The Taoiseach has pledged not to increase income tax and the Tánaiste not to cut social welfare payments in the budget as the Government today marked 100 days in office.
Amid claims of U-turns on pre-election promises, Enda Kenny and Eamon Gilmore defended their tenure and vowed to abide by the commitments made in the Programme for Government.
Speaking at a joint news conference at Government Buildings this afternoon, Mr Kenny said: “There will not be any income tax increases in the budget.
“I say that because it is fundamental to the Programme for Government and because it is necessary, in difficult times, it’s important that people have some planning to be able to put into their lives.
“For that reason, that element of the Programme for Government is one that we will adhere to very strictly and very clearly,” the Taoiseach said. Mr Kenny’s guarantee follows claims from Minister for Finance Michael Noonan that he could not rule out tax increases or reductions in future budgets.
Mr Gilmore also pledged social welfare rates would be maintained as the two leaders held a joint press briefing to defend their achievements after three months in power.
The Taoiseach said the Government had acted swiftly and decisively to tackle the crises in banking, jobs and public finances. But he admitted not everything promised before the February election had taken place, but said they had gone farther in some policy decisions than envisaged.
Despite claims he failed to live-up to his pledge to renegotiate the EU/IMF bailout Mr Kenny said there was a need to "rebuild credibility by implementing the agreed bailout terms”.
“That’s how we’ve already secured near universal support for an interest rate reduction, including from the IMF, the Commission, ECB and most EU countries.”
In a veiled reference to French president Nicolas Sarkozy’s opposition to a cut in the interest rate, Mr Kenny urged EU leaders to “put aside their domestic political agendas” and help countries like Ireland who were working towards recovery.
“This is a financial crisis. It’s not a socio-political experiment to see how far the Irish people can be pushed, how much they can take. Consequently, European leaders must lead, must put aside their domestic political agendas, and at this crucial juncture, support countries, who are working towards recovery.”
Mr Kenny said the Fine Gael-Labour coalition had been given a “strong mandate” in the general election to get the country working again.
He himself had entered a covenant with the Irish people, “to tell them the truth, no matter how painful or difficult, that truth might be”. The new Government’s immediate challenge was “the quagmire of Irish banking”.
“Within the first three weeks, we announced a comprehensive restructuring and recapitalisation-plan for the domestic banks, credible to depositors and markets alike,” he said.
Bondholders, particularly in the “hopeless-case” banks, were sharing the rescue costs. Jobs had been “at the heart” the Government’s first 100 days," Mr Kenny said. “Ten weeks into office, we announced a Jobs Initiative and Internship Programme, whose effects will be seen shortly,” he added.
Noting it was Bloomsday, Mr Kenny recalled how James Joyce wrote that "nations have their ego, just like individuals". Mr Kenny said: "In Ireland, we have more. We have pride. Pride in what we know we can achieve, when we work together, for the good of our nation. We have realism too. There are no quick fixes. No cheap bailouts. No easy road ahead.
“We‘re working in extraordinary times, in straitjacket conditions, but we have a plan. I ask people to work with us in delivering it,” the Taoiseach said.
Standing beside the Taoiseach at Government Buildings, Tánaiste and Minister for Foreign Affairs and Trade Eamon Gilmore said: “Our challenges are many. But so are our ambitions for our country, and our hopes for our people.”
He said: “There is no silver bullet that will solve all our difficulties. But we will succeed, the way the Irish always have: by sheer hard graft and determination.”
The new Government had “put jobs front and centre of its policy-making and its decisions, from day one in office”.
“We have slimmed down the cost of Government, starting with our own salaries. We have agreed legislation to reduce political donations; to hold byelections within six months; and my colleague, Minister Brendan Howlin, will be overseeing two referendums this autumn to strengthen the Dáil’s powers to investigate matters of public concern.
“We have also restored the minimum wage because there is a threshold of decency which we will honour," Mr Gilmore said.
“And we have been upfront with the people about the scale of the banking problem, and the challenges that lie ahead,” Mr Gilmore added.
Additional reporting PA
