Posted online: Apr 13th, 2009

This week’s emergency budget introduced some harsh cuts and price hikes to individuals but it has been criticised as a “garish nightmare” for businesses in Donegal.
Deputy Niall Blaney welcomed the tough measures introduced in the budget as a necessary response to the country’s economic difficulties.
“The Government has done its best to ensure that the measures are evenly distributed, and that those can afford to pay will pay most, and those who can least afford to pay, will pay least,” he said.
The deputy welcomed the introduction of a free pre-school year in the budget, which he said would help families and maintain employment in that sector.
The budget was called “a garish nightmare for Border businessmen” by Deputy Joe McHugh, who said Donegal people would be driven to buy cigarettes and diesel across the border by the increased duties. Deputy McHugh said the budget “twists the knife that Minister Lenihan shoved into the back of the Border businessmen at the beginning of the winter.”
He also called the €45million cut to the REPS budget an attack on the farmers.
Toni Forrester of the Letterkenny Chamber of Commerce said that the budget failed to help Donegal businesses.
“The budget hasn’t done anything to stimulate the economy. We knew it was going to be very difficult for the taxpayer but it hasn’t done anything to help business people in border areas.”
Ms Forrester did say that the Assets Management Agency, which will take bad loans off the banks’ balance sheets, could work if it was properly implemented.
Senator Pearse Doherty criticised the budget as “sickening” and said that a 25% reduction in funding for local and regional roads could see up to €10 million taken back from Donegal County Council this year. He said the government had failed to supply a fair and progressive taxation system, coupled with a job creation strategy.