Lenihan"s bid to sell budget in Athboy

The Minister for Finance, Brian Lenihan, told a business breakfast in Athboy last week that the current decisions being made in relation to the economy are 'not a political power trip for the Government', but an effort to ensure that the progress of the last decade is safeguarded for the Irish people for generations to come. In the Old Darnley Lodge Hotel on Friday morning, Mr Lenihan told the gathering at a Fianna Fail fundraiser that he would be signing the ministerial order for the bank guarantee scheme later that day in Dublin, outlining how the banking crisis had began last year in the United States with banks selling mortgages onto other institutions which proved worthless. 'This led to a global crisis, as the economies of Europe and the US are interdependent. That, coupled with our own slowdown in the building trade, means that we need to be resilient,' he told his audience. Mr Lenihan said there was a lack of tax funds coming into the exchequer as a result of this construction slowdown, so funds were reduced for such things as health, welfare and education. These were difficult economic times, as was visible everywhere, with Gross Domestic Product (GDP) down 1.3 per cent on last year and due to shrink again next year. 'That mean"s Ireland"s wealth is shrinking,' Mr Lenihan added. There was a total budget requirement of €40 billion, and €17 billion in the national pension fund which, like everything else, was seeing a drop in value. 'The State will need to borrow more this year to keep going, some would say too much money; but we need to build roads, schools and such and are not in a position to now from taxation receipts, so will need to borrow more. Some €4.7 billion will be needed this year to fund day to day expenses.' The spending situation that was occurring before the budget was not sustainable, and that is why an early budget was brought to the people so that it could be rectified,' he added. 'I didn"t want to be in a situation Ray McSharry found himself in 20 years ago and needed to pull it all back. And even if we did have a general election in the next year or two, it would take a long time to sort out the current economic problems.' The Finance Minister said we were not entitled to be borrowing 10 per cent of every public service salary. Saying that the Government had to be realistic about the finances, he apologised for upsetting the elderly over the medical card issue, as it was never the intention. Governments do make mistakes, he added. But he said he was happy with his handling of the one per cent levy, as this was a low tax country, and he was satisfied with the tactics applied regarding those on a minimum wage. 'What has been presented in the budget are in the best interests of the country,' he added. Responding to those who criticised the bail-out of the banks, he said the move was not done to save the banks, but to help the economy. 'If the banks fail, then the country fails, as we have seen in Iceland,' he said. 'And we need Ireland to continue to be able to maintain its place in the global economy.' The challenges are enormous, but can be met, Mr Lenihan said, with reform in public services, ensuring that taxation meets what we need, and ensuring that the economic growth can be increased in the years ahead. He was welcomed to the fundraiser for Athboy Senior Citizens" Christmas party by Transport Minister Noel Dempsey, who recalled that he first got to know Brian Lenihan as his director of elections in the by-election following his father, Brian senior"s, death, and described his as a very capable and articulate politician. Thanking the guests, Cllr Liz McCormack said that the event had brought in enough funds to provide a number of parties for the town"s senior citizens this year. A group of 12 Sinn Fein members, including its four public representatives in Meath, protested outside the hotel as the ministers arrived.