In Leinster House at about half past three, Minister for Finance Brian Lenehan confidently assured the nation that his six point plan was bold and comprehensive solution Irelands economic woes. Not least the estimated 90 billion euros of toxic debt sloshing round within the Irish banking industry.
The contents of the plan have the balance way too far on the tax side, instead of making tough savings, especially from strongly unionised public servants. The initial examination of the figures would suggest that Minister Lenehan has fudged his predictions for GNP. The 6.9% decrease this year is only estimated to fall to 8% next - confident or overly optimistic? The buoyance of tax revenue at 10.75% of GNP also raises an eyebrow.
Middle earners will be hard hit, those earning 50k will be levied by two percent because they are considered rich. In the real world this means earning in this sector will be down by about 160 euros per month or 2k per year. Some conservative commentators have called this a vicious baseball bat swung indiscriminitely on those earning 50k or more. This alludes to former budgets paying closer attention to personal circumstances - mortgage, children, sickness snd the like. Those earning from 51k-250K will be taxed on a upward sliding scale.
Those on social welfare have, for the time being, been protected from further pain - but they will have to wave goodbye to a much loved little extra - the Christmas bonus, this brought a huge roar of dissaproval from the floor of the Dail, but the poorest in society have ducked the baseball bat.
Some pain has been met by the government, by reducing payments on Conveners and in The Oireachtas, but is it enough?
Beware the next budget next December, some of the revenues will need to be increased for 2010 and legislative restriction has procluded Minister Cowan from weilding his bat even wider.
