18:57: The Small Firms Association has broadly welcomed today's Budget, saying that 'it should send the right messages to the international markets.
It said it would give businesses the confidence to reconsider investment decisions that have been postponed due to the uncertainty that has prevailed over the last number of month.'
However, it also criticised the 'paltry' €100m Enterprise Stabilisation Fund, saying it 'would do little to support struggling small businesses in real terms.'
18:53: Brian Cowen said, in respect of public sector numbers, the Government had brought forward proposals to control pay and pensions.
Mr Cowen said there was a commitment in the multi-annual fiscal plan to continue to reduce spending and to raise taxes.
He said the Government had indicated that base broadening was a fundamental requirement of our redesigning of the tax system.
He said the Commission on Taxation would be reporting in July and that would give a very systemic overview of what was needed in this area.
18:51: The Irish Hotels Federation has welcomed today's Budget.
IHF president Matthew Ryan said it gives 'a roadmap to bring the country's public finances under control and restore confidence in the economy both nationally and internationally.'
He also said that the measures should provide some foundation for a return to growth in the wider economy over the medium term.
However, the IHF expressed its concern that the minister is too reliant on tax increases for public financial stabilisation instead of current expenditure reductions.
It also said, that while the Federation welcomes the measures announced to stabilise the banking system and seek improvements in the supply of credit to the real economy, the objective must be to provide greater transparency around access to liquidity and to provide small and medium-sized enterprises with access to the working capital they need for the day- to-day running of their businesses.
18:49: Brian Cowen told the press conference that we will have to wait and see the level of take-up of the early retirement scheme for over 50s in the public sector.
He said, under the provisions, there would be savings in the order of €150 million this year.
Asked if the steps taken would attract foreign investors, Mr Cowen said that under the five-year plan that would see the Government take the necessary steps to come back within the stability and growth pact requirements.
He said the Government had instigated since last February a reduction of 7.5% on average in terms of the public pay and pensions bill, and this had not been achieved by any other Government.
18:47: Friends First chief economist Jim Power tells Drivetime that there is nothing in the Budget that could be considered 'pro enterprise'.
18:46: Bank of Ireland said it welcomes the initiatives concerning the extension of the Government guarantee of certain liabilities of Irish banks and to set up a National Asset Management Agency.
In a statement this evening, it said it will actively engage with the National Treasury Management Agency and the Government to explore how these initiatives will apply to Bank of Ireland.
The bank added that it will and assist in continuing to support customers, aiding economic recovery and, over time, rebuilding value for stockholders.
18:44: Chambers Ireland said that it hopes that the measures announced in the Supplementary Budget signal a move towards the restoration of Ireland's confidence and competitiveness.
CI's director of policy Seán Murphy said: 'The very significant tax increases, coupled with the Government's commitment to cost reduction and containment, demonstrate that all stakeholders are making a contribution.
However, Mr Murphy also said that the delivery of the report of the Commission on Taxation is required 'as a matter of urgency' so that the necessary taxation changes - including the broadening of the tax base to incorporate a local property tax - can be made sooner rather than later.
Although Chambers welcomed the establishment of the Asset Management Agency, it said that the decision not to reduce employers’ PRSI was 'disappointing'.
Mr Murphy also said that a reduction in the rate of VAT 'would have raised additional revenue and helped reduce the wide fluctuations in trade and services patterns in the border region arising from currency and VAT differentials.'
18:42: The Construction Industry Federation has said the Government had failed to include any stimulus for the hard pressed construction industry in the budget.
Its director-general, Tom Parlon, said the CIF had called before the budget for the National Development Plan to be used to create jobs in the construction industry and stimulate the economy.
But he said the cuts in capital spending this year meant it would be difficult for the investment promised next year and in subsequent years to take place. He also criticised what he claimed was an absence of measures to kick-start the stalled housing and property market.
18:39: Taoiseach Brian Cowen has said he doesn't accept the Government has taken soft options.
Speaking at a press conference, Mr Cowen said the Government recognised the impositions being asked, but the scale of the crisis was such that we need to raise revenues as well as cut expenditure.
