Government plays down give-away budget predictions
Fianna Fáil today played down opposition speculation that the Government is preparing a give-away budget ahead of the General Election.
The party has been accused in the past of trying to win votes with a spending spree prior to the polls.
But Minister for Finance Brian Cowen insisted the budget would be based on a long-term strategy to ensure continued prosperity.
He told business leaders at a party-organised economic conference in Galway there was no basis for a forecast downturn but warned against complacency.
He said measures were needed to safeguard against rising inflation and oil prices.
“I’m not intending on putting at risk the hard won gains of the Irish people over the past number of years through their own efforts facilitated by a government that’s prepared to work with them and for them,” he said.
“I’ve said in relation to mortgage interest rates increases, which are the preserve of the European Central Bank, and oil prices, which are external to what we can influence, we will do everything else that we possibly can to ensure that inflationary pressures do not become a constant in our economy.”
Mr Cowen said he would reveal various initiatives over the next six months designed to boost the economy, which he believes could grow by around 5% per annum.
Ireland was one of the most pro-work, pro-enterprise taxation systems in the developed world and has the second highest rate of business start-ups in the EU, he added.
Enterprise Minister Micheál Martin, speaking to 400 guests at the same conference, echoed Mr Cowen’s indications on the Government’s plans for December’s budget.
“We’re clearly saying to people that jobs matter, that the economy does matter, we’re competent in terms of the management of our economy but more importantly we have a strategic perspective on what we have to do for the future of this country,” he said.
