Government, FF at odds over who inflicted most pain

DÁIL SKETCH:THE ECONOMIC crisis has led to changed times in Irish politics. The Government and Fianna Fáil differed sharply in the Dáil yesterday on who was best when it came to inflicting fiscal pain on the Irish people.

Taoiseach Enda Kenny trumpeted the various measures taken by his Government since coming into power.

European leaders, he said, saw Ireland emerging from the economic challenge with an enhanced reputation and heading in the right direction to be in charge of its own destiny.

The contribution made by the Government was challenged by Fianna Fáil leader Micheál Martin who accused Kenny of “spinning a great yarn” about its achievements. “The bottom line is that the response to Ireland is due to the fact that very severe budgetary measures were taken which hurt many people and which were politically unpalatable,” he declared.

Last year’s budget, under a Fianna Fáil-led government, had included a correction of about €6 billion.

“The international response to this has been that Ireland has bitten the bullet,” he said.

Minister for Communications Pat Rabbitte strongly disagreed.

“You must be joking,” he said. “It is this Government that has implemented the pain, sadly.”

Then it was back to that general election campaign debate on the possibility of fiscal flames engulfing bondholders. Martin took the high moral ground.

“I told people in advance of the election that there could not be a unilateral burning of bondholders,” he said.

He accused the Government parties of misleading the public by claiming that it could happen on their watch if elected. “The Tánaiste said that it could be Frankfurt’s way or Labour’s way,” Martin added.

Avoiding the burning metaphor, Kenny insisted that “the writing down in respect of subordinated bondholders” had been significant.

Richard Boyd Barrett, of the United Left Alliance, joined in the fray, advising the Government to discontinue bailing out bondholders and stimulate the economy instead.

Fine Gael backbencher Bernard Durkan suggested Boyd Barrett “come into the real world”.

Without Fianna Fáil to round on for past deeds, and knowing that Boyd Barrett is bitterly opposed to all kinds of austerity, Kenny decided to strike an optimistic note. He said that projections for next year were for increased employment and growth. But he was careful not to concede the Government’s claim that when it came to austerity, there was nobody to rival Fine Gael and Labour.

“In so far as budget 2012 is concerned, we are taking almost €5 billion out of the economy in what is a very difficult situation,” he said.

Sinn Féin leader Gerry Adams advocated fiscal restraint when he urged the Government to reject AIB’s request to breach the €500,000 cap on bankers’ pay for its new chief executive.

Kenny recalled he had said there would have to be a “truly exceptional case” to warrant breaching it.

“I have not seen evidence of any exceptional case,” he added.

As his backbenchers chanted “Hear, hear”, the issue provided the only brief note of unity in the House yesterday.