Tánaiste and Labour leader Eamon Gilmore has refused to confirm nor deny that tax increases and social welfare cuts will form part of the forthcoming budget.
“The social welfare budget has to be reduced, and [Minister for Social Protection] Joan Burton is working on doing that in two ways: first of all by addressing the whole problem of over-claiming, and she has made considerable progress on that.
“And secondly by the reforms that she is pursuing. Obviously the detail of that will be in the budget and the social welfare Bill which will come with the budget.”
Mr Gilmore, who is also Minister for Foreign Affairs and Trade, was speaking to reporters at the end of a two-day Labour parliamentary party "think-in" at Tullow, Co Carlow.
When it was put to him that cuts in child benefit were considered inescapable, he refused to comment: “I’m not going to get into individual benefits.”
Asked if tax rates would go up, he again declined to go into detail. “Revenues have to be increased: if you have to make an adjustment in the budget of €3.6 billion, you have to do that by reducing expenditure, and that’s why the comprehensive review of expenditure is under way.
“The second way is by raising revenues. Again, the detail of all of that is something that will have to await the budget.”
Asked about the commitments in the Programme for Government that there would be no increases in tax rates and no reductions in welfare rates, he replied: “Yes, those are the commitments that are in the Programme for Government.”
When it was put to him that these commitments would not be adhered to now, Mr Gilmore replied: “I am not going to get into predicting what’s going to be in the budget.”
Commenting on the €713,000 retirement package for outgoing secretary general to the Government, Dermot McCarthy, Mr Gilmore said: “I do understand public anger, and I think severance packages of that size are too high.
“That is why the Government has already moved to cap salaries in the public sector which of course will also mean that pensions in the public sector will be capped. That is why, too, we have decided that those types of caps in salaries and reductions which are applied across the public sector should also apply to the judiciary, and that is why we intend to have a referendum on that matter later this year,” Mr Gilmore said.
In an address earlier, Labour’s presidential nominee, Michael D. Higgins, said: “The forthcoming presidential election is a great opportunity for the onwards and upwards success of the Labour Party, and the continuing and future political success of every one of us in this room.
“By having an active and energetic presidential campaign, I suggest that it isn’t an accidental consequence that it will leave the Labour Party well placed to make significant inroads in the local elections in 2014," he said.
“This, of course, leads me to conclude that it is in the best interests of all of us in this room to become actively involved in the campaign over the short period of seven weeks that remains. The critical starting point is my ability to secure and retain the sizeable Labour vote from the general election last February,” Mr Higgins added.
Earlier today, the Tánaiste said the Government has considered selling off the National Lottery as part of its review of State assets, Tanaiste Eamon Gilmore said today.
Mr Gilmore said the coalition had given a commitment to selling off €2 billion worth of assets and that it was looking into what the sale of the National Lottery and other assets could amount to.
“No decision has been made. It’s a case of the Government looking at what the options are and that’s one of the options,” he said.
Mr Gilmore told RTÉ's Morning Ireland that were it to be sold, the National Lottery would be disposed of in such a way that the amount it contributes to the community, arts and sports initiatives would continue and be protected.
Mr Gilmore also said he was confident the Irish economy would recover but that a budgetary adjustment greater than the €3.6 billion figure agreed with the EU-IMF was not a necessity.
“You have to balance what you’re doing with the impact it will have on the economy,” he said, pointing to strong export growth but poor domestic demand.
Mr Gilmore also rejected reports that his performance at Cabinet had been weak. He said he did not believe what had allegedly been said about him by colleagues and that he was not going to be distracted by it.
