Taoiseach Bertie Ahern was today accused of presiding over the worst deterioration in the economy in the State's history.
During Leaders' Questions in the Dail, Fine Gael leader Enda Kenny branded the latest Exchequer figures which show taxes down 8 per cent on the same period last year as disturbing, revealing sloppy and wasteful management.
Labour leader Eamon Gilmore followed with a stinging attack on a Government plan to give tax breaks to developers building private hospices while public patients can be forced to wait up to 18 months for crucial cancer tests.
The Opposition rounded on Mr Ahern claiming the downturn no longer just affected the construction sector and that economic confidence must be restored.
Mr Ahern conceded 2008 would be a tight year which would see a rise in unemployment figures but claimed the country was fairing well despite global financial uncertainty.
"Yesterday's figures clearly demonstrate there's a problem here," Mr Kenny said. "It's disturbing news and it needs to be looked at seriously by the government.
"This is no longer confined to the construction sector. This has now leaked out into the broader economy.
"What's happening now amounts to the worst deterioration in the economy in the history of the State," he said.
Mr Ahern hit back by saying that despite the global financial problems the economy was not far off its targets, but conceded job losses, particularly in the construction sector, would be a feature of the year.
"It is a year for tight and close management of the economy," he said.
Mr Gilmore accused the Taoiseach of being in denial over claims the situation will improve as the year goes on. He hit out at a plan by Finance Minister Brian Cowen to give tax breaks to developers building private hospices while cancer patients in public hospitals can be forced to wait up to 18 months for tests.
"There's quite a sad irony in this that we're going to give tax breaks to people developing private hospices for people dying of cancer in a country where finances can't be provided for tests and services in the public health service."