Situation 'very challenging' - Burton

LABOUR:LABOUR PARTY finance spokeswoman Joan Burton described as "very challenging" the information provided at the first Department of Finance briefing for opposition politicians on the state of the country's finances.

Ms Burton said much of the material had been given on the condition of confidentiality, but detailed analysis and commentary about how a forecast of economic growth was being built up had been provided.

However, officials had been clear a final forecast could not be produced until early November because of uncertainty about some figures, in particular the “disappointing” income tax take.

“What they told us is very challenging,” Ms Burton said.

“They don’t expect the overall tax receipts to be too much out of line, but they are concerned, as we know, that the income tax receipts are below expectations.

“And the reason for that, of course, is that less people are actually working, and an awful lot of people have taken wage cuts.”

Ms Burton emerged from the department on Merrion Street in Dublin shortly after 11am yesterday having gone in to meet secretary general Kevin Cardiff and other officials at 8.45am.

The officials advised on discussions that had taken place with other organisations, such as the International Monetary Fund, but there had been no detailed discussion about departmental spending or promised social welfare reforms, said Ms Burton.

“Our discussions today were mainly about the macro issues of growth and also about the macro and longer-term issues of the structure of the bank bailout cost, which are to be honest pretty horrific.”

Asked by reporters if she was concerned by what she had heard at the briefing, Ms Burton replied: “Very concerned.”

However, she said she had a “positive” engagement with the officials, and believed the process of briefing the opposition parties would continue until budget day.

“They basically gave us a briefing in the same way that they would give a similar briefing to the Government on those macro issues.

“I must say the atmosphere at the talks was very positive and very workmanlike, and we would expect that to continue, and we will remain completely engaged in the process.

“I do think although there are a lot of differences among the parties in how we would approach this, our critical thing is that certainly from the Labour Party’s point of view we are determined that the country would be returned to a position where we can restore both our credibility and our credit worthiness.”

Ms Burton said there would be a “great deal of adjustment and effort and pain” but it had to be done in a way that was fair.

She claimed the Government had been giving the impression recovery would be brought about “on the backs” of low-paid and middle-income workers, and her party did not share that analysis.

She stressed a proposed meeting between Taoiseach Brian Cowen and the other party leaders was a “separate parallel process” and more information on that was required.