The Opposition mounted a strong attack on the Government over its handling of the public finances during a debate on the economy in the Dail tonight.
TDs are tonight debating a Fine Gael private members' motion, in which the party condemns the Government for its "reckless economic policies", which it says have "sabotaged" our ability to withstand tougher economic times.
The debate began this afternoon and will go to a vote tomorrow.
Fine Gael's finance spokesman Richard Bruton this evening said the electorate had lost faith in the Government. “Where is the strategy? All we have had from the Government is that it has upgraded the storm to storm four,’’ he added. “We all know that. People who are losing their jobs know that. People who are struggling to pay for their house know that. People who are folding their businesses know that.’’
Fine Gael front bench spokeswoman Olivia Mitchell accused the Cabinet of being "totally out of touch" on the issue. "Having emerged briefly in the summer to tell us they would do something in October they returned just in time to ensure we all got a pay rise," she said. "This coincided nicely with the biggest ever monthly rise in
unemployment.
“This would be a comedy of errors, only it’s not remotely funny."
Labour finance spokeswoman Joan Burton claimed that moving forward the Budget to October was a cynical attempt at media manipulation. She warned that if the Government did not get real about the economy, there
was a danger that the autumn Dáil session would be a bridge between the Government's summer slumber and a winter of discontent.
Earlier today, Taoiseach Brian Cowen came under fire as he defended his handling of the economy. Mr Cowen said Ireland was working in “changed economic circumstances” that affected a small economy such as ours, and he insisted the Government would take action to protect jobs, inward investment and the tax base.
During leaders’ questions, Fine Gael leader Enda Kenny accused the Taoiseach of an “act of gross political cowardice” for failing to outline to the House measures he planned to take to deal with the current economic situation.
Mr Kenny noted the Taoiseach’s remarks that he would bring forward a “balanced and coherent plan” on Budget day on October 14th.
“You produced a balanced and coherent plan – or so you said - in July when your projections for the [Exchequer] deficit were €3 billion and when you projected a 3 per cent reduction in payroll across every Department,” Mr Kenny said.
Mr Kenny said he had been “amused” to hear the Taoiseach say yesterday that we must “buckle down” and stop wasting public money.
“I looked at the Comptroller & Auditor General’s report, which was out in the last few days and that points out disfunctional budgeting in the HSE from the Minister for Health,” he said.
Mr Kenny also pointed to other aspects of inefficient use of public funds as highlighted in the C&AG report, including a situation where 200 new Garda cars were held in storage for 15 months before they were deployed.
“The Prison Service entered into 60 contracts worth €18 million without seeking competitive quotes, and there were payments made in respect of Border allowances for troops 10 years after the peace process was concluded,” he added.
“The question I asked myself was who was the minister for finance who presided over all this waste? You say you are facing up to the situation, yet you were the minister for finance who presided over this gross wastage of public money.”
Mr Kenny asked the Taoiseach to outline “three actions” he had taken to ensure his successor, Minister for Finance Brian Lenihan, would not fall into “the same financial slurry pit” of wastage of public money.
Mr Cowen said the C&AG had constitutional responsibility to point out where there had been less than effective value for money or dispersal of public funds. But the figures were in the context of Exchequer revenue of over €50 billion and spending of over €50 billion, he said.
“Any million or hundred thousand spent unwisely or not to the best effect is obviously a million or a hundred thousand too much,” he said.
But he said that “any lessons to be learnt from it will have to be learnt”.
On the economy, Mr Cowen said all financial forecasts coming into this year were about the same as those of the Department of Finance.
He said we were now in a different situation from that envisaged by forecasters at the tail end of last year, primarily because of what had been happening in international markets.
“What we are intent on doing is within three weeks coming forward to the Dáil with a Budget proposal which will set out clearly what the expenditure issues have to be with less revenues coming in,” he said.
The Taoiseach said that “clearly economies will have to be made” and that the Government would set out its priorities for the capital spending programme as well as measures to protect the tax base.
He said the Government had no problem in engaging with the Opposition in debate on the economy, and would do so in the House in a special debate this week.
“But Government has a job to do….and Government’s job is to prepare for the Budget that we are bringing forward on October 14th.”
Labour Party leader Eamon Gilmore said that some 45,628 people – about 300 a day - had lost their jobs in the 140 days since Mr Cowen became taoiseach.
“In fact we are told that people are losing their jobs so fast now that your Department of Social and Family Affairs can’t keep up with the applications for social welfare payments.”
Mr Gilmore said some 30,000 people who had lost their jobs were still waiting for their applications to be processed. He asked Mr Cowen what had he done since the Dáil last met to address this situation.
Mr Cowen said the Government would use the training agencies, such as Fás, to provide “whatever opportunities they have for upskilling and re-skilling for those who lose their jobs”.
“In relation to the overall situation, the fact of the matter is, it’s an international downturn. It affects a small local economy like us – we are not immune from those developments. And it’s having its impact.”
The Taoiseach said the Government had to take account of “the changing circumstances”.
“Luckily we are working off a lower unemployment base than was the case in the past. The economy is in a stronger position but that is no comfort for anyone, I know, who loses their job in good times or bad times,” he said.