused Labour of constantly associating the need for a financial correction with the need to repair the banking system. It was a fact that if there was never a banking crisis, there would be a need to address public finances.

Mr Gilmore said if the Government had paid as much attention to what Labour had said over the past three years, the State would not be in the mess it was in.

Mr Cowen said he would be taking a keen interest in Labour’s policy positions, “as the people get an opportunity to see how much there is behind what you have to say”.