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Government budgetary strategy ideologically driven – Morgan

27 October, 2010


Speaking today during a Dáil debate on the economy today, Sinn Féin Spokesperson on Finance Arthur Morgan said the Government’s strategy is ideologically driven rather than being based on common sense.

Deputy Morgan said:

“When we are told that the economy is shrinking significantly, that Government spending is far too high and Government borrowing becoming unsustainable, that the economy is becoming uncompetitive, that workers are being paid too much, that the minimum wage must be lowered, that social welfare rates are too high, we should know that this is not common sense – it is the agenda of an ideology that serves the interests of a small class in society.

“Sinn Fein has argued against bleeding demand from an economy that was already operating on empty when the succession of emergency budgets was being introduced in 2008/2009. This was not listened to.

“The Government’s misconceived budgetary strategy is aligned not to the productive capacity of the economy, but rather to a wholly artificial time-line imposed by the EU Commission. Tax flows from economic activity, not from cutting the economy further. When fighting against public debt we must make sure we are not killing public services.

“Let us be clear: this Government is making conscious choices on the Budget. It is declining opportunities to raise for example €1 billion in revenue through the introduction of a wealth tax. If, and when, this Government cuts social welfare it is because it has chosen to do so, and because it has chosen not to develop alternative revenue-raising tools.

“Austerity doesn’t work. The 2014 deadline cannot be met. The government’s policies are failing.” ENDS

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