Budget €2.8bn for poor, says SVP

THE Society of Vincent de Paul (SVP) challenged the Government yesterday to provide €2.8 billion in next month’s Budget to help people who have gained least from the country’s recent prosperity.

Calls for help to the charity's Dublin head office alone jumped by 94% to 7,605 between January and September this year, reflecting the impact of the economic downturn on marginalised people and communities.

In some areas, SVP has been forced to increase its spending to assist people in need by over 20%. The society says its pre-Budget submission is based on the practical experience of its 9,000 voluntary members.

The 160-year-old charity suggests the Government redistribute wealth by a series of measures, which include raising the top income tax rate by one percentage point and "significantly" increasing the current 20% capital gains tax when assets are sold.

However, the society said it does not support any increase in indirect taxes since these take no account of ability to pay and hit people on fixed or low income hardest.

Launching the submission, vice-president of SVP Professor John Monaghan said: "Government needs to take steps urgently to ensure that those who benefited least during the so-called Celtic Tiger are not further penalised now that things are much tougher for them."

He said a series of price increases in essential products and services and Government cutbacks had seriously eroded any small improvements there might have been for those on the margins.

"Thousands of people especially those served by SVP are suffering badly. These are the people worst hit by the chaos in our health, education, housing and transport services," he added.

SVP has called for action in five areas, including the benchmarking of welfare payments and pensions. It said the lowest social welfare weekly rates should be increased to €140 (up €15.20) and the old age pension should rise by €14 to €158, with similar increases for other welfare rates. This would cost €750 million. SVP has also called for child income support and child dependants allowance ld also be increased, at a cost of €280m.

The charity calls for all those on the €14,196 minimum wage to be removed from the tax net. In the last year, it says, 50,000 people entered the tax net. The proposed change would cost €500 million.

SVP calls for the completion of the 6,000 social housing units promised in the national plan by end-2004 at a cost of €1.1 billion. To end the "scandal" of Travellers living on the side of the road, 300 new and refurbished units of Traveller-specific accommodation should be provided (€40 million).

All under-18s in households headed by adults earning less than €14,500 a year should have free medical cards.

The society says a strategic focus should be placed on education support for pre-school and primary school children. "If we really wanted to eradicate educational disadvantage you start at the bottom and you put time and effort in there.

"For the families we are dealing with, keeping the children in primary school is a great achievement. We want to keep them in the system," said Prof Monaghan.

It would cost €17.5 million to provide 250 early start teaching teams in disadvantaged areas, while the charity wants higher back-to-school clothing and footwear allowances.

As the Irish economy begins to pick up again, Prof Monaghan asked: "Will we continue to use our increasing affluence and prosperity to favour those who have already gained most over those who have gained least? It's a clear social and political choice for the Government to make."

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