Lenihan agrees to Labour cost-benefit plan

THE GOVERNMENT yesterday attempted to reverse a mistake made by Minister for Finance Brian Lenihan in letting through a Labour party amendment to the Finance Bill the previous day.

In the Dáil on Tuesday, Mr Lenihan had inadvertently agreed to an amendment tabled by the Labour Party finance spokeswoman Joan Burton. The amendment provided for a cost-benefit analysis of the financial impact of the Bill to be completed within a month, that would calculate the tax that had been foregone, the changes in tax revenue and expenditure, and the number of jobs that had been created.

But, yesterday the Government’s efforts to mend its hand on the mistake met with sustained opposition in the Dáil. It led to a suspension of the House and Opposition deputies accused the Government of trying to pull a “political stroke” to undo its own mistake.

Mr Lenihan said he would accept the Labour proposal for a cost-benefit analysis but said proposing a timeframe of one month for the analysis, was too short. He would introduce a proposal in the Seanad to extend the period to three months.

During the exchanges, Labour leader Eamon Gilmore told the House: “I have been 20 years in this House. I have never seen a proposal from Government to pull a procedural stroke like what is being proposed today.”

Earlier, Mr Lenihan told Labour spokeswoman Joan Burton the amendment had been accepted in error on Tuesday. Ms Burton said leas-cheann comhairle Brendan Howlin had called the amendment three times and slowly declared that it was being accepted.

Ceann comhairle Seamus Kirk said he was tied by the order of the House made earlier and was obliged to recommence the debate on the Labour amendment.

Fine Gael spokesman Richard Bruton claimed Mr Kirk was allowing the Government to rescind a formal decision taken by the House. Mr Kirk adjourned the House, ahead of the scheduled lunch break so the party whips could discuss the matter.

When the debate resumed, the Opposition accepted Mr Lenihan’s proposal to revise the amendment during the Seanad debate.