Budget lowered expectations for many farmers

WITH Finance Minister Noonan’s tax changes yet to come, the cuts in expenditure announced on Monday last by Minister Howlin will have a negative effect on all families, especially those who were already struggling to make ends meet.

For farm families in particular, the amendment to means testing for farm assist, and the capital asset test for determining whether farmers’ children can apply for a college maintenance grant, were two significant announcements in the small print of Minister Howlin’s Comprehensive Expenditure Report 2012-2014.

There is probably more devil in the detail yet to come out — but these two measures, coupled with cuts to disadvantaged area payments, child benefit in larger families, a 10% reduction in REPS payments, an increase in college fees, an increase in VAT, the introduction of a septic tank charge, a residential tax, increased healthcare insurance costs, can be added to the hangover from the plethora of tax increases and other cuts from previous years.