Irish opposition vows to shelve tough budget

Opposition politicians in Ireland have vowed to shelve the government's proposed austerity budget if they win early elections in 2011.

"The next government will not be bound by it," Enda Kenny, leader of the Fine Gael opposition party, said in the Irish parliament on Thursday.

"This plan is the price of political failure, and it's very heavy price indeed," said Labour party leader Eamon Gilmore, adding it doesn't do enough for job creation. 

The comments came one day after the government of Prime Minister Brian Cowen unveiled the harshest budget measures in its history, a four-year plan to claw back 15 billion euros ($20.4 billion Cdn) using spending cuts and extra taxes.

Roughly 24,000 state employees could lose their jobs and the sales tax could soar to 23 per cent.

Altogether, the program would cut spending by about one-fifth and raise five billion euros ($6.8 billion Cdn) in extra taxes over the next four years. The proposed budget includes welfare cuts of 2.8 billion euros ($3.8 billion Cdn) and income tax increases of 1.9 billion euros (2.6 billion Cdn).

The tough budget is a condition set by the EU and IMF for their aid in bailing out the country's troubled banking system.

Cowen has vowed to hold an early election in March after the budget passes. The Green Party, which is a member of Cowen's coalition government, has threatened to pull out after the budget passes. Cowen's party is not expected to retain power after he calls a national vote.

However, Cowen faces a smaller test before that. A byelection being held Thursday could make it harder for him get his government's tough budget passed.

Pearse Doherty of the Sinn Fein party is expected to emerge victorious in the byelection in the northwest constituency of Donegal South West. Doherty has vowed to vote against Cowen's budget.

The prime minister left the seat vacant for 17 months out of fear that an opposition party would win. A Sinn Fein victory would cut Cowen's majority in the Irish parliament to two.

A winner is expected to be declared on Friday.