Budget Misses Big Picture
6 Dec 2005
Congress today (December 7) characterised the Budget introduced by Minister Cowen as one which "missed the big picture."
Congress General Secretary David Begg said that despite expectations, the Childcare package proved to be "distinctly underwhelming."
Mr Begg said: "In effect, the Minister appears to have taken a political decision to alienate as few people as possible, on the issue of childcare. This has resulted in the allocated resources being spread too thin. Childcare requires strategically targeted measures.
"An extra €19 per week - which is what the Special Childcare Supplement amounts to - will have very little impact on people's childcare bills, with the average weekly cost amounting to €180 per week.
"What this means, in effect, is that lower income families will end up subsidising high income families. That is unjust."
Mr Begg pointed out that Congress had called for the introduction of a 'voucher scheme' worth some €70 per week and that there was "some considerable difference between the two figures."
In reference to the increase in Child Benefit, Mr Begg said this was something that had been long promised.
"While there were welcome measures, such as the increase in Maternity Leave, given the resources that were at this government's disposal this represents a serious missed opportunity."
Mr Begg was also critical of the decision to retain tax reliefs for private hospitals.
"The government seems determined to continue with health privatisation by stealth - which contradicts its own stated policy."
Mr Begg said the recent Congress study on the health service - The Health Report: An Agenda for Irish Health Care Reform - clearly showed that reliefs for private hospitals will impose major costs on taxpayers and will not deliver promised extra capacity for the health service.
"The only people to gain from this will be private investors and speculators - the taxpayer will lose money, the health service will suffer and the public will not receive the health care system they deserve, one based on need rather than ability to pay."
Mr Begg said there were some positive measure in the Budget, particularly with regard to social welfare payments and widening of the tax bands.
But he warned that not enough may have been done to ensure those on the minimum wage don't slip back into the tax net, when it is increased in August 2006.
ends