Fianna Fáil to resist six-month delay in €5 pension rise

Michael McGrath TD says pensioners have waited for years already for increase

Fianna Fáil spokesman on finance, Michael McGrath and the party’s spokesman on  public expenditure and reform, Dara Calleary. Photograph: Alan Betson / The Irish Times
Fianna Fáil spokesman on finance, Michael McGrath and the party’s spokesman on public expenditure and reform, Dara Calleary. Photograph: Alan Betson / The Irish Times

Fianna Fáil will not support any moves by the Government to delay a €5 increase in the old age pension until the middle of 2017.

Responding to reports that the Government now intends to put back the increase until June or July of next year, Fianna Fáíl finance spokesman Michael McGrath and public expenditure spokesman Dara Calleary said they did not support the measure.

Mr Mr Grath said it was a Budget for 2017 and not for “half of 2017” and pensioners who had waited years for an increase should not be expected to wait another ten months before receiving an increase.

It is understood the Government is considering the six-month delay in paying the increase to give it more scope for other social welfare spending.

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Setting out Fianna Fáil’s approach to the Budget, Mr Calleary said: “We are not writing the Budget but the cornerstone of the Budget is the priority that is given to public services.

"Some in Fine Gael have had Damascus-like conversion to caring and public service in recent weeks.

“I would ask you to recall their record for five years in government between 2011 and 2016.”

Mr Calleary also took a swipe at the Minister for Social Protection.

"I am not convinced of the sudden caring sharing cuddly Leo Vradkar, " he said.

“He stood by when waiting lists in hospital increased…

“In relation to older people, the notion they are on the pig’s back is wrong. There is considerable old age poverty in this country and fuel poverty is more of an issue for old people.”

They were speaking at the launch of Fianna Fáil pre-Budget document which set out its priorities for the Budget.

Unlike the submissions of other parties in Oppostion, the document was not costed. Instead, the party set out the main issues it wants priorities from the “confidence and supply document” it had agreed with Fine Gael, including pension increases, increases for cares, chidcare, additional garda and substantially more resources being put into education at all levels.

Neither Mr McGrath nor Mr Calleary would specify progress on any item, although the negotiations between Mr McGrath and Minister for Finance Michael Noonan are at a more advanced stage. Mr Calleary said he would continue negotiations with Minister for Public Expenditure Paschal Donohoe over the weekend ahead of Tuesday's Budget.

Mr McGrath said the party did not agree with the proposed incentive for first-time house buyers arguing it would add to house prices. But he said the party would not oppose the Budgetary measure announced despite the disagreement.

He also criticised the “shifting goalposts” of the overall “fiscal space”, saying it seemed to have increased from €1 billion to €1.2 billion in recent days.

Harry McGee

Harry McGee

Harry McGee is a Political Correspondent with The Irish Times