Tax breaks under review for budget

TAX BREAK schemes are under investigation as part of preparations for dealing with the crisis in the economy through the budget next month, Taoiseach Brian Cowen indicated yesterday.

He faced Opposition accusations that the Government is "burnt out, lazy and incompetent".

During questions in the Dáil, Labour leader Eamon Gilmore claimed that 300 jobs had been lost every day since Mr Cowen became Taoiseach.

Fine Gael leader Enda Kenny accused him of "gross political cowardice" for refusing a two-day debate on the economy.

The Taoiseach, however, defending the Government's handling of the economy, claimed the Opposition was "unbalanced" in its criticisms and said that the budget next month - "which is the most important decision being made" - showed the seriousness of the Government's intent to take decisions necessary to "meet the new economic situation".

In three weeks, the budget would "set out clearly" what the issues of expenditure would have to be. It was clear, he said, that "economies must be made", and that the Government had to deal with priorities in the capital programme and "what the issues will be regarding the protection of tax breaks".

However, Mr Kenny said that since the Dáil recess the economic situation had "changed utterly", with unemployment up 42 per cent, the budget deficit increased from €3 billion to €5 billion, and the stockmarket down 45 per cent.

He was "actually amused to hear the Taoiseach say that really we have to buckle down here and cut out wasting public money". He highlighted the waste noted in the Comptroller & Auditor General's report and said Mr Cowen was the minister for finance who presided over "this gross wastage of public money". He asked what was being done "to ensure your successor is not going to fall into the same financial slurry pit".

The Taoiseach said the C & AG's report was in the context of "revenue of over €50 billion and indeed the spending of over €50 billion".

Mr Gilmore said that "since you became Taoiseach about 140 days ago, 45,628 people have lost their jobs in this country", or about 300 a day. People were losing their jobs so fast that some 30,000 people were waiting for social welfare payments to be processed.

He said it was "quite clear that the Government hasn't taken a single new initiative in the 10 or 11 weeks since the Dáil rose to address the problem of people losing their jobs in this economy".

Defending the Government's handling of the economy, Mr Cowen said the Government continued to work with the job creation agencies, there had been foreign direct investment of €1 billion so far this year and the Government's decisions would "crystallise" on budget day.

A vote to allow a full debate on the economy was rejected by 78 to 68 votes.