TAOISEACH BRIAN Cowen has told the Fianna Fáil parliamentary party that €15 billion in savings will be needed over the next five years.
Mr Cowen outlined the grave economic situation facing the State during a meeting that lasted five hours. Some 94 TDs and Senators attended.
A number of those present said Mr Cowen made a very direct, straightforward presentation, without giving specifics of the cost-cutting package the Government will propose to the social partners.
Speaking afterwards, Government Chief Whip Pat Carey said the Taoiseach won very strong support for the approach being taken to get the economy back on track.
The chief whip also confirmed that cuts in salaries for TDs and Senators will form part of the overall package to be announced in the next week.
“That issue was raised and obviously the whole issue of public service pay included members of the Oireachtas.”
Several TDs and Senators who spoke at the meeting urged Mr Cowen to make a “state of the nation” type address directly to the public. Kildare South TD Seán O’Fearghail said it had been raised by at least six members of the parliamentary party, principally Senator Geraldine Feeney.
“We felt that if he spoke to the country in the same way that he had spoken to us during the parliamentary party meeting, it would have a very positive effect,” he said.
Mr Carey said Mr Cowen will be addressing the Dáil tomorrow and Thursday as part of the debate on the economy.
“I expect that he will lead the debate and outline his thinking in relation to it. As to a specific address in which he is talking to the people directly, I suspect that is something that the Taoiseach will contemplate but he certainly made no commitment [at the meeting],” he said.
There was general agreement among TDs and Senators that the mood of the meeting was sober, downbeat and realistic. “We know that Ireland is part of the global economic downturn. We are going to take whatever measures are necessary to restore Ireland,” said Mr Carey.
The Taoiseach gave a speech outlining the general economic situation but did not give any specific details on the Government’s approach to negotiations.
The meeting was also attended by senior members of the Cabinet including Minister for Finance Brian Lenihan. His contributions were said to be limited.
South Tipperary TD Mattie McGrath said that he now felt he had “a better understanding of what the Taoiseach and the Cabinet are about”.
Another senior backbench TD said that Mr Cowen’s contribution did help build up internal confidence.
A number of those present at the meeting criticised mooted proposals to impose property taxes on second homes. One TD said there was some concern at the meeting about the “additional hardship” that such a tax might cause were it to be introduced.
However, Mr Carey did not agree that there was widespread opposition, saying there were mixed views on the proposal.
“Many made the point that people have bought second homes not because they are speculators but for very good reasons, that it may form part of their pension.
“It was not uniform by any means. There was divided opinion in relation to it,” he said.
Earlier in the day, Minister for Justice Dermot Ahern was asked about the possibility of a property tax. He told reporters the Government did not want “to increase taxes on labour, because any economist worth his salt will tell you that that’s the wrong thing to do. And that’s what, unfortunately, previous governments over the years did in Ireland.
“So the last thing we would want to touch is income tax.
“It’s amazing to think that 50 per cent of all tax collected is collected from 6½ per cent of taxpayers.
“We have to look at other ways of raising our resources, and we will do that over the next couple of years,” he said.
