METRO FREE Thursday, December 10, 2009 cuts across the board Tough call: A worker at DID Electrical in Lucan, watches a bank of TVs as Brian Lenihan delivers his speech in the Dil Picture: PA 4billionBudget 2010 BY BrIAn huTTon PUBLIC sector workers and welfare recipients last night bore the brunt of one of the most pun- ishing Budgets in the countrys history. In a much-feared 4billion cost-cutting pack- age, Finance Minister Brian Lenihan cut civil servants salaries by up to 15 per cent, halved unemployment benefits for young claimants, cut dole payments by 8 a week, reduced child benefits by 16 a month and introduced a 50c charge on medical prescriptions. Mr Lenihan tried to comfort the nation with a promise the worst was over and he would not deliver a Budget as tough again. The effort demanded of every citizen in this Budget is substantial, but it is the last big push of this crisis, he said. But opposition leaders denounced the measures as unfair and short-sighted, hitting people when they are already down. Labour leader Eamon Gilmore said the Budget was viciously anti-family, fundamen- tally unfair and socially divisive. Everyone knew that a tough budget would be required because of the unprecedented eco- nomic shambles created by Fianna Fil over the past 12 years, but few people could have antici- pated a budget that would be so lacking in fair- ness, he said. Fine Gael deputy Richard Bruton said: You have hit people who are down. The hitting of child payments is very short-sighted. Sending out a signal to international markets and investors, Mr Lenihan admitted the country had been shaken but promised it was now on the road to recovery. Yes, we have endured a traumatic 18 months, he said. The speed and ferocity of the reces- sion has knocked us off our stride. But by taking the difficult but necessary measures now, we will rebuild our nations self confidence here at home and our reputation abroad. Petrol and diesel went up from midnight by 4c and 5c respectively as part of a new carbon tax, which will also be applied to home heating oil, coal and peat briquettes from next May. In a move to stem the flow of shoppers to Northern Ireland, excise duty on a pint of beer and cider will come down 12c, with 14c off the price of spirits and 60c off a bottle of wine. A VAT reduction from 21.5 per cent to 21 per cent is also expected to hit cross-border trade, on the day the UK raised its VAT rate. Among the most contentious of the measures are the public sector pay cuts, which unions have threatened could spark mass strikes. Salaries up to 30,000 will be cut by five per cent, with 7.5 per cent cut on the next 40,000, and another ten per cent on the next 55,000 with top earnings of more than 125,000 drop- ping between eight per cent and 15 per cent. Taoiseach Brian Cowen will take a 20 per cent pay cut, while ministers will earn 15 per cent less. One of the few surprises in the Budget was a new 200,000 levy on Irelands super-rich who are tax-resident offshore. Budget reaction and the key points see Pages 2 & 3 Please see Page 6 index.html2.html3.html4.html5.html6.html7.html8.html9.html10.html11.html12.html13.html14.html15.html16.html17.html18.html19.html20.html21.html22.html23.html24.html25.html26.html27.html