FINE GAEL leader Enda Kenny has given what he describes as a “guarded welcome” to yesterday’s announcement of an emergency budget. He has warned, however, that the Government is facing a €20 billion hole in the public finances in 2009, following the publication of the exchequer figures for February.
Mr Kenny said that the budget proposed by the Government must include a “radical overhaul” of the public sector. He claimed the announcement was a final recognition from Mr Cowen that Fine Gael had correctly called its absolute necessity many weeks ago.
“[During that time] the Government has denied the need for a new budget,” Mr Kenny said. “In fact, the Tánaiste [Mary Coughlan] said last week that the public finances were under control.”
Labour deputy leader Joan Burton said that the poor revenue performance confirmed the need for action to be taken to deal with the sheer scale of the deficit, following the lowest February revenue figures since 2004. “The Government has effectively agreed that a new budget is necessary, even if, bizarrely, it refuses to use the B word,” she said
Sinn Féin said the exchequer returns suggested a public finance crisis that could not continue to go unchallenged.
Last night, the Fianna Fáil parliamentary party gave unanimous support to Taoiseach Brian Cowen for the emergency budget and fresh austerity measures.
Almost 100 TDs and Senators were at the 2½-hour meeting – much longer than normal – which was addressed by Mr Cowen and Minister for Finance Brian Lenihan. The atmosphere was described as “resigned” and subdued but there was no dissent expressed to the measures outlined by Mr Cowen to address the rapid deterioration in the public finances.
Government Chief Whip Pat Carey said Mr Cowen received the full support of his colleagues. “There was no dissent,” Mr Carey added. “There was a recognition that there are difficult times ahead and that the Government must do what needs to be done to ensure Ireland gets through this difficult period.”
The meeting last night came two days after the ardfheis and a general perception among Fianna Fáil TDs that the party had picked up some moment. However, the latest exchequer figures from yesterday, which showed that tax revenues are some €1.8 billion less at the end of February than they were in February 2008, was portrayed by one TD as “a disaster”.
Limerick East TD John Cregan said yesterday’s decision showed the Government was prepared to take difficult decisions before the European and local elections.
