TAOISEACH BRIAN Cowen has said the emergency budget will be even tougher than anticipated, due to the steadily worsening state of the public finances. April 7th, a Tuesday, will be budget day.
Mr Cowen told Opposition leaders in the Dáil yesterday that the Department of Finance had estimated at the end of February that a gap of €4.5 billion would have to be dealt with in the budget, but the final figure could be greater.
“As the year has progressed we have seen a serious deterioration in the public finances taking place, which is mirrored by what’s happening in the international economy,” he said.
The Taoiseach was speaking after an early-morning Cabinet meeting at which Ministers were briefed by Department of Finance officials about the seriousness of the crisis in the public finances.
Describing the budgetary position as a “moving target”, Mr Cowen said it was difficult to address accurately how far the economy would contract during the year.
“It was said at budget time it would be in the region of 2 per cent, it was said in January it would be approximately 4 per cent and the indications are now that it could be 6 per cent or 6.5 per cent,” he said.
“We wish to ensure we deal with the matter for the remainder of 2009 in a way which would be seen to be credible by international markets based on the emerging figures,” said the Taoiseach.
Fine Gael leader Enda Kenny and Labour Party leader Eamon Gilmore told Mr Cowen that the Opposition parties should be briefed on the detailed figures available to Government, if he wanted their support for the tough measures ahead.
“If he expects the Opposition parties to make any kind of constructive proposals to the Minister for Finance, then the least to which we should be entitled is the range of taxation proposals and options for spending cuts being considered by ‘An Bord Snip’ and, consequently, the Department of Finance through to the Cabinet,” said Mr Kenny, who later unveiled his party’s plan to cut the number of Ministers of State and Oireachtas committees.
Mr Gilmore said the Opposition needed to have the same information from the various Government departments as that provided to the Minister for Finance.
“For example, I refer to expenditure information on education, health, the roads programme, public transport or any of the programmes and expenditures which arise. We must have access to that information, because we cannot fly blind,” he said.
However, Mr Cowen said in response that any interaction with the Opposition on the budget would be a matter for the Opposition spokespersons and he emphasised the responsibility of the Government for budgetary matters.
“We would welcome any possibility for debate or discussion in the House between now and then in a structured way that would assist the Opposition if it so wishes to contribute to an integrated packet of measures that will be necessary in terms of the fiscal and budgetary situations. The Government reserves its right and duty to make the decisions.
“If the Opposition has views it wishes to express or if the spokespersons want to interact with the Minister for Finance in a way that is consistent with this approach, we have no problem doing it,” he said.
Meanwhile, Minister for Finance Brian Lenihan last night discussed issues around the Budget with a meeting of more than 60 Fianna Fáil TDs and Senators and listened to their concerns. The parliamentary party members also held a meeting afterwards with Minister for Social and Family Affairs Mary Hanafin.