Government faces criticism for kite-f lying
FINE GAEL and Labour have been criticised for ‘kite-flying’ Budget giveaway promises in the media in a blatant attempt to win votes.
Yesterday’s press f eatured details of a raft of mooted tax cuts and benefits increases to come in next month’s budget, the last before the general election.
They included details in our sister paper the Irish Mail on Sunday of a new child benefits package worth €200million (with a €5 hike in the children’s allowance the highlight) and the same figure to be spent on law and order with upgrades to equipment and infrastructure for the gardaí.
Elsewhere, it was suggested that farmers, entrepreneurs and businesses will benefit from new tax reliefs, and it is predicted that all PAYE workers will reap the benefits of a two percentage point cut in the Universal Social Charge.
However, Fianna Fáil whip Seán Ó Fearghaíl said the public would see through this clear example of kiteflying, and urged prudent spending instead. ‘Today we see a series of
‘A cynical attempt to buy votes’
reports promising reduced taxes, extra spending and a raft of new measures – the Government about to announce something for everyone in the upcoming Budget; earlier assurances that a prudent approach to the State’s finances would be taken enthusiastically disregarded,’ Mr Ó Fearghaíl said yesterday.
‘How they intend to pay for all these measures while staying within the confines of a €1.5billion spending cap is anybody’s guess.
‘The Taoiseach claims he wants every home in the country to feel the benefit of the economic recovery but it is his Government that has targeted those who can least afford it through the introduction of 45 stealth taxes in four regressive budgets.
‘The Irish public can see through this blatant kite-flying for what it is: nothing more than a cynical attempt to buy votes. This Fine Gael-led government won over voters with talk of a democratic revolution but has now exposed itself as trapped in old-style politics of broken promises and buying elections.’
According to sources at the Department of Public Expenditure, the investment in childcare will see €70million allocated to a €5 increase in child benefit payments; along with €130million for an extra year of pre- school and to cover the part-implementation of a plan for two hours of after-school care in primary schools for children of working parents.
But there are no proposals to give families a tax break to pay for private childcare in the Budget, which will be announced on October 13.
Ministers are also considering a plan to cut the controversial USC by two percentage points for lower and middle- i ncome earners, sources said.
That cut would give someone earning €35,000 an extra €350 per year.
It is understood that Tánaiste Joan Burton may go so far as to suggest phasing out the USC entirely.
The Government also wants to bring in measures to give children with disabilities access to pre-school care.
‘ The c hi l dcare benefits are completely on the expenditure side, so there will be no tax breaks,’ said a source at the Department of Public Expenditure.
The insider added: ‘ Don’t forget that Howlin, in his budget speech last year, said that he was increasing the child benefit by €5 and he said that if circumstances permitted he would increase it by €5 in the next budget.
‘Circumstances do permit it. The other area they’re looking at is the free pre-school year. I think between the two of them the money is around €200million.’