Government takes bashing for hidden 'pain' of Budget 2003

Opposition parties fiercely attacked the Government in the Dáil today by in a debate on the Budget announced yesterday by the…

Opposition parties fiercely attacked the Government in the Dáil today by in a debate on the Budget announced yesterday by the Minister for Finance.

Meanwhile, Mr Jack O'Connor of SIPTU and Mr David Begg of the Irish Congress of Trade unions warned this evening that the Budget was likely to take inflation above five per cent, and unless employers were prepared to "cough up" significant pay rises, workers would be left considerablyworse off.

Mr Begg said the Budget had worsened the prospect of a partnership deal being agreed.

Fine Gael leader Mr Enda Kenny accused Mr McCreevy of hiding the "pain" of Budget 2003, saying "those with no power, have been chosen to pay. Again".

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"This is not the plan for the finances of a great nation. This is the juggling of small change between jars we might expect of someone operating a rundown boarding house," Mr Kenny said.

"Failure to index tax credits and tax bands will cost ordinary taxpayers €502 million next year. That is €400 for every household.

"Add another €50 million for the cost of using your cheque book or credit card".

Mr Kenny continued: "It was easy for the Minister to announce that he was increasing the 12½ per cent VAT rate to 13½ per cent. It would have been harder for him to explain its impact - so he didn't. Its impact will be felt in every home in the country - irrespective of means".

Mr Kenny said the Budget is "a vivid, livid example of how soulless, how characterless, how gutless, how bankrupt of decency and morality" the Government is.

"Fianna Fáil and the PDs used and abused the public purse - the people's money - to bankroll their political survival," he said.

Labour Party leader Mr Pat Rabbitte accused the Minister for Finance of being "the most irresponsible holder of that office in the history of the state" when the contents of the budget were debated in the Dáil today.

He also accused the Government of the "most serious abuse of power by a government in the history of this State" and said that "the borrowing that is now a reality is not the result of prudent decision making, it is the result of a disgraceful sustained massive exercise in vote buying".

He concluded: "Social welfare recipients get 30 cents, it wouldn't buy a box of matches - this is a matchbox budget".

Mr Dan Boyle of the Green Party said yesterday Mr McCreevy and the Government were involved in the "Enronisation of the national economy".

Mr McCreevy, however, rejected criticism of the Budget in an interview on RTE radio this morning. "There is always going to be complaints, you have to ride out that," he said.

He denied being worried that the Budget would dampen down the economy at a time when it needs an uplift.

He said it "was framed against the background of the current economic climate."

"I wouldn't like to give the impression that public finances are out of control despite all the 'hoo-ha' and stuff that has been written throughout the year," Mr McCreevy said.

The Tánaiste, Ms Harney, also defended Mr McCreevy's Budget on RTÉ radio earlier. Ms Harney said the sound management of the public finances was essential at this stage and overall it was a balanced and responsible budget.

The Department of Social Welfare has set up a freefone service to deal with Budget enquiries. It will operate from 10.00 a.m. to 5.00 p.m. today and tomorrow.