THE BUDGET for 2012 will be unveiled in the Dáil over two days by two different Ministers. Announcing what is predicted to be a very severe budget in two major Government presentations is an unexpected break with tradition.
The budget cuts in public spending will be outlined by Minister for Public Expenditure and Reform Brendan Howlin on Monday week. Then Minister for Finance Michael Noonan will detail the budget taxation changes the following day.
The Dáil, which does not normally sit on Monday, is being convened on December 5th when Mr Howlin will outline what a Department of Finance spokeswoman described as “the expenditure side”. This will involve cuts in public spending in areas such as social welfare, health and education.
Mr Howlin has presided over a comprehensive spending review covering all Government departments since he took office last March and the outcome of that review will form the basis of his budget.
On the following day, December 6th, when it had been expected that Mr Noonan would deliver a normal-style budget speech, the Minister for Finance will outline the tax measures for next year.
The public will have to wait until day two to find out whether excise duty on the “old reliables” such as alcohol and cigarettes is being increased although it is already known that VAT on these items is going up by 2 per cent.
The VAT increase has already been announced by Mr Noonan, who has also said that the rates of income tax will not be increased.
This new format is being adopted as part of the strategy of spreading the budget details out over more than a month. There will be a Dáil debate following both speeches, which are expected to be shorter than the traditional budget speech.
Meanwhile, a Government source confirmed that Taoiseach Enda Kenny is likely to make his televised state-of-the-nation address next Thursday. Mr Kenny said yesterday that the budget would pose an enormous challenge as there was a requirement to take €3.8 billion out of the economy next year.
“The choices are unpalatable. But I can tell you that we haven’t signed off finally on the details of this yet. I have to say that the discussions around the Cabinet table have been very pragmatic and very realistic.”
Speaking in Cork, he said he was aware of the problems facing the country with more than 400,000 people on the Live Register and people in distress over mortgages.
“But we have got to deal with our problems ourselves. We have got to grow our way out of this. It also means we have to make decisions, unpalatable though they are, to reach the targets that will allow us both to reduce our debt and, at the same time, to get whatever opportunity we can to grow jobs and grow employment.”
Minister for Social Protection Joan Burton said the publication of the Irish Taxation Institute report should help a debate about fairness in the taxation system, “for instance, the contribution (made by) very wealthy people in Ireland – whether they are very highly salaried people in the public and private sectors;whether they are individuals who are in Ireland, but not resident for tax purposes; whether they can make a contribution that balances and limits some of the impact on the ordinary families that the report writes about.”
Ms Burton, who was also speaking in Cork yesterday, said no decisions had been taken yet in relation to child benefit reductions but the Government was looking at the figures and would ensure that the forthcoming budget was fair to everyone while at the same time working to regain our financial sovereignty.
Meanwhile, it has been confirmed that forestry body Coillte is the only commercial State company that has not responded to the Government’s request for a 15 per cent pay cut for its top management. In a statement, Coillte said: “No decision has been taken to date in respect of the voluntary waiver.”
Coillte chief executive David Gunning was paid €297,000 in 2010.
