Services 'impossible' without funds

PROVIDING SERVICES greatly in excess of available funding was the ultimate contradiction, Taoiseach Brian Cowen said. “It is not possible to do that,” he added.

Mr Cowen said that, thankfully, as a result of policies pursued by the Government in the good times, the debt was reduced and head room provided to take on greater indebtedness as a financial adjustment was made.

“We see other countries that do not have that head room being obliged to make even more serious decisions, which are providing for real cutbacks in services across the board,” he said.

Sinn Féin Dáil leader Caoimhghín Ó Caoláin said he accepted that these were difficult and challenging times and whoever was in the Taoiseach’s seat would have to face them. But there were other ways of facing them.

“Again, would it not have been wiser to have spread the pain over a greater period of time and, thereby, lessen the impact?” he asked.

Mr Cowen said: “How long does the deputy think it is sustainable to be spending €50 billion with an income of €32 billion? How long does he think one can maintain that and expect to be funded at a time when markets are so volatile?”

Fine Gael leader Enda Kenny said the Taoiseach should recognise that the two banking reports indicated that 75 per cent of the crisis was home-grown.

“He does not refer to that very often,” Mr Kenny added.

Earlier, Mr Cowen accused Opposition leaders of portraying the “fiction” that services could be maintained “on the basis of existing service delivery arrangements”.

He added that the “status quo plus” was not an option.

Labour leader Eamon Gilmore asked him what he meant by the phrase, and suggested that the standing ovation at the Fianna Fáil parliamentary party meeting had gone to his head.

Mr Cowen said: “The fact that the deputy does not have the responsibility to deliver the services enables him to have the luxury of talking out of both sides of his mouth every day of the week and getting away with it.”