Mixed reaction to Budget

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Mixed reaction to Budget

Most PAYE workers heaved a sign of relief to find that after several years of tough budgets, there wasn’t to be any increase in PRSI, the USC or the income levy.

Thursday, 17 October 2013
10:40 AM GMT



Senior citizens feel they’ve been unfairly targeted once again and the cut in social welfare benefit to young people was also considered harsh, but most PAYE workers heaved a sign of relief to find that after several years of tough budgets, there wasn’t to be any increase in PRSI, the USC or the income levy.

The continuance of the lower 9% tax rate for the hospitality and tourism industry received a broad welcome from the sector, while the increase in prescription charges was lamented. Free GP care for children under five was another very popular announcement and measures to help reenergise the still very sluggish construction sector were welcomed.

The mixed views included Sinn Fein deputy, Sandra McLellan’s contention that the budget was ‘cynical, unjust and cruel’.

Speaking rom Leinster House on Tuesday, she stated that the Government was once again targeting the most vulnerable, while steering well clear of tackling the wealthy.

“The cynicism of the Government is truly breath-taking, and it is very evident that they have made a calculation, that they will target those who are least able to defend themselves. The poor, the sick, the elderly have all been targeted.

“I am particularly disgusted at the ending of the bereavement grant. This was a payment which I know people relied upon, and I think it is appalling that the Government would consider putting an additional burden on people at such a difficult time as bereavement.

“The cut in the Jobseekers Allowance to €100 for those on it currently to age 18-22 and to age 24 for new entrants from January 2014, and €144 to those reaching 25 on that date, is a cut that illustrates the lack of concern this Government have for young people. It is cruel and punitive.

“I am quite certain that following this, many young people across East Cork and North Cork will be looking at flights to Perth, Melbourne, London and wherever else. It is not possible to survive on such a rate, and in particular it is very hard on young families.”

The East Cork TD went on to say that budget contains ‘cut after cut’, targeting the vulnerable including cuts to rent supplement, discontinuing of Mortgage Interest Supplement for new entrants, cuts to invalidity pension and increase in prescription charges.

“The ending of the telephone allowance from 1 Jan 2014, and maternity benefit for new claimants in 2014 will be cut to €230. Illness benefit will now only kick in at 6 days, as opposed to 3,” she said.

 “I have been vocal for some time now, on the dreadful impact that reductions in allocation of discretionary medical cards are having on families. Now we see the Government expecting a review of medical cards eligibility to produce a saving of €113m. In reality, what this means is that thousands of unwell and elderly people will lose their medical cards, or fail to have them renewed. That is appalling and extremely short sighted,” she concluded.

Independent TD Mattie McGrath said that while there were significant elements of the Budget that could have been far worse, it was a budget which will disproportionately hit ‘those least able to afford it’. “The removal of the grant to cover death expenses is a particularly cruel cut as is the removal of elements of the Household Benefits Package like the free phone usage for the elderly,” he said.
He too denounced the cuts to social welfare payments for the young unemployed and said it would lead to further emigration. “Many of the savings to be made from these cuts are really quite small and yet they will affect a significant amount of people and contribute to a deteriorating quality of life. It is hugely disappointing to realise that this Fine Gael/Labour Government have deliberately excluded the rich and targeted the poor and vulnerable,” he said.

He was happy to see introduced the incentives for a Home Renovation Scheme. “This will greatly assist in the elimination of the black economy in construction. My own pre-budget submission also called for retention of the 9% VAT rate on Tourism services and I am certainly glad to see that the Minister has been persuaded of the merits of retaining that VAT level for the next year,” he commented.

Ultimately, however, he said, people will very cheated when the detail of this Budget becomes more apparent.

“The Government went out of its way to assure people that great news was on the way, that we would all be left open mouthed at their generosity; nothing of the sort has materialised. They may make big political play about the likes of the banks contributing €150 million over the next year but this needs to be seen in the context of the fact that the banks have cost the State billions. In the coming days we will have to digest more thoroughly the main savage elements of this Budget and I have no doubt that it will be a bitter pill for hundreds of thousands of people to swallow,” he concluded.

Fianna Fail councillor Frank O’Flynn said the medical card changes was a further savage attack on the elderly and, combined with the increase in prescription charges, ‘would cause great hardship’. He also criticised the axing of the bereavement grant which he said would greatly affect people at a time when they are vulnerable.

“The loss of the telephone allowance was a further blow to the elderly, particularly for those living alone for whom it is often their only means of social contact. It would also adversely affect the operation of their personal alarms,” he pointed out.

“The reduction in child benefit for the fourth child is a serious blow to families on tight budgets he said, while cuts in CAP and REPS payments will affect those involved in the agri sector. The combined cuts, together with increased charges and the introduction of water rates, is going to make it difficult going for very many families,” he warned.




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