Politics

Budget 2016: Taoiseach urges Ministers to prioritise demands

Prudent parameters set between €1.2bn and €1.5bn and and no further, insists Kenny

The budget would be divided equally between tax cuts and expenditure increases, said the Taoiseach. Photograph: Getty Images
The budget would be divided equally between tax cuts and expenditure increases, said the Taoiseach. Photograph: Getty Images
Sarah Bardon
Tue Sept 15 2015 - 21:14

Taoiseach Enda Kenny has urged Ministers to prioritise their budget demands as he warned that the recovery would be not be jeopardised by bad decisions.

Mr Kenny said the challenge for the Government is not to succumb to the politics of popularity.

Speaking at a jobs announcement in Co Dublin on Tuesday, Mr Kenny said: “We are not going to blow the recovery here. We have set out this for everybody. We have parameters set of between €1.2 billion and €1.5 billion and that is where we are going to stay.

Raising hopes

“Ministers have got to decide on the real priorities within their departments until such time as we can grow the economy further and we can do more. We are very conscious of that.”

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Minister for Public Expenditure Brendan Howlin has already urged Ministers to stop raising hopes about possible budget measures.

Mr Howlin said the expenditure expectations that had been touted would never be realised.

Measures being examined include an increase in child benefit, a doubling of the Christmas bonus payment and a potential 2 per cent reduction in the universal social charge.

The Health Service Executive is also seeking a €1.9 billion increase in its budget. However, the Government has decided on an extra €200 million,

Mr Kenny said the budget would be divided equally between tax cuts and expenditure increases.

He insisted if that rule applied between 2000 and 2007 the “worst impact of the recession could have been mitigated if not avoided”.

The Taoiseach said the Government was entirely focused on ensuring the recovery was felt by everyone.

He claimed Fine Gael and Labour had brought the country a long way over the past four years while the Opposition parties were investing in the politics of megaphone protest.

Magicians

Mr Kenny said: “Those on the Opposition benches and there are many variations of opposition they really do excel at being political magicians – they can make money disappear but can’t bring it back again.”

The economic management council will meet on Wednesday to finalise the details of its capital plan.

Minister of State at the Department of Health Kathleen Lynch confirmed she has secured €450 million to replace or refurbish State-owned nursing homes.

The Dart Underground has been sacrificed and the Luas line to Dublin Airport will be prioritised. The package will include measures for flood relief and a five-year school-building programme.