Kenny asked to outline what welfare cuts FG would make

THE TAOISEACH challenged the Fine Gael leader to say where his party would find the required social welfare savings in the budget…

THE TAOISEACH challenged the Fine Gael leader to say where his party would find the required social welfare savings in the budget.

Brian Cowen said that, in the next four weeks, Enda Kenny could indicate to a whole series of people that there were easier ways to deal with the situation.

“We await the alternative budget proposals of the Opposition and we will see how credible and sustainable they are,” he added.

Mr Kenny replied: “You will hear them . . . None of them is easy.’’ Mr Kenny again challenged Mr Cowen on possible cuts in child benefit, claiming that hundreds of thousands of families did not believe the Government when it said it wanted to be fair, open and honest.

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“They believe there is a secret plan at the heart of this and the Government is moving to cut child benefit in the December budget,” he added.

“This follows the nightmares created by the Government over the removal of the medical card for the over-70s, income levies, job losses, negative equity, increased third-level registration fees, school transport charges and a range of other measures.”

Mr Kenny urged the Taoiseach to put families at ease and at least say he was hearing the call for clarity from the Opposition.

“Will he tell us he understands the anger of people and that this one area of social welfare will be left untouched by the knife of Government on December 9th?” he added.

Mr Cowen said the Government would take all options into account in preparing for the Budget.

“It is right that we look at all options,” he added.

“In last April’s supplementary Budget, the Minister for Finance indicated that child benefit would be examined.

“The McCarthy report also made reference to it.”

Mr Cowen said that when there were limited resources, one must assist those who were most vulnerable and, perhaps, make adjustments for others on higher incomes.

Those options were being looked at, he added.

“Given the size of the adjustment which must be made, social welfare cannot be immune,” said Mr Cowen.

“We must be careful in coming to decisions in this area. We will use the time available for further discussion; we will come to our conclusions and bring those decisions to the House.”

Earlier, Mr Kenny said he recognised that adjustments and savings had to be made in the social welfare area as well as other areas, given the disastrous economic circumstances into which the State had been led by the Government.

“However, I also recognise it is possible to achieve the savings without having to resort to cutting child benefit,’’ he added.

Mr Cowen said that the scale of savings required meant that the Government had to look at areas it would not normally look at.

“The Government is conscious this is an area for careful consideration, but the deputy knows he cannot expect me to outline any aspect of the budget, particularly when decisions have not been taken,” he added.

Michael O'Regan

Michael O'Regan

Michael O’Regan is a former parliamentary correspondent of The Irish Times