He said that under the expenditure arrangements, what the Government has done since last July a total of €4.8 billion has been taken out of the 2009 spend - €1.8 billion in February, €1.5 billion in this Budget and last year took out another €1 billion.
He said the total expenditure savings for this year is €4.8 billion and the tax imposition is €3.7 billion, taking into account the Budget last October and today's supplementary Budget.
Mr Cowen claimed that a fair balance had been struck.
18:33: The Society of the Saint Vincent de Paul has welcomed the decision not decrease the main social welfare rates.
But its national vice-president, John Monaghan, said there was a concern that the rates may be cut in December, and that these cuts would not take account of the fact that prices being paid by poorer families were not falling.
He said the reduction in rent supplement sounded like a good idea, except there was no guarantee that landlords would reduce rent. As a result, he said, tenants may need to top-up the supplement.
He said the new pre-school childcare initiative sounded good, but said the devil would be in the detail.
18:31: The budget of the Department of Transport is to be cut by €300 million this year, a reduction of 1%.
A spokeswoman said €2 billion would continue to be spent on roads in 2009, as well almost €1 billion on public transport.
Projects such as Dublin's Metro and Rail Interconnector continue to go through the statutory process.
In the case of the Metro, it's unlikely the proposal and recommended bidder will before Cabinet for decision before December.
18:26: Arthur Morgan has described the halving of the dole for under-20s as an 'emigration tax', and said it represented an attack on young people.
He said the decision to means test families for children's allowance was punitive and called the reduction in rent allowance as a disaster.
Deputy Morgan said it was dubious of the Government to say they couldn't change the income tax rates mid-year, and said it was convenient that the same excuse was used for not touching certain tax relief schemes.
18:23: The Minister for Social and Family Affairs, Mary Hanafin, has said the new system of Early Childcare and Education will be a better use of the fund.
The special benefit to parents of children under five (€480 million) will be taken away and the Government is now going to spend €170 million on a pre-school fund.
Mary Hanafin said parents receiving the early childcare supplement will have it halved for the remainder of 2009. She said next year that fund will be completely gone next year and €170 million of it will be used to provide a free pre-school year starting in 2010.
She said creches and pre-schools will apply to be registered to the office of the Minister for Children and they will receive funding on the basis of how many children they accommodate. Mary Hanafin said 70,000 children will benefit from this.
18:16: Drivetime's Philip Boucher-Hayes says the decision to cut social welfare payments to people under 20 is causing contoversy. He adds, however, that there has been a broad welcome to the Government's decision to leave the rest of social welfare payments untouched.
18:11: Arthur Morgan also branded the Budget as an exercise in short-sighted accountancy.
He said it was shameful that the Government would spend billions of euro on saving the country's banks, but would not do the same to save people's jobs.
He said getting people back to work was essential for the country to get out of the current crisis. Deputy Morgan added that the VAT increases which were announced last year have proved to be an utter failure.
18:10: Brian Lenihan has explained further how the new Asset Management Agency will work. Speaking on Drivetime, he said the State will take an increasing stake in financial institutions if their losses are greater than what was expected.
If the bank has further exposures, he said the State will take up ordinary shares to protect the taxpayer from the increasing exposure which these banks have.
Mr Lenihan said the State is insisting on the banks taking their losses now for the sake of the economy, so that the banks can resume their proper operation as givers of credit in the economy.
He said that he believes that, in the medium term, this is a good investment for the State. The medium term being up to ten years.
18:05: Don't believe what we're telling you? Watch Brian Lenihan's full speech by clicking on the following link www.rte.ie/news/budgetnewsspecial/index_av.html?2522392,null,200
17:58: Sinn Fein's Arthur Morgan said it was a 'stinking' Budget that targetted workers and young families.
He said the decision to scrap the Christmas bonus to social welfare recipients will force vulnerable families to moneylenders.
17:57: SIPTU general president Jack O'Connor said the Budget has 'all the hallmarks of a centre right response to the crisis'.
