The Taoiseach has refused to be drawn on an increase in PRSI in the next budget which has been mooted by the Minister for Social Protection.
Fianna Fáil leader Micheál Martin claimed in the Dail this afternoon that Joan Burton’s decision to raise the prospect of an increase was undermining confidence in small- to medium-sized businesses (SMEs).
“It is undermining their capacity to plan with certainty and clarity to the end of the year and for the entirety of 2013,’’ Mr Martin added.
Enda Kenny said he was not going to get sucked into the attempt by Mr Martin to have the Taoiseach involve himself in budgetary matters.
He said the Government had made its position very clear and was determined have the deficit down to 7.5 per cent by next year.
Mr Kenny said Ministers would argue for their own departments at the Cabinet table.
The budget would not be until December and there was a great deal of activity to be got through in the meantime.
In a speech this weekend, Ms Burton suggested increases in PRSI, saying the Irish rate was lower than other countries. Tánaiste Eamon Gilmore defended Ms Burton, saying she was quite right drawing attention to shortfalls in the social insurance fund.
Mr Kenny said the EU bank debt deal will not ease the burden of cuts and tax hikes in the budget.
"For this particular budget 2013, this decision will not make any appreciable difference," he said. "Not for this budget certainly, but for the future, the negotiations that will be entered into will be important."
Mr Kenny confirmed the Government was aiming for the end of the year to finalise agreement with the European Union on substantial reductions in the €60 billion bank debts currently lumped into sovereign debt. The first round of talks begins among EU finance ministers in Brussels next Monday.
The Taoiseach said the deal struck in the early hours of last Friday should be seen as a diplomatic win and not a financial win.
“It’s not a case of anybody looking for credit here. I gave great credit to the Irish people for their decision on the referendum. That was credit in the bank to use a pun, for use at an opportune time,” he said.
Mr Kenny also asked all members of the Dáil to bring suggestions forward as to how Ireland should benefit from the splitting of bank debt from sovereign debt.
Additional reporting: PA
