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3 December 1998 Edition

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Workers in struggle: Don't believe the hype

Social welfare increases paltry



     
Progressive groups in Irish society have lobbied to remove the low paid out of the tax net. Finally the message seems to have struck home
Good news for the low paid, pensioners, carers, families with children, those paying childcare and as usual a good budget for business.

Charlie McCreevy delivered perhaps one of the most feelgood budgets of the last 20 years. However, once again a finance minister condemned the unemployed to increases in payments that barely keep pace with the rate of inflation.

Commending the budget to the house McCreevy said that, ``days, months and years from now, we will see that on the day when we had the extra few pounds in our pockets, we made the right decisions''.

Starting off his budget speech McCreevy seemed to be finally recognising that there are significant inequities in Irish society. He said that ``everyone is not benefitting equally''. He also proclaimed that ``fairness demands that we would use this opportunity to benefit those who have not done as well as most of us in recent years''.

Radical hype


McCreevy maintained that his budget was ``radical and reforming''. While elements of Charlie McCreevy's budget are most welcome, particularly the increase in the tax free allowances, it is indulging in self serving hype to say that this budget is radical.

In terms of the positive measures announced in the budget the unanswered question is why did it take so long? McCreevy admitted that this was the fifth year of positive economic growth so why did he and other previous finance ministers not act before now to meet what he called the demands of fairness?

For years progressive groups in Irish society have lobbied to remove the low paid from the tax net. Finally the message seems to have struck home and McCreevy delivered some positive measures. This is a testament to the lobbying of Sinn Féin and others over the years and it shows their work can reap rewards.

Charlie McCreevy started a positive process in his budget however there were some very questionable measures and too many piecemeal gestures.

£3 a week


An extra £3 a week was all McCreevy could add to unemployment payments. Before the budget the ESRI had pointed out that over the last four years social welfare payments had only increased by 16% compared to 22% for average income. This year that gap has widened.

The other important issue in relation to social welfare payments is that the level of payments are clearly inadequate. Yet McCreevy seems to want to retain the subsistence nature of the payments. Maybe this is an example of his commitment not to ``abandon prudence''.

However when it comes to welfare for business McCreevy abandoned prudence when announcing a cut in corporation tax from 32% to 28%. McCreevy promised to cut the rate of corporation tax to 12.5% over the next four years.

Piecemeal measures


One of McCreevy's piecemeal measures was on what he called ``labour market social inclusion measures''. McCreevy promised £21.7 million to help get the long-term unemployed into training programmes. He praised Mary Harney's Employment action plan showing that he has no conception of the quality of training actually being provided to the unemployed. Yes, there is a labour shortage in some areas. But these employers generally want workers with third level qualifications. How many unemployed people will get access to such training?

Another of McCreevy's more blunt measures was his announcement of more spending on hospitals. He promised to open new hospital wards and increase spending. However there was no recognition of the fact that existing wards are being closed across the 26 Counties. McCreevy could be throwing away money.

What is needed is a complete review of health spending and management structures in the health boards. Yet McCreevy's radical budget could not face up to this reality.

Waiting Lists


Many budget watchers were waiting to see what measures Charlie McCreevy would announce to solve the housing crisis. There was the positive announcement of an extra £45 million in local authority housing spending. This does not reflect the actual increase in local authority housing waiting lists over the last year.

If you were waiting for a tax on property developers exploiting house buyers don't hold your breath McCreevy was busy cutting betting taxes.

This wasn't the worst budget in recent years but if Charlie McCreevy were getting a report card it would read - could do better.


EU duty free


Isn't it amazing what a change of government can do for the European Union? The Dublin Government has for months been campaigning to retain duty free shops in Europe's airports even though they had unanimously supported their abolition in 1992.

The EU Commission said no and it seemed that only a minority of EU states wanted to retain the duty free industry. Now with a new government installed in Germany duty free shops could get a reprieve.

While the reprieve is welcome in the context of Irish jobs saved, it is sad to see that decisions can be changed in the EU not by democratic votes but by the larger states using their influence. It shows yet again that the EU is not run on democratic principles.

Not on Sunday


Three years ago Dunnes Stores outlets across Ireland closed because of industrial action by MANDATE workers. One of the grievances was being forced to work on Sundays without overtime.

Fianna Fáil promised to deal with the issue when in office. Last week Minister of State for Labour Affairs Tom Kitt introduced a new code of practice designed to get fair treatment for employees.

Trade unions had expected the minister to introduce legislation that would have upheld a worker's right to work on a Sunday only by choice. The new code does not extend that right to all workers, only those with two or more years service.

``We are the only country in Europe that does not have legislation to protect workers in this area,'' said SIPTU's General President Jimmy Somers. There is not even a mandatory penalty for employers. It seems that this is another case of a promise in opposition evaporating into a platitude in government.

Free market


The corks popped and the champagne flowed as 29 telecommunications licences were awarded by the industry regulator Etain Doyle this week as part of a free market for telecommunications.

Customers are promised lower prices but at what cost? If Irish jobs are lost the free market will have failed. If workers in the new companies are prevented from joining a trade union, as is the case in Esat, the free market will have failed.

Telecommunications is a vital resource for the economy. If it is not run in the interests of the Irish people the free market will have failed. Time will tell if it can pass these tests.

An Phoblacht
44 Parnell Sq.
Dublin 1
Ireland