OPPOSITION REACTION:FINE GAEL said last night it would support the budget only if it matched the one produced by the party. It ruled out abstaining in the Dáil vote to allow the budget to pass.
Labour said it would not support the budget and would not abstain in the vote. Party leader, Eamon Gilmore, also opposed the Government’s plan for a budget “adjustment” of €6 billion for next year.
Fine Gael deputy leader Dr James Reilly told reporters at Leinster House it would be wrong of him to rule out supporting the budget completely, “because if the budget produced was one that matched ours, then why would we oppose it?”
However, Dr Reilly said he believed that the budget would be different because there was no consultation with the Opposition about it.
“As I have already pointed out, the Irish people do not trust this Government . . . They have not engaged with us over the past 10 days in the greatest crisis that has affected our people.”
Dr Reilly said Fine Gael would produced its own budget, “and people can see the difference”.
Labour leader Eamon Gilmore, also speaking to reporters at Leinster House, said the strategy the Government had set out, “for example, of cutting six billion [euro] from the budget this year is one that we believe will not work, from the point of view of economic recovery. We have to now think in terms of what brings about economic recovery. Our view is an emphasis on growing the economy and on creating jobs.”
When it was put to him that Labour was “in a state of denial” in its opposition to €6 billion in cuts, given that it had been approved by the EU and the IMF, he replied: “I don’t think we have to accept that, and that is the very reason why we need to have a new government in this country, a strong government with a mandate from the people. What we have at the moment is a weak government that is being rolled over and I don’t think that is in the country’s interests.”
The argument had been made, he said, that we needed to “frontload” the cuts of €6 billion to convince the markets.
“We are now out of the markets, so who now is the six billion meant to convince or meant to impress?” he added.
Mr Gilmore said: “We are in a new situation now, where we have to look at what is in the best interests of the economy and economic growth”.
Labour justice spokesman Pat Rabbitte said last night he found it difficult to reconcile what John Gormley had said with what the Taoiseach had said.
“Mr Gormley seems to be under the impression that we can enact a budget, a Finance Bill and a Social Welfare Bill by the middle of January,” he added.
“Last year, we enacted the Finance Bill on April 3rd and, on the previous year, June 3rd.”
The Taoiseach, he added, had committed to dissolving the Dáil after the Finance Bill was enacted. “That will bring us into the summer recess, with all that implies.”
Sinn Féin’s Dáil leader Caoimhghín Ó Caoláin, said Mr Gormley’s announcement meant that “the Greens are to cut and run, while denying the people an immediate general election”.
Mr Ó Caoláin said his party would be the only one standing as the real alternative to the consensus for cuts.
Socialist Party MEP Joe Higgins accused the Green Party of “cynical posturing”.