The big failing of Budget 2000 was the Minister for Finance's inability, despite almost unlimited resources, to reform the taxation system so as to further growth in the economy and lay the foundation for a satisfactory wage agreement, Fine Gael's finance spokesman claimed.
Speaking during the Finance Bill, Mr Michael Noonan said there was no doubt that the rate of inflation influenced the level of wages which workers were prepared to accept.
"The Minister's ineptitude by not giving adequate tax relief to low-paid workers and by increasing the consumer price index by almost 1 per cent in raising the excise on 20 cigarettes by 50 per cent has resulted in a higher nominal wage increase than one would have expected", he said.
"Inflation in indigenous service industries is now at 6 per cent, and it is this inflation - the price of servicing a car, the cost of an electrician or a plumber, the price of a haircut, increasing costs in pubs and restaurants - which is impacting on wage demands."
The Minister, Mr McCreevy, defended his approach to the standard rate tax band proposal and said that change often invited controversy. "The Government is convinced that reform of the tax bands is the way we must proceed to meet the changing conditions in our society both in terms of the new labour market situation and the reality of the position in many households where both spouses are earning income."
Labour's finance spokesman, Mr Derek McDowell, said that the Minister could have introduced a Budget which kept everyone happy as well as laying the foundations for a successor agreement to Partnership 2000.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/MOENYACS6VA77KV7ZXJ7HWR6UM.png)