Fine Gael will not back the Government's plan to save €3 billion in next December’s budget, the party’s finance spokesman Richard Bruton has said.
The Fine Gael deputy leader told delegates at the party's national conference this morning that €2 billion in cuts should be imposed in the next budget.
This indicates a marked departure in Fine Gael policy from the conditional support it gave to the overall figure of €4 billion in cuts proposed by the Government in last December's budget. However, the party did differ from the Government in the detail of where the cuts should be made.
In addition, Mr Bruton said all the €2 billion it seeks for the budget should come from current spending.
This contrasts with the Government proposition, which has identified only €1 billion in cuts on the current expenditure side, with the balance of €2 billion coming from cuts in capital spending. Many of the required savings in current savings would be similar to those recommended in a report last year by the group chaired by economist Colm McCarthy.
The other major announcement made by Mr Bruton was a commitment by Fine Gael to denationalise Anglo Irish Bank and hand it back to its creditors.
"There is no sound moral or economic case for asking ordinary Irish families to take responsibility for the repayment of debts that Anglo Irish built up under Seán Fitzpatrick, he said. "No other country in the world would dream of squandering its national wealth on a bank that has no future or systemic
importance to its economy."
Mr Bruton based his argument for less cuts on the need to create jobs, avoid cuts in investment, and also avoid tax increases.
"Ireland would be better with a reforming budget that takes €2 billion out of the cost of running government in 2011 and sets out a clear path for even greater cost savings in future years, but which avoids further cuts in investment or tax increase," he said.
"This is the internationally recognised formula for recovery, job creation and sustainable public finances. It may be the harder path politically but it would make the necessary room for the policies to protect jobs and open up new Irish enterprises."
Mr Bruton was speaking at a session on jobs and enterprise.
The party's enterprise spokesman Leo Varadkar proposed a plan called Work Sharre to save 10,000 vulnerable jobs through the creative use of the social welfare system. He also proposed the creation of 28,000 internships and training places, which would encourage people back to jobs.
Energy spokesman Simon Coveney outlined details of the New Era plan which he said would create more than 100,000 jobs by completely restructuring State facilities.
He said that it could be done with an €18 billion investment. Half of this would come from a new bond available to private investors. The remaining half would be raised through the National Pension Reserve funds and the sale of non-essential assets.
This would involve the privatisation of parts of Bord Gáis, ESB International and other State utility companies.
