The Four Year Plan released yesterday afternoon will affect every man, woman and child in this country. It is devastating – the price we must pay for political incompetence. Within a matter of hours, I gave a speech to the Seanad. You can read the whole debate by clicking here.
I welcome the opportunity to participate in this debate on the plan published by the Government this afternoon. This plan is in many ways the bill for economic failure. Regrettably, it is a bill that must be paid over a period of some years.
Having listened to Senator Boyle, I have a real sense that he is finding his voice on some issues and that he may be, in terms of some of the things he said, feeling a sense of political liberation. I agree with much of what he had to say. There is a sense that people have been codding politicians, and not perhaps only Government politicians, and that they may have been unwitting participants in the illusion that we can fund and have the type of public services to which we aspire and should have for our citizens and children, and that these can be sustained and managed at a particular level of taxation. A stark statement on page 91 of the plan, with which no one could disagree, states : “We have eroded the income tax base to an unsustainable level”. This is manifestly true. However, I do not believe income tax is the only element we need to examine in the context of from where we raise taxes. I agree with Senator MacSharry and others who said that it is necessary that we not confine ourselves to only looking at income tax. We do not wish to raise taxes for the hell of it but so that we can look towards having a sustainable economy and public service in respect of which there is certainty in terms of funding into the future. We must never again think we can pin everything on the type of transitional taxation we had during the so-called boom.
I recall sitting beside a politician on a radio programme prior to the last general election. She was a supporter of the then Government and is not now a Member of the Houses. I recall her seeking to sustain the argument over many minutes on that radio programme that it was possible to reduce taxes and improve public services. I do not understand how it would have been possible then or since to do this.
The extent to which any of us was party to such an illusion was a mistake but the principal responsibility must lie with the Government regarding these matters. Opposition politicians can from time to time be criticised for calling for this and that. It is sometimes legitimate to engage in such criticism but it is greatly dwarfed by the legitimate criticism that one can level at a government that has failed to carry out the policies it ought to have implemented.
The document, regrettably and sadly, is a bill and it is not particularly detailed. It has detailed aspects and although it purports to contain a growth strategy and a jobs strategy, it does not. There is nothing new in the narrative on these areas. There is a great deal of generalised, aspirational material, with which it would be impossible to disagree, but there is little relating to a jobs strategy. The IMF is constantly being invoked but its officials are in the House and, in an interim report published earlier this week, they rightly identified the urgent necessity for a growth strategy and to put in place serious measures to get people back to work. That is what we need.