Independents' warning may leave Budget 2011 in tatters

The crucial €6bn-savings Budget was in tatters tonight after two Independents warned they no longer supported the Government.

The crucial €6bn-savings Budget was in tatters tonight after two Independents warned they no longer supported the Government.

Amid the Greens’ threats to pull the plug, two rural TDs warned they could not be relied upon and would walk away if swingeing cutbacks were unveiled on December 7.

Budget 2011 will set out €4.5bn reductions in spending and €1.5bn in new or increased taxes.

It is expected to see the minimum wage cut by €1 to €7.65 and social welfare reductions. A property tax and increases to income tax are also on the cards but may not take effect next year.

Both Michael Lowry and Jackie Healy-Rae deepened the crisis facing the coalition and warned they were no longer standing by the Government.

Mr Lowry, from Tipperary South, said Fianna Fáil was in disarray and he was highly unlikely to support the drastic cutbacks.

He called for the Opposition to sit down with Finance Minister Brian Lenihan, effectively setting the agenda for national consensus in Government.

“For Fine Gael and Labour to simply shy back from reality and refuse to engage now with the Government and reach agreement on a budget would be a complete abdication of their imminent responsibilities,” he said.

“It would demonstrate a greater appetite for political advantage than a readiness to exercise responsible leadership.

“It is time for Fine Gael and Labour to show that they are ready to take power, that they can exercise responsible leadership.”

Mr Healy-Rae, Kerry South, said he was not 100% certain how he would vote.

He said the last 10 days had shattered whatever little confidence he had in the Government.

“The time has come for the Irish people to hear what the remedies by all the political parties for our difficulties are and for the Irish people to cast judgement on these remedies…Let us go before the people and stop this charade of spin and lies,” Mr Healy Rae said.

Both TDs had struck confidential deals with Taoiseach Brian Cowen in return for their support.

They were part of a now crumbling coalition which is expected to be further dented on Thursday, if it lasts that long, in the Donegal South West by-election.

Sinn Féin Senator Pearse Doherty, whose lawsuit against the State forced the Government to set a date for the vote, is the front-runner to take the seat.

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