Kenny Praises Budget 2012 In Dáil

Now that all the elements of the Irish Republic's Budget 2012 are known, the Taoiseach Enda Kenny has addressed the Dáil.

He said that the Government came to office at a time of unprecedented challenges for the Irish economy and the Irish people: "Our task was to restore our economic sovereignty; to get Ireland working again; to return our economy to growth; and to radically reform our politics and public services," he said.

"We came into Government determined not to repeat the disaster of the Universal Social Charge, which was a disaster for consumer confidence, spending and the incentive to work.

"That is why we are now exempting from the Universal Social Charge 330,000 people with incomes of less than €10,000.

"This is a statement of the value that this Government attaches to work," he claimed.

"We have chosen instead to tax wealth rather than work. We have found ways to ensure a fair distribution of the burden of adjustment that does not put at risk our core objective of growing our way out of this debt crisis.

"Protecting the take-home pay of those at work will ensure that work continues to pay, and make it affordable for people to move off welfare and into jobs when opportunities arise."

In addition, the Taoiseach spoke of 'Rebuilding International Confidence', and 'Supporting Enterprise to create jobs' and said: "IDA, Enterprise Ireland and the County Enterprise Boards have maintained their high budgets despite pressure to reduce spending across Government and they continue to provide essential financial and soft support to businesses.

"The capital budget of the Department of Jobs, Enterprise and Innovation will hit its highest ever level with €1 billion being provided over the next two years. This is solid evidence of where our priorities are," he added.

The Taoiseach also spoke of protecting the vulnerable: "There are no changes to core social welfare payment rates or State Pension Rates in this Budget.

"We have protected the take-home pay of workers by avoiding any increases in income tax.

"We are assisting vulnerable homeowners by increasing mortgage interest relief to 30% for first-time buyers between 2004-2008.

"This meets a core commitment of the Government to help the generation worst affected by the collapse in property values," he said.

"We are providing additional funding to develop community mental health teams and services and we have made sure to safeguard our children and young people from the brunt of the cuts: the basic rate of child benefit has been maintained.

"Schools in disadvantaged area will continue to be prioritised for targeted supports the overall number of resource teachers and SNAs is being maintained," he said., adding "we have committed to building the National Children’s Hospital".

The Taoiseach addressed the issue of public sector reform and said public service numbers will fall by 6,000.

"This will mean a real saving of over €400 million in the Public Service pay bill. We are targeting a reduction of a further 23,500 staff by 2015 over what was planned by the previous Government."

Finally, the Taoiseach looked ahead to the future in Europe.

"The Irish Government will play its part - constructively contributing to solutions which will restore stability to the financial markets, while safeguarding the legitimate rights of the Irish economy and people.

"Our ability to effectively represent Ireland on the European stage is greatly enhanced by the actions we have taken at home and abroad."

(BMcC/GK)