The Irish Congress of Trade Unions said that Budget 2017 should have been used to begin a much needed process of social repair after eight years of austerity.
"We saw some small steps but the budget lacked the ambition needed to begin rebuilding, which is so vital after years of diminished living standards."
Congress General Secretary Patricia King said: 'the best way to boost living standards would have been to prioritise the rebuilding of public services over tax cuts.
"Perhaps the major flaw in Budget 2017 was the decision to forgo €620 million in taxes through the continued VAT subsidy to the tourism and hospitality sector.
'that money could have built 3000 affordable homes for people. Despite high profits, the sector continues to have the highest number of Minimum Wage workers in the economy and the employers refuse to engage with the Joint Labour Committee," Ms King said.
Childcare
'the initiative on childcare is positive, but unfortunately it is a small one given the huge costs borne by parents and the poor working conditions in the sector. Parents will possibly benefit by some €75 per month, a fraction of the €1000-€1200 actual cost of care. Even with this package, our investment in childcare remains low by international standards and this has to be addressed.
USC Rate Cut
'the USC rate cuts will deliver some small gains, although it is clear that higher earners will benefit more than the lower paid. Rebuilding services should have been prioritised over tax cuts.
Housing
'the First Time Buyers" Grant will probably only worsen the housing problem. It will not tackle the issue of supply and will almost certainly inflate both prices and rents. The major beneficiaries of the First Time Buyers grant will not be those buyers, but developers. Even the Department of Finance's own advice advised against this move.
Social Welfare
"Congress has consistently advocated that welfare cuts imposed during the crisis be reversed and this marks a move in that direction. The decision to increase the state pension and all other social welfare payments by €5 per week is positive. However the failure to apply the same increase to those under 26 is wrong and should be reversed.
Self Employed
'this amounts to an increased tax free allowance for high earners and entrenches inequality in the tax system, given that the same offsets are not available to PAYE workers.
"Overall, Budget 2017 was a major opportunity to start rebuilding and repairing after eight years of crisis. The key priority should have been to boost living standards and deliver high quality services. Unfortunately, that ambition was not apparent in the measures unveiled today," Ms King said.
