MOST OF the Government's proposals were described as "headline grabbers" by Labour Party leader Eamon Gilmore.
He claimed that they appeared to be designed more to restore political confidence in the Government rather than to restore confidence in the economy.
"And the astonishing thing about this is that it says little or nothing to the 54,000 people who have lost their jobs over the past year," he added.
Mr Gilmore said what had been announced was not a plan for the economy. "It is a bit of a back of the envelope bookkeeping exercise containing some prudent measures, some of which were sought for some time by this side of the House . . . such as the dropping of ministerial pay increases," he added.
He welcomed the proposal on decentralisation, which, he said, he had recently questioned Taoiseach Brian Cowen about.
Mr Gilmore challenged Mr Cowen to say what his plan was for the economy and how to get people back to work.
Mr Cowen said the Government's exercise was not to provide an economic plan for the country.
"What we were involved in today was to try to ensure that we react responsibly and sensibly, and in as good a way as possible, to the changed situation that arose as the result of the medium exchequer returns last week," he added.
Mr Cowen said the most important way in which they could maintain levels of employment and return to potential growth rates, was to have a sustainable public finance position.
He said that the 3 per cent reduction in the public sector pay bill should yield €250 million. This would include non-recruitment in some cases.
The plan, he said, was not "regarded as a panacea", nor the ultimate answer to all of the challenges facing the State.
Mr Gilmore said he was a little surprised at the figure of €250 million.
"These figures do not add up," he said. "You tell us that you are going to save €1 billion in 2009. If the 3 per cent reduction in payroll is only €250 million, between now and the end of 2009, where on earth is the €750 million for the remainder of 2009 and the remainder of the €190 million for 2008 going to come from?" he asked.
"That does not stack up. Even at the rate that your Government is placing advertisements in television stations and newspapers and so on . . . cutting advertisements and cutting consultants and all of the other headline grabbers you have in all of these measures won't add up to €750 million in 2009, plus an extra €190 million in 2008."
Mr Gilmore suggested that the figures were a "fairy tale".
Mr Cowen replied that, "referring to official documentation", he could confirm that the figure was €250 million.
"The Department of Finance do know, you know, the figures in relation to this and what the impact is," he added.
Mr Cowen said it was not a question of introducing "dribs and drabs", adding that he had made it clear that the Government would make decisions to ensure it worked within the expenditure limits it had set.
There would be a nine-hour debate in the Dáil, he added.
The Ministers would come into the House tomorrow and would outline what contribution could be made by individual departments in respect of the efficiency savings referred to, he said.
It was a phase in a process of engagement by the Government, across all departments, for the purpose of having a budgetary strategy going into 2009 which would be sustainable and address the issues that needed to be addressed, he added.