In a statement, he said: 'It represents the socialisation of the toxic debt accumulated by the banks through reckless lending, and contrasts sharply with the imposition of the 2% levy and the doubling of the health levies on middle and lower income families.'
17:54: Ivan Yates says there is 'endemic waste' of money in the public sector. He says he heard nothing today that counteract this problem.
17:52: Speaking on Drivetime, Brian Lenihan said our tax revenue base has gone from €47 billion in 2007 to a projected €33 billion now, so we don't have any option about raising taxes.
He said we have to show as a state that we have a revenue base in existence.
Mr Lenihan said some of the old reliables, like tax reliefs and vat excise duties, were not an option in this Budget because of the number of people shopping in Northern Ireland for fuel and alcohol. For administrative reasons some reliefs could not be changed mid-year.
He said we need to create incentives to stop people shopping across the border.
Mr Lenihan said the Government sought to spread the burden as evenly as possible. He said he would have preferred not to have introduced taxes, but given the scale of the deterioration, we have to repair our revenue base.
17:49: Noel Whelan, barrister and political commentator, says the scrapping of the Christmas bonus could be politically explosive.
He also thinks that that the taxing of child benefit will not go down well either.
17:47: Drivetime's Fergal Keane says there is no great surprise around Leinster House to any of the measures announced in the Supplementary Budget.
17:46: Deputy Burton said the Budget has our citizens taking a severe hit in living standards for years to come, enduring whopping extra taxes of all kinds, to save financial institutions from the consequences of their own folly and greed.
On the new Asset Management Agency, she said lots of the impaired loans relate to land. She added it was scandalous and outrageous that toxic debts from outside Ireland will also be included.
17:42: The Government is to implement measures to support the 'Smart Economy' through investment and incentives to reach an R&D target of 2.5% of GNP by 2013.
Economy-wide R&D spend has already been trebled over the last decade. It is now around €2.5 billion, of which two thirds comes from the enterprise sector.
17:35: Joan Burton said the Budget did precious little to end the outrage of tax shelters.
She said a whole industry of accountants and lawyers exists for these and that all the tax shelter schemes and tax exile rules should be ended.
17:34: Business group IBEC has given a warm welcome to today's Budget. Turlough O'Sullivan, director-general of IBEC said it is a credible response to the current difficulties in the public finances.
'It sends a clear and positive signal that the Irish Government is taking effective remedial action over the next five year,' he said.
However, he also said that IBEC would have preferred a greater emphasis on cutting current expenditure immediately, rather than on increasing taxation.
17:32: Aideen Hayden, chairperson of Threshold, has said that a reduction in rent supplement will put social welfare tenants at great risk of homelessness.
'Rents have simply not fallen in high demand areas - such as Dublin city centre - and a reduction in the supplement will put social welfare tenants at great risk of homelessness,' she warned.
17:30 Pat McArdle, chief economist at Ulster Bank Group, said that although the establishment of the National Asset Management Agency is welcome, it does not answer the issues of what will the price be and how will this affect bank capital?
He said they are the two issues which have bedevilled such schemes in other countries.
17:27: The Vintners' Federation of Ireland has welcomed the Government's decision not to impose any hike in excise on alcohol. The VFI represents 5,000 pubs throughout Ireland outside Dublin.
In a statement, Val Hanley, President of the VFI, said that the drinks industry is hugely important to the economy, employing some 90,000 people.
He said that a huge number of jobs would have been put at risk in the event of any increase and further revenue would have been driven across the border.
17:25: Finance Minister Brian Lenihan says levies were the only method of raising tax revenue.
17:23: The Minister for Children and Youth Affairs, Barry Andrews, says the introduction of a free pre-school year for children will benefit around 70,000 children.
The provision will amount to three hours per day, five days a week over a 38-week year for children enrolled in playschools. Children enrolled in other childcare services will receive two hours and 15 minutes per day over a 50-week period.
All community and private pre-school services will be invited to enter the scheme. Children aged between three years and three months and four years and four months will be eligible.
17:20: Deputy Burton said the Government does not have the vital political capital to call the country to unity and that there will be little public consent to today's measures. She said that today's Budget could drive the economy into deeper recession and further erode confidence.
