Opposition critical of failure to address poverty

Political reaction: Today's Budget was "deeply conservative" budget by a conservative minister in a conservative government, …

Political reaction:Today's Budget was "deeply conservative" budget by a conservative minister in a conservative government, the Labour Party's finance spokeswman, Ms Joan Burton said in response to the package.

Ms Burton said the Budget was short-sighted and that the public had been short-changed.

The minister had implemented the "biggest stealth tax of all" by freezing the standard rate tax band.  In doing so, he had ensured that tens of thousands of workers would be moved back to the highest tax rate, she said.

"Apart from that, it was a budget of silences. Silent on health care, silent on education, silent on crime, silent on medical card holders, silent on housing. Silent on child poverty - with an increase in child benefit that wouldn't buy a packet of pampers. It is silent on the savage 16 cuts."

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"There no indication in this Budget that this Government has a grip on our country's economic and social future. This Government squandered the boom. Now it  seems set to fritter away the chances offered by an international recovery."

The value of this welcome increase in the minimum wage would be significantly eroded, because of the Government's failure to adequately amend the tax code, Ms Burton said.

She also said the increase in child benefit of €6 per month was "wholly inadequate" and a betrayal of election promises. There was also nothing in the Budget to show the Government had a coherent agenda to tackle crime or hospital waiting lists, the Labour spokeswoman said.

Fine Gael spokesman Richard Bruton said that the Budget was lacking in courage and strategy. Speaking in the Dáil, he said said the real price of these estimates would be seen in stealth taxes, and the policy of decentralisation was another 'pipe dream'. Mr Bruton said the tax code was in need of reform. He said that Mr McCreevy had brought in a tax system that could have been equitable, but then went down the road of the Sepcial Savings Scheme, which was a €3bn Government giveaway, but only to those who could afford to save.

Mr Bruton said that according to recent figures, 'Rip-off Ireland' was second-worst only to Calcutta on competitiveness.

He said that overall, the Budget was a lost opportunity for change.

The Green Party's finance spokesman said Mr McCreevy had kept Fianna Fail's 'men of property' happy with a 'Bob the Builder' Budget.

"In extending tax relief on property based schemes, Charlie McCreevy has looked after Fianna Fáil's paymasters.  Many of these schemes have long outlived their usefulness and some,  such as the car park and holiday home schemes should never have been introduced. While the Green Party welcome the continuation of Section 481 Film Relief and a more focussed Business Expansion Scheme, the
continuation of property based tax relief is scandalous."

"Those out of work or on low incomes will be disappointed with this Budget as the Minister for Finance has spent the last 12 months introducing a raft of indirect stealth taxes which are crippling these people.  For example, it is extremely disappointing that the Minister refused to row back on his decision to
cut funding for Community Employment Schemes."

Deputy Boyle said promises on future infrastructure spending were "hard to take given the past record of this Government".

He added that the complete lack of any mention of the environment in the Budget was a clear reflection of the Government's lack of commitment to environmentally protective initiatives.

Sinn Fein's Dáil leader and finance spokesman Mr Caoimhghín Ó Caoláin said the Budget was one of inequality and "an empty package wrapped in tinsel paper marked 'decentralisation'".

He said: "This  is a Budget of Inequality which does nothing to narrow the gap between wealth and poverty maintained by Minister McCreevy in every Budget since 1997.

"The Government has broken its promises to deliver substantive increases in child benefit  and  old age pensions to levels that will meet the National Anti-Poverty Strategy targets. An increase of €1.50 and €2 per child per week is pathetic from a Government that boasts that it is addressing child poverty.

"The  social  welfare  increases  in  this Budget are inadequate and are already undermined  by stealth taxes such as local authority charges, the savage 16 cuts to welfare entitlements and the cuts in CE schemes. It is disgraceful that the government did not use its increased revenue to reverse these cuts, especially the miserly and dangerous rent allowance cut."