METRO Thursday, December 10, 2009 D Budget 2010 Budget unfair and anti-family claims GilmoreFINANCE Minister Brian Lenihan may have believed he had delivered a tough but fair budget yesterday and as expected the Opposition were quick to tear into his plans although some facets were wel- comed by interested parties. Labour leader Eamon Gilmore de- scribed the Budget as viciously anti- family, fundamentally unfair and socially divisive. This is a budget that mercilessly targets low and middle incomes, rather than ask- ing those who are best in position to do so to bear some extra burden, he said. Carers, the unemployed, single par- ents, those with disabilities, county council workers will all see their meagre basic incomes fall even further. Fine Gael deputy leader Richard Bru- ton was quick to round on the Govern- ments self-imposed paycut. An office cleaner in the Department of Finance will take a greater proportionate pay cut than Brian Lenihan, he said. He pointed out that the 15 per cent pay cut imposed on ministers salaries and 20 per cent on the Taoiseachs included the ten per cent cut already taken this year. The Governments attempt to portray this as a 15 (and 20) per cent pay cut is false and deceptive, he added. Unions reacted angrily to what they de- scribed as unjust and uncaring. President of the Irish Congress of Trade Unions Jack OConnor described it as the most callous budget introduced since the 1930s. Meanwhile, Congress general secretary David Begg said it was marked by a criminal neglect of any serious initiative on jobs and job protection. On a positive front, the employers group Ibec has warmly welcomed the Budget. Ibec director general Danny McCoy said: This budget stops the deficit rising and puts Ireland on a sustainable path. The right thing to do is the hard thing to do, and the right thing has been done. BY ross mcdonagh Transport to receive 2.8billionTRANSPORT Minister Noel Dempsey announced a 2.787billion budget for transport in 2010. Some 920million of this will go to public transport and 1.72billion for roads. At 625million, the capital provision for public transport investment has been reduced by 3million in 2010. In the greater Dublin area, the budget is expected to see the completion of the Kildare Rail Project and the Luas extension to Cherrywood. Work will also continue on the Luas extension to Citywest for completion in 2010. Priority will also be given to the delivery of Metro North and the Dart Underground programme. However, Minister Dempsey said that planning and design work on Transport 21 projects will continue with a view to the earliest possible delivery as financial resources become available. Meanwhile, the public transport subvention to CIE has been reduced by 8.8 per cent, or 27million to 276million. Digest INCOME As pArT of a 1billion reduction in the public sector pay bill, those earning up to 30,000 will have pay cut by five per cent. salaries above this will lose 7.5 per cent between 30,000 and 70,000; ten per cent between 70,000 and 125,000. Those earning between 125,000 and 165,000 will face a flat eight per cent; those earning between 165,000 and 200,000 face a 12 per cent cut; and a 15 per cent cut awaits those on 200,000 or more. This includes ministers, with Taoiseach Brian Cowen and president Mary McAleese taking a 20 per cent hit. Judges get to keep their wage, while minimum wage will remain as is. TAX EMpLOYEE prsI, the Health Levy and the Income Levy introduced last year are to be consolidated into a single universal social contribution in 2011. Income tax rates will be designed to hit higher incomes. All Irish nationals and residents whose worldwide income exceeds 1million, and whose Irish- located capital is greater than 5million, must pay an Irish Domicile Levy of 200,000 per year no matter where they pay tax. The VAT rate has been returned to 21 per cent. The move will cost the exchequer 140million next year, hopefully justified by increased spending in the republic. SOCIAL WELFARE CHILD benefit has been slashed by up to ten per cent, reducing monthly payments by more than 16 to 150 and 187 per month. Welfare-dependent families will instead get a qualified child allowance of an extra 3.80 per week, with low-income families also compensated. Unemployment benefit has been cut by 4.1 per cent 8 per week to under 200. For new applicants aged 20 and 21, who have no dependent children, the rate for Job-seekers and supplementary Welfare Allowance has been dropped to 100 per week, and to 150 for 22- to 24-year-olds. The Old Age pension remains untouched. TRANSPORT GOOD news and bad news the long awaited scrappage scheme will finally launch, running from January 1 to December 31, 2010. Anyone buying a 2010-registered car can get 1,500 in vehicle registration tax relief by trading in their old car, which must be at least ten years old and meet certain conditions. However, the new Carbon Tax of 15 per tonne will add 4.2c per litre to petrol, and 4.9c per litre to diesel, effective from midnight last night. This increase comes on top of an 8c per litre increase on petrol in the budget of October 2008, and a 5c per litre increase on diesel last April. CIGARETTES & ALCOHOL THE old reliables are not as reliable as they used to be; cigarettes stayed at the same price for fear of pushing more business the way of illegal smugglers. The price of alcohol dropped in an effort to entice shoppers away from crossing the border and reinvigorate the struggling pub industry, including a reduction in excise on alcohol of 12c per pint of beer or cider; a 14c cut on a measure of spirits; and 60c off a bottle of wine. However, Mr Lenihan warned vintners to play their part in making the cost of alcohol more competitive and pass on the savings to the consumer; otherwise the reductions would be reversed. HOUSEHOLD BILLS HOMEOWNErs who bought at the peak of the boom and are now in negative equity will be entitled to mortgage interest relief support until 2017, before it is abolished entirely. Medical card holders will be charged a prescription charge of 50c per item. Water charges are to be introduced in the future. The new Carbon Tax will bring about increases to heating oil and gas prices from next May. The application of the tax to coal and peat will be reviewed to ensure they are not sourced from the North, where lower environmental standards apply. A vouched fuel allowance scheme will also be developed for low-income families. 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