Bruton says Fine Gael would cut PRSI of employers

THE BUDGET should be looked on as an opportunity to make decisions strengthening the State's ability to recover and provide employment, Fine Gael finance spokesman Richard Bruton told the Dáil.

Mr Bruton said his party was proposing a cut in employers' PRSI, halving the lower rate and cutting the ordinary rate by 2 per cent.

"We will fund that by extending the PRSI ceiling and removing the allowances at the bottom," he added.

"We will also fund it by a carbon tax, and by a windfall tax in respect of energy."

Mr Bruton said this would reduce employers' costs by 2.5 per cent, and would create, according to ESRI predictions, 30,000 jobs over time.

Mr Bruton said there must be extra investment strategies instead of solely relying on the exchequer's public capital programme.

"We could attract €11 billion into investment that will be there for the long-term, and that will make us the envy of other countries, with high-speed broadband, a smart electricity grid and a water system that does not see 40 per cent of the water flushed down the drain in leakage."

Mr Bruton said he accepted that €4 billion had to be found this year, and that €1.3 billion in savings must be found in the public service pay bill.

"I accept that we cannot leave even the social welfare bill immune, although we must seek to protect as many as possible," he added.

"We must accept large swathes of the McCarthy report, particularly those aspects that emphasise rationalising agencies and reducing the administrative burden we are carrying that is not delivering at the front line."

Criticising the Government, Mr Bruton said it would have the debate portrayed as if it was about flushing out the Opposition to come up with €4 billion in cuts.

"This is the same Government that would also have us believe that it was pursuing perfectly sustainable policies until it was swept away by an international tsunami.

"It would have us believe that the property bubble and the damage it has done to this economy has nothing got to do with it."

Fine Gael leader Enda Kenny said people would say that a general election was not needed, but he would say it was.

"The people should vote for the Taoiseach, for Fine Gael or for different parties.

"They must make their minds up, and the best horse will jump the fence. Then the Government will have a mandate and the real authority to take the decisive but fair action, in the interest of social justice and equality, that is so necessary."

Mr Kenny urged the Taoiseach to listen, as he said he would, to the constructive suggestions from Fine Gael on employment and job-creation.

"In order to move our country forward we must get workers off the dole queues and back into a situation in which they can pay their taxes and contribute to our economy."

He said: "I would like to see us moving up the list again in three years' time in the fields of education and health, with our public finances back in order, and earning money for our country by exporting, as we have always been able to do."