Lenihan: No point in beating ourselves up

FIANNA FÁIL should not beat itself up for pursing policies which have contributed to the recession, according to Finance Minister Brian Lenihan.

He said during the boom too many houses were built and the Government overestimated its spending on public services.

Mr Lenihan said if the Government had foreseen the economic downturn it would have acted differently.

“But there is no point in beating ourselves up about it,” he said.

Mr Lenihan promised there would be new taxation introduced later in the year but this would not be focused on high earners alone.

“We constantly hear that somebody else should pay, we all have to pay,” he said.

In relation to the recapitalisation of the banks he said he was expecting a report on pay levels for banking executives in the next week and he would act on that report.

“As soon as the Government receives this report it will be implemented,” he said.

He also warned delegates to expect further drastic steps before the banking system was stabilised.

During a two-hour economic debate Fianna Fáil Ard Fheis delegates were told by Social and Family Affairs Minister Mary Hanafin that her department would track down anybody claiming welfare fraudulently.

“If there are people claiming entitlements and do not live in the country, their entitlements will be stopped... such welfare fraud will not be tolerated,” she said.

She also attacked subprime lenders who lent money to house buyers knowing they did not have the capacity to repay.

Ms Hanafin said they should sign up to the same code of conduct as the recapitalised banks and allow a 12-month grace period for homeowners in difficulty.

In a more subdued contribution Tánaiste Mary Coughlan said the country was still creating jobs despite the economic downturn and would recover.