Lenihan: emergency action is part of three-year plan
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THE emergency Budget will be part of a three-year plan which would also cover 2010 and 2011, Finance Minister Brian Lenihan told the Dail last night.
He said the Government would take the decisions needed to stabilise the economy and this would involving additional taxation and spending cuts.
"No option is being excluded," Mr Lenihan added.
"The future economic viability of this country is at stake," he said, calling the situation "one of the most daunting challenges to face any Government since the foundation of the State".
But, he said, the 9.5pc borrowing limit for this year had to be "fundamental importance" because it was already the highest in the eurozone.
He said the Opposition could submit "any proposals you may have" for full costing at the Department of Finance, and the social partners would be briefed on the situation.
"We must all play our part in dealing with the downturn," he said.
Earlier Taoiseach Brian Cowen had labelled the €1.8bn tax shortfall in February, a drop of 24pc year on year, as "disappointing", adding: "We're in a very serious situation."
The gap between income and expenditure this year was already expected to be €18bn, Mr Cowen said, but revenues could now fall further -- by €2.5bn to €3bn.
Labour finance spokeswoman Joan Burton said "it sounds like the system has broken down".
Fine Gael leader Enda Kenny said the announcement meant that the public finances were "spinning out of control".
Sinn Fein MEP Mary Lou McDonald said: "The public finances continue to freefall and the Government has still not delivered a real plan."
- Senan Molony Deputy Political Editor
