Kenny warns Ahern against give-away budget

Fine Gael leader Enda Kenny told the Dáil today he was "wary" of a "big budget bribe" by the Government in December ahead of …

Fine Gael leader Enda Kenny told the Dáil today he was "wary" of a "big budget bribe" by the Government in December ahead of a General Election next year.

Fine Gael leader Enda Kenny
Fine Gael leader Enda Kenny

But if the Government tries to bribe voters with a give-away Budget, it will be the worst Government money can buy, he said.

Mr Kenny said he feared that booming public finances would give the Minister for Finance Brian Cowen an extra €2 billion to spend in 2007.

A joint Fine Gael and Labour motion calling for a General Election before the expected May 2007 date will be voted on tonight.

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Making his final appearance at Leaders' Questions before the summer recess, the Taoiseach today said the €880 million surplus recorded for the second quarter of 2006 was proof of the Government's sound management of the economy.

However Mr Kenny commented: "That makes me wary of the possibility of a big budget bribe later this year. Given that the Government will probably have more that €2 billion more than was forecast, that becomes likely."

He said that public spending jumped by 40 per cent in the year before the 2002 election.

He added: "Can I take it that the Government will concentrate on attempting to provide the best level of quality services for the public with the public's money and that it will not do as it did prior to the 2002 election and increase public spending with a view to buying votes in an attempt to get back into Government?

"If that were to happen, and given the Government's record over the past nine years, it would be the worst Government that money can buy."

Mr Kenny claimed that Mr Ahern last week quelled a mini-revolt on the backbenches and survived an abortive leadership challenge within the Progressive Democrats.

He said that the 2002 spending splurge created a hangover of stealth taxes, budget cuts and an inability to provide proper services with the people's money.

"The cost of living soared, competitiveness fell and jobs were lost in manufacturing," he added.

However Mr Ahern said: "Yesterday's figures show that an Exchequer surplus of €880 million was recorded in the second quarter of 2006. That compares to an Exchequer deficit of €594 million for the second quarter of last year.

"Due to the success of the economy, the great inward investment and the strength across the pharmaceutical, ICT and construction industries, tax yield is about €1 billion ahead of target."

The Taoiseach claimed that the economy was growing at a higher rate than anywhere else in the EU or the world.