Apr 2009
The Fine Gael Leader, Enda Kenny T.D. today set out his Party's pre budget perspective (for a copy of the proposals, please contact the Fine Gael Press Office) and set out a four year plan to restore the public finances and, crucially, to support new job creation and job protection. In 2009 the Fine Gael plan includes €340m in tax cuts and breaks aimed at stimulating the economy and protecting jobs. This figure rises to €645m in 2010. Total savings for the Exchequer in 2009, allowing for tax cutting proposals, is €3.5 billion, 1/3rd from new taxation measures and 2/3rds from spending controls.
Commenting on the proposals, Enda Kenny said;
"If we don't fix the jobs crisis we won't fix the problem in our public finances. That is why today's proposals from Fine Gael focus on controlling spending, targeted widening of the tax base but also very specific job creation and protection tax breaks. That means cutting the lower rate of VAT to 10%, a PRSI tax break for employers taking on new workers and reversing the October increase in the top rate of VAT. I also encourage the Government to take on board Fine Gael's jobs stimulus package that can get 100,000 people back to work over the next four years. A stimulus package of €11bn in strategic investments can position our economy for the next 30 years, but crucially gets people back to work in the immediate future.
Commenting on the budget perspective, Richard Bruton said;
"We cannot continue to chase down the economy with more and more taxes. The Fine Gael approach recognises the need to fix our public finances but sees the much larger share of the correction coming from spending controls rather than new taxes. Two thirds of our savings come from spending controls, one third from new sources of tax. We have to start investing boldly in new jobs, just as our NewERA stimulus plan set out. We must also protect existing jobs as well. That means getting costs down and easing the burden on small business.
"In addition, we have to fix the public finances the next four years and not keep pushing the target date off. We have focused our approach on tackling the spending side of our budgets rather than going for excessive tax hikes. No economy ever taxed its way back to recovery. The Fine Gael approach is rooted in fairness and geared towards job creation. This budget cannot simply be a book keeping exercise. With imagination and drive and political will this budget can be an opportunity to overhaul the outdated, failed structures of the past and deliver a streamlined and efficient public service that helps create and support an enterprise culture rather than stifle or replace it."