17:18 Labour's Joan Burton said this is the Budget from hell. She said a couple with two kids, and with one person earning €60,000, will pay €1,800 extra per year in health and income levies and they will lose €1,000 per year on the early childcare supplement.
17:13: Mary Hanafin says those under 20 who take up further education courses or FAS schemes will not have their social welfare money halved.
17:09: The Minister for Social and Family Affairs, Mary Hanafin, says the scrapping of the Christmas bonus for those on social welfare will save the Exchequer €156 million this year.
17:02: ASH Ireland has said that it is very disappointed with the 25 cent increase in the price of tobacco.
In a statement, it said that this approach to tobacco price runs totally contrary to the Government's stated policy of creating a tobacco free society.
ASH had sought a €2 increase on a pack of 20 cigarettes and related products. The statement also said that the fact that cigarettes are in reality cheaper now than they were five years ago is an encouragement for people to commence and to continue smoking.
Dr Angie Brown, chairperson of ASH Ireland, said that it is concerning that the threat of smuggling seems to have impacted on the Government's decision not to raise tobacco prices.
'Smuggling is a separate criminal issue - and it should not be allowed to impact on health policy decisions,' she said.
17:01: Richard Bruton has said he welcomes a scrappage scheme for five Junior Ministers but he said the public would like to see a more extensive scheme.
On capital investment, he said the reductions were not laying down the foundations of employment and he said that while he welcomed the commitment to use pension funds for PPPs he had expected more development of this idea.
He also asked what the justification was of not capping tax relief on pension contributions?
16:57: Ivan Yates, managing director of Celtic Bookmakers, says the income tax levy is 'crude' and 'indiscriminate'.
16:51: Friends First chief economist Jim Power describes the Budget as 'vicious', and says the Government’s tax projections are too optimistic. He claims the Government have 'bottled' it when it comes to cut-backs.
16:49: On the bad banks agency, Mr Bruton said it was a massive gamble and taxpayers were being asked to shoulder another €90 billion onto the public debt, which he said amounted to another 50% on top of the Government's estimate of current debt of 70%.
He said we are heading to the bad old days of a public debt of 120%.
16:47 Taxation lawyer Suzanne Kelly says anyone earning €75,000 is considered a rich taxpayer on the basis of today’s Budget.
16:42: Mr Bruton said the people are being asked again to rescue a failing Government. He said there was not an ounce of recognition of the huge and calamitous mistakes made by Government.
16:41: Fine Gael's Finance Spokesman Richard Bruton says the harsh economic measures put forward today are not the product of bad luck, but the product of bad government.
16:38: The Finance Minister commends the measures to the House, and concludes his speech. The Government side applauds, but there is no repeat of October's standing ovation.
16:37: Mr Lenihan says now is the time for the 'common good to prevail'.
16:35: A Stamp Duty trading scheme will be introduced.
16:31: An Enterprise Stabilisation Fund will be set up to help protect jobs in troubled businesses.
16:25: The Government plans to set up an asset management agency to take bad loans off the banks' balance sheets.
16:23: Petrol and alcohol duties will not go up.
16:22: The prices of cigarettes will rise by 25 cent and diesel goes up five cent a litre. The increases are VAT inclusive.
16:22: The ceiling for employee PRSI will rise from €52,000 to €75,000.
16:21: The income levy thresholds have been lowered, with the 2% rate kicking in at €15,000, 4% at €75,000 and 6% at €175,000.
16:21: The income levy rates announced in last October's Budget will be doubled to 2%, 4% and 6%.
16:19: DIRT will go up from 23% to 25%. The levy on non-life insurance premiums rises from 2% to 3%.
16:17: Capital Gains Tax and Capital Acquisitions Tax will both rise from 22% to 25%.
16:16: The Government will look at introducing a national infrastructure bond to raise money for capital projects.
16:14: The minister announces that the early childcare supplement will be halved from 1 May, and scrapped altogether next year.
16:13: The Commission on Taxation will decide on how to raise further money from taxing or means testing child benefit.
