Ahern says Budget is part of three-year strategy

The Taoiseach launched a vigorous defence of the Budget at the weekend

The Taoiseach launched a vigorous defence of the Budget at the weekend. Mr Ahern said only taxation for two-income households had been reported in detail in the media. "There has been little emphasis on the many welfare increases and the changes on the business side. In all, the State is giving £1.5 billion back to the taxpayers."

He said the Minister for Finance, Mr McCreevy, had emphasised that this was a three-year strategy. "The Government is trying to deal with the huge inequities and anomalies which discriminate against single people and drive even those among them under the average industrial wage into the higher rate of tax. We are also trying to redress the discrimination in the tax and PRSI area against women participating in the workforce.

"But the Minister also emphasised that over that three-year period, measures would be introduced to deal with carers in the home."

The Taoiseach was speaking in Longford, where he attended the annual conference of Ogra Fianna Fail. Addressing 600 delegates, he attacked the Opposition response to the Budget, claiming it had deliberately misled people about its provisions.

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"The Budget contains the largest personal taxation package ever in the history of the State. It means that a single person on an average industrial wage will see their take-home pay rise by £20 per week.

"It tackles the fact that the existing tax system discriminates heavily against single people, even below the average industrial wage. The single band is increased from £14,000 to £17,000 and no single person on an income of £110 per week will pay any tax on their income.

"Contrary to everything the Opposition say, this Budget does not penalise single-income married couples. In fact the Budget delivers amongst the biggest gains ever for single-income married couples. In the case of couples on one income with two children the gains are: £10 per week where the salary is £17,000; £11 per week where the salary is £20,000; £12 per week where the salary is £25,000."

In addition, the national development plan provided for an investment of over £40 billion in the next seven years, Mr Ahern said . "This is investment on a scale never before seen in our history. The plan aims to keep this economy at the top of the world league for competitiveness. It will help thousands of people into jobs and give us the highest level of employment ever in our history."

On the North he said: "The stage is set for democratic politics, public service and justice to take hold in a new way in our country. We know that consolidating the institutions and making them work will not be easy, and there are other serious hurdles to be overcome. But the overwhelming wish of everyone is to move one, and make the democratic system work.

"We will now enter a new century on a different footing that takes us out of the trenches and away from the political no-man's land. The democratically mandated support for peace from all sections of our people, allied to the new institutions, is our best guarantee of permanent peace.

"Peace in Ireland will also promote prosperity North and South and help us in the task of eliminating poverty. For the first time, all Irish people can see a new political framework, which promises full participation, justice and equality for all."

Michael O'Regan

Michael O'Regan

Michael O’Regan is a former parliamentary correspondent of The Irish Times