The Taoiseach has indicated that the Government is not planning tax increases. "We will not abandon the low tax regime that has been the engine of our economic and social progress," said Mr Ahern.
"Any short term gain would cost us dearly in the long term. We will husband our resources to support our priorities. Other issues will, for now, have to wait."
This prudent approach would protect jobs created and progress made. "For the future, it will ensure that we are well placed to move ahead rapidly when conditions in the wider world permit."
During the resumed debate on the Book of Estimates, Mr Ahern said he did not know whether to be saddened or amused by the positions of the Opposition in the debate.
"Their position in this debate is not the position they articulated in the recent general election. Their position is not grounded on the open nature of our economy ,or do they give any recognition to the fact that the international economic context continues to be rather bleak. Ireland is not Tír na nÓg. We cannot carry on as if nothing as changed."
It was beyond doubt that the spending increases of recent years could not be sustained indefinitely, he said. "Over the last two years alone, growth in spending stands at some 40 per cent."
The Tánaiste, Ms Harney, stressed the "overall imperative" of reducing growth in public spending. "The fact is that we must acknowledge the changed economic circumstances in which we are currently operating, but it is equally vital that we protect our economic competitiveness and retain the capacity to generate employment in key sectors. We have achieved that balance."
The Fine Gael leader, Mr Enda Kenny, said the Estimates failed as an overall indicator of the Government's position on spending. "Why? Because there is absolutely no evidence that the Minister or the Government can restrict public spending to the levels in the Estimates.
" They didn't in 2002, in 2001 or in 2000. So, why in God's name, should we believe that they can rein it back in 2003?"
The Labour leader, Mr Pat Rabbitte, recalled the assertion by the Minister for Finance, Mr McCreevy, during the election campaign that no cutbacks were being planned secretly or otherwise.
He claimed it was "the most deliberate, calculated untruth on a fundamentally important matter ever uttered by an Irish Minister". It was not believable, he added, that Mr McCreevy committed such a statement to writing without at least his Taoiseach agreeing to it and his Tánaiste knowing about it.
