Kenny Makes Historic TV Address Ahead Of Tough Budget

Ireland remains in crisis, according to Taoiseach Enda Kenny, who delivered a ten minute prime-time TV address to the nation on Sunday night.

State-of-the-Nation addresses are extremely rare in Ireland.

Mr Kenny's was only the sixth in history, and no leader has chosen to deliver one in three decades.

But given the scale of the economic challenges facing the country, and the harshness of the measures being unveiled in the budget on Monday and Tuesday, Enda Kenny decided to look the Irish people in the eye and tell them what to expect.

"This budget will be tough - it has to be," he said.

His predecessor Brian Cowen was often criticized for not talking directly to the Irish people during the crisis of the past few years.

But Mr Kenny's oration on Sunday night is not likely to inspire too much praise - its message being far too serious and harsh for that.

"I know this is an exceptional event, but we live in exceptional times and we face an exceptional challenge," he warned.

"At the end of last year our economy was in deep crisis and... we remain in crisis today" he added.

"I would love to tell you tonight that our economic problems are solved and that the worst is over but for far too many of you that is simply not the truth."

He pointed out that the state is spending €16 billion more than it is taking in every year.

He said the Budget to be delivered in a new format over two days on Monday and Tuesday would cut public spending by €2.2bn and raise €1.6bn though taxes.

Income tax would be left alone, he said, in order to give those working certainty, but the money would have to be raised in extra indirect taxes.

In contrast to the tone struck by the previous Fianna Fail-led government, who often talked of how "we all partied", Enda Kenny was keen to let the public know that he shared their frustration at the unfairness of the economic hardship.

"Let me say this to you, you are not responsible for this crisis," said Mr Kenny.

"My Government is determined that now the necessary decision and challenges are made to ensure that this is never allowed to happen again."

Ireland has had four austerity budgets over the past three years, and while it has gained praise internationally for meeting the conditions laid down in the EU/IMF/ECB bailout, the domestic economy has shrunk and the public are feeling the pinch.

And the continuing economic crisis in Europe is destroying any prospects of an export-led recovery.

"I do not for a moment want to make it sound simplistic or painless. It is not," said Mr Kenny, who said Ireland will move to a deficit of 3% of GDP by 2015.

"We are on a four year path to recovery. This, our first Budget, is a necessary step, but it will include cuts to many worthwhile projects."

He said his government was determined to prioritize creating jobs and protecting the most vulnerable in society.

But he added: "I wish I could tell you that the Budget won't impact on every citizen in need, but I can't."

In his speech, the Taoiseach announced that a referendum to abolish the Seanad would be held in 2012, and that 50 quangos would be abolished or merged and the public sector downsized by 23,000 people by 2015.

Perks given to former Taoisigh like free mobile phones and staff allowances are to be withdrawn.

In an attempt to ensure the speech was not all doom and gloom, Mr Kenny tried to sound upbeat too.

"I am very optimistic for the future," he said, "I want to be the Taoiseach who retrieves Ireland's economic sovereignty, and who leads a Government that will help our country succeed."

Opposition parties were to be given a chance to respond to the Taoiseach's address on Monday night in the interests of fairness.