Kenny: Ireland remains in crisis
Ireland remains in crisis, Taoiseach Enda Kenny has warned.
On the eve of the country’s budget Mr Kenny addressed the nation to tell the public they are not to blame for the economic collapse.
The Taoiseach warned that Ireland is spending €16bn more that it is taking in from taxes.
“Let me say this to you, you are not responsible for this crisis,” said Mr Kenny.
“My Government is determined that now the necessary decision and challenges are made to ensure that this is never allowed to happen again.”
He said there would be a referendum next year on abolishing the Seanad, as one of the Government's steps towards cost-cutting and politcal reform.
The historic address was the first of its kind in three decades.
Charles J Haughey made a similar appeal in 1980 when he claimed the country was living beyond its means, and before him, taoisigh Jack Lynch and Garrett Fitzgerald delivered their own addresses.
The second part of the Budget will be announced on Tuesday, which marks the 90th anniversary of the signing of the Irish Treaty and the creation of the Free State.
Mr Kenny said he chose to address the Irish people directly as the nation faces such a crisis – as a community, as an economy and as a country.
“I know this is an exceptional event,” he said. “But we live in exceptional times. And we face an exceptional challenge.”
Mr Kenny said it was important that people realise the extent of the problems that lie ahead.
“We will reform how we run the country so that we never return to the practices that drove our economy into freefall – reckless spending, weak oversight of banks and reliance on a property boom for tax revenues,” he went on.
He also warned that the spending cuts and tax hikes, which will be announced tomorrow and Tuesday respectively, will be difficult for the nation.
“I do not for a moment want to make it sound simplistic or painless. It is not,” he said.
“We are on a four year path to recovery. This, our first Budget, is a necessary step, but it will include cuts to many worthwhile projects.”
He pointed out that projects such as Metro North would be sacrificed as the Government endeavours to make the €3.8bn in savings to reach its deficit targets.
And he added that people are sure to feel the pinch as a result of indirect tax hikes, which will include a 2% rise in VAT.
Having promised to be open and honest with the Irish people, the Taoiseach admitted that the economy remains fragile and that it is likely to take several years for it to fully recover.
But he said he wants to be the man to help lead it to recovery.
“I want to be the Taoiseach who retrieves Ireland’s economic sovereignty, and who leads a Government that will help our country succeed,” he said.
“I want to make this the best small country in the world in which to do business, in which to raise a family and in which to grow old with dignity and respect.”
Mr Kenny went on to explain that the four-year plan ahead will be difficult for many, including those struggling to pay mortgages and looking for work, and young people trying to fund an education.
He said this is the reason it was so important for him to be honest with the public ahead of the austerity Budget, which may include cuts to child benefit of €10 a month, dole payment cuts of eight euro a week and a €50 annual fee imposed on medical cards.
“I believe government, being honest and open, working with the people, will meet and beat the challenges we face,” he said.
“I believe with all my heart, that we the Irish people can now make our way to recovery, to prosperity and to the fulfilment of the dreams of our children and the founding fathers of our nation.”
| Related Stories: |
|
