Working families to bear the brunt of budget that lacks balance
Issued : Tuesday 7 April, 2009
Statement by Roisin Shortall TD
Minister of State, Department of Health with responsibility for Primary Care
Today's budget has placed an unfair burden on working families who will now have to pay increased income levies, a higher health levy and for many, the loss of mortgage interest relief.
People who rely on support of one kind or another from the state are also likely to feel the pain.
The Christmas bonus abolition is particularly mean-spirited and cutting welfare at a time of the year when people come under sever financial pressure will lead to people resorting to money lenders and high-interest loan providers.
The reduction of Jobseekers Allowance for under 20s is very questionable, especially in a context where there is little or no detail available on the training and upskilling options that will be available to recipients. Any scheme in this regard should be properly structured and should lead to real qualifications.
The reduction in rent supplement payments will also hit hard. There may be scope for savings as some rents fall, but not at the lower end of the market such as for single people in bedsits. There is a real risk that such a reduction will impact heavily in this segment and could increase homelessness.
There should be no reduction in Early Childcare Supplement, at least until the promised pre-school system is in place. Details on this are far too sketchy, and it seems that many details have simply not been worked out yet.
Last time they hit the pensioners. This time they hit the parents.
The Government has options in terms of making their savings. They could have made savings by tackling:
* Tax exiles
* The €300m on tax reliefs on pensions for the rich
* The €10m on artists' tax exemption
* The €400m on tax relief on non-health sector property-based schemes
* Some €400m on tax relief for landlords
The real test of this budget would be the measures it took to tackle unemployment crisis and the extent to which the various measures were fair. Minister Lenihan's budget has failed the test on both counts.
