Another crap budget and a Happy New Year!

Brian Cowen aka Santa Claus

Stephanie Lord

It’s that time of year again folks. Yep, it’s budget time. But this year is a little different due to the upcoming elections scheduled for this summer. Brian Cowen has got his Santa Claus costume on again and he’s going to open his magic sack and give us what we all want for crimbo. Because of course, we have been very good boys and girls all year – and haven’t passed even one motion of “no confidence” in his government. This, despite the fact that Bertie has been up to his eyes in crap all year. No surprise I suppose, and from what I make of it they’ll be back in again next term with Labour. Sure with their sluttish ways, it’s quite obvious that if they’re so willing to get into bed with the Blueshirts, they’d jump into the leaba with anybody (i.e. Fianna Fail) and to hell with the “working man” they claim to stand for……but that’s another story…..

Back to the Estimates though. So government spending is going up by a fantastic 8%. Wonderful. Or so you might think. And rather like Uncle Ernie they’ve had a “fiddle about” with the income tax exceptions, tax credits and tax bands. But a hundred quid here and there really doesn’t really make a whole lot of difference. And while I and all other right-thinking individuals welcome the rise in Government spending however there are many areas which will still not be addressed through these budgetary mechanisms. The wealth that has been generated over the last decade has not been used to deliver better public services or improved social protections. We still have almost 44,000 on social housing waiting lists, 6.8% of the population live in consistent poverty, and the UN Development Programme’s Human Development Report have placed the state 17th out of 18 high-income OECD countries in its human poverty index. This index was compiled by calculating life expectancy, adult literacy, long-term unemployment and risk of poverty.

For years the Government have known that a substantial portion of the population are living in poverty and have done nothing but make half-hearted promises which they fail to keep anyway with regard to social protections and alleviating the hardship faced by many throughout the Twenty - Six Counties today. We are constantly referred back to the shining light of social partnership agreements and told that this budget will achieve everything we have ever wished for, hand in hand with “Towards 2016”. This, for want of a better phrase, is bullshit. The government still have not even implemented all the agreements reached under the last social partnership deal – “Sustaining Progress”. I am not so naïve to believe that they will actually deliver on what they say they will. Fool me once, shame on you, fool me twice, shame on me etc. Except I’m a cynical sort so I never believe them in the first place.

It is an incredibly poor reflection on Irish society that 9.7% of all children in the 26-counties live in consistent poverty, with 22.7% living in relative poverty. This “poverty” is not the sort where a child thinks they are deprived because they do not have the newest Playstation or the latest Air Max. This is real and abject deprivation. It is the kind where their parents are unable to afford substantial meals, heating, adequate shoes and clothing, and are experiencing debt problems arising out of the ordinary costs of living. The failure of this government is exemplified by the fact that the life chances of children are still significantly influenced by the economic and social position of their parents. The effect of this rate of poverty on children is astounding. There are at least 50,000 children on the social housing waiting lists. This budget will do nothing to address their needs.

The Minister for Finance would have us believe that the Government is spending wisely and that the tax system here is completely adequate. In truth, basic economics will show you that a tax system is highly inequitable where the more you earn, the less you pay. To achieve a better, more inclusive, more equal society; you need to spend more on public services. To spend more on public services, you need to have more revenue. And bingo there ye have it; for more revenue you need to raise taxes. This raising of taxes however, needs to be done in such a way that it is no longer the low to middle income earner that is absolutely crucified in paying taxes (and stealth taxes introduced by the government to top it off). Successive tax cuts have benefited high-income individuals more and tax expenditures have re-distributed wealth in favour of those who have far too much wealth already than they even know what to do with.

This budget should have been used to prioritise households on low incomes and those who cannot cope with the rising cost of living, housing and have no access to essential public services and amenities. Previous budgets have failed those who have been left behind by the Celtic Tiger affluence and prosperity that certain sections of the population have benefited from.

The revenue exists to lift people out of poverty. The Department of Finance have stated that the public finances remain in good health with a projected surplus of 1% GDP. The cash flow is there but the will to change the face of Irish society is not. This Government have not performed for the lower earners and this budget will do little or nothing to help them. While a Garda service of 14,000 is to be welcomed, it will not put dinner on the table or pay the rent of the 24% of the population that live at risk of poverty. It will not help the 235,000 OAPs that are receiving an inadequate pension. Irish Pension rates are among the lowest in the OECD. Meanwhile this government continues to favour a regressive income distribution in favour of the well off.

If they really wanted to help the less well off, they could. But the less well-off do not line Fianna Fail pockets and slip them brown envelopes in the tents at the Galway races. They really can’t afford it when they’re earning €7.65 per hour (if they’re lucky) and there isn’t enough staff at the Labour Inspectorate to check that they’re even earning that.

So there it is. Another crap budget. Another wasted opportunity. Another year goes by where the government fails the people in spectacular fashion. Cowen has enough money and enough leeway in his Santa sack that if he fiddled about a bit more he could make real and significant progressive change in this state. But even though we’ve all been angelic boys and girls this year and haven’t been naughty at all, it’s only the boys and girls who have money and affluence already that will get anything in real terms out of Cowen’s Christmas box.