BY HARRY WALSH
A REDUCTION in the VAT rate coupled with an increase in Northern Ireland was one of the measures welcomed by the business community in Donegal following Wednesday's bduget.
There was also sharp criticism of the budget for cutbcks in social welfare and public sector pay along with fuel price increases.
While IBEC welcomed the budget, describing it as 'a turning point' as it stops the deficit rising, Deputy Joe McHugh accused Minister for Finance Brian Lenihan of forgetting about Donegal.
He said the Budget contained no measures to stimulate employment, and would force young people to emigrate. He also attacked Dr James McDaid for supporting the budget.
"The Minister for Finance says he is cutting social welfare for under 24s because he wants young people to start working, but nothing in this budget will create jobs or opportunities for young people," Deputy McHugh said.
Speaking after Fianna Fáil Deputy McDaid supported the first set of Budget measures in Dáil votes on Wednesday night, Deputy McHugh accused his constituency colleague of engaging in empty gestures by pretending not to back the government.
"Deputy McDaid has so far supported Budget 2010 in the Dáil. This is inconsistent with everything he has said about the Irish economy in recent months. But he has a chance to prove his independence, and to show that he really does care about his constituents, by opposing the draconian cutbacks in social welfare.
"The Social Welfare Bill cuts child benefit, and attacks carers, widows, people with disabilities, and the visually impaired by reducing theirallowances. This bill is not yet law. Deputy McDaid should put his money where his mouth is, and vote against this bill," Deputy McHugh said.
The Director General of the business and employers organisation IBEC, Danny McCoy said the budget puts Ireland on a sustainable path.
"The right thing to do was the hard thing to do and the right thing has been done. Confidence can now be restored both to consumers and to international investors.
"To get the country back to work, the public finances need to be stabilised without further major increases in taxation. It is of critical importance that we make the necessary correction now, rather than dragging it out over many years," Mr McCoy said.
Donegal South West Fine Gael Deputy Dinny McGinley said the people who could least afford it were now being forced to pay for the sins and omissions of the government over the past decade.
"The reduction in excise duty, leading to a 12 cent drop in the price of a pint, will make little or no difference. You would need to consume four gallons to get the price of a pint.
"It's unforgivable that they're attacking those who can least afford the cuts and it has to be remembered that we've only been give the framework at this stage.
"The ministers have yet to come back to us to tell us what cuts are to be implemented in each
Department. Where will the axe fall," Deputy McGinley asked.
Donegal's farmers meanwhile, believe, that their sustained campaign over recent months of sending letters to their local TDs had served them well in fending off further cuts to agriculture in Wednesday's budget.
Local IFA Development Officer, Mr Davie Keith said: "There is no doubt that farmers in Donegal telling their TDs how the current economic climate is affecting them had an impact on this year's budget decisions as regards agriculture. They got their message across."
The Letterkenny and District Trades Council said that Donegal had even more reason to fear the future after 'this most savage and stupid exercise that masqueraded as a budget'.
Fuel retailers along the border welcomed the budget announcements by the Minister for Finance.
