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As Sinn Féin predicted, no room for tax cuts – Morgan

23 October, 2007

Sinn Féin's Economic Affairs spokesperson Arthur Morgan TD has said that it is time for the Government to admit that they got it wrong in proposing tax cuts in the face of an economic slowdown. Morgan was responding this morning following warnings from the ESRI that taxes may have to be raised in the Budget in order to maintain public services.

Deputy Morgan said:

"There was broad knowledge across the political and social spectrum in advance of the general election of a number of key vulnerabilities in the economy. Chief amongst these was the implication for tax receipts of a widely predicted decline in the construction and property sectors. The Tax Strategy Papers prepared in advance of the last Budget show that there was a clear awareness of this within the Department of Finance.

"Pre-election promises to cut tax were a reckless act by an arrogant and complacent government. It is time now that the Minister for Finance admit that his party got it wrong in proposing tax cuts in the face of economic slowdown. It is time to be honest with the public and acknowledge that these cuts cannot be implemented if current levels of public services are to be maintained for a growing population.

"The argument made by Sinn Féin in the run up to the election that the Government cannot with the slow down in economic growth and the developments in property and construction, afford to cut taxes and maintain, let alone improve, public services has been shown to be correct." CRÍOCH

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