Unions critical of childcare package

TRADE union leaders said the childcare package was distinctly underwhelming and were also critical of the decision to retain tax reliefs for private hospitals.

“In effect, the minister appears to have taken a political decision to alienate as few people as possible, on the issue of childcare,” Irish Congress of Trade Unions General Secretary David Begg said.

“This has resulted in the allocated resources being spread too thin. Childcare requires strategically targeted measures.

“An extra €19 per week - which is what the Special Childcare Supplement amounts to - will have very little impact on people’s childcare bills, with the average cost amounting to €180 per week,” he said.

Mr Begg said that meant lower income families will end up subsidising high income families.

He pointed out Congress had called for the introduction of a ‘voucher scheme’ worth €70 per week and that there was some considerable difference between the two figures.

“While there were welcome measures, such as the increase in Maternity Leave, given the resources that were at this government’s disposal, this represents a serious missed opportunity,” he said.

Mr Begg was also critical of the decision to retain tax reliefs for private hospitals.

“The Government seems determined to continue with health privatisation by stealth - which contradicts its own stated policy,” he said.

“The only people to gain from this will be private investors and speculators.

“The taxpayer will lose money, the health service will suffer and the public will not receive the healthcare system they deserve, one based on need rather than ability to pay.”

Mr Begg said there were some positive measures in the Budget, particularly with regard to social welfare payments and widening of the tax bands.

However, he warned that not enough may have been done to ensure those on the minimum wage don’t slip back into the tax net, when it is increased in August2006.

Rosheen Callender of SIPTU’s National Women’s Committee said that, while the Government’s commitment to increasing the supply of childcare places was very welcome, the amount promised to parents to help them with the costs, at less than €20 per week, was far from adequate.

“Given the resources available this year, and the extent to which working parents’ expectations had been raised prior to the Budget, a payment of less than €20 per week, which is only about 10% of the actual cost of childcare nowadays, is extremely disappointing,” she said.

“Hopefully, it will be increased substantially in the future.”