16:12: The Christmas bonus will not be paid this year, while those under 20 will have their dole payments halved.
16:11: There will be no increases in social welfare for the next couple of years, and rates may be reviewed later.
16:10: There will be a new scheme to allow civil servants over the age of 50 to retire. The scheme will begin in May. Those retiring will not be replaced unless sanctioned by the Department of Finance.
16:01: The minister has ordered a review of top-level public sector pay rates.
16:00: The minister announces there will be a 10% cut in political expenses, while long-term payments to TDs will be abolished.
15:59: Mr Lenihan says those with the most must pay the most.
15:57: Mr Lenihan says that the Government now expects the economy to shrink by 8% this year, with consumer prices falling by 4%.
15:55: The Finance Minister says that we became over-reliant on the construction industry.
15:54: Mr Lenihan says that many of the factors that contributed to the economic boom are still in place and will help in the hoped-for recovery.
15:53: Brian Lenihan begins delivering his speech.
15:52: There is a suggestion that the Dail doors have been locked and that members of the press received copies of the Budget documents in advance. Ceann Comhairle John O'Donoghue threatens to suspend the House.
15:50: Ceann Comhairle John O'Donoghue denies any knowledge of such matters.
15:49: The Opposition are unhappy that they are unable to take the Budget document out of the chamber, while the press are not subject to such restrictions.
15:46: Taoiseach Brian Cowen and Finance Minister Brian Lenihan takes their seats.
15:44: Senator Dan Boyle, Green Party Spokesperson on Finance, says there have been changes at boardroom level in the banking sector.
15:43: Michael Noonan, Fine Gael TD, claims the Irish public suspects the Government will bail out both the builders and the banks.
15:39: There are just five minutes to go now before Finance Minister Brian Lenihan delivers his second Budget in a matter of months.
15:36: Former Finance Minister Alan Dukes says the Government needs to terminate whole expenditure programmes.
15:32: Richard Curran, Deputy Editor of the Sunday Business Post, says the international investment community will be looking for signs that Ireland is prepared to take some pain in order reverse the economic downturn.
15:30: George Lee says people on all incomes are likely to find themselves in the tax net after this afternoon’s Budget.
15:07: Brian Cowen has said that a revised Book of Estimates will be published next week.
15:00: Speaking in advance of the Budget, Fine Gael leader Enda Kenny has challenged the Taoiseach to call a General Election.
Speaking in the Dáil, Enda Kenny asked Brian Cowen would he put today's Budget to the people, so that a mandate be given so the country can be led 'out of this mess'.
Brian Cowen re-iterated that there is no 'silver bullet' to remedy the economic problems. Referring to Fine Gael's weekend not to increase income tax rates, Brian Cowen said there will be a greater imposition on tax and that it's better to straight on honest about it.
Responding to Labour leader Eamon Gilmore's question about the possible creation of a so-called bad bank, the Taoiseach said Finance Minister Brian Lenihan has indicated that the banking system would be addressed in his Budget speech.
14:36: We haven't gone away you know! It's the calm before the storm as we await what is shaping up to be one of the toughest Budgets in the nation's history.
14:08: Both George and David were double-jobbing at lunchtime. Watch what they had to say on the One News by clicking on http://www.rte.ie/news/1news/
14:04: Hear for yourself what George Lee and David McCullagh had to say on the News At One by clicking on the following link http://www.rte.ie/news/news1pm/
13:30: David McCullagh says the Government could afford to lose the support of a couple of disgruntled backbenchers. However, he adds that the Cabinet has met ten times ahead of today's mini-Budget and any major surprises are unlikely.
13:28: Political Correspondent David McCullagh says TDs are beginning to arrive at Leinster House around now after a quiet morning on Kildare Street.
13:20: George Lee says it is anticipated that the Government will set up a vehicle to take toxic assets off the books of the banks.
13:14: Economics Editor George Lee says the PRSI ceiling for employees could well be raised.
13:08: Justice Minister Dermot Ahern says tax base will have to be expanded next year. He also said we have had some good years, but there are now some difficult ones ahead.
