Government ‘robbing poor to protect the rich’

THE fallout from the budget continued last night with the Government being accused of robbing the poor to protect the rich and those who had caused Ireland’s problems with their reckless gambling with banks.

An assessment by a leading pressure group for the marginalised claimed the working poor and unemployed would be pushed further into poverty as a result of events in which they had no hand or part.

Social Justice Irelandargued that measures like welfare cuts, a drop in minimum pay and the new universal social charge would drive up emigration and would depress Ireland’s growth rate.

Organisation director Fr Sean Healy pointed out that a low income family with one earner on nearly €28,000 a year would face cuts of nearly €2,000.

Tax band changes and the universal social charge would cause the brunt of the income loss, he claimed.

Social Justice Ireland claims a smaller adjustment of up to €4.5 billion compared to the €6 billion delivered in cuts would have served the long-term interests of the economy.

Universal social charges will also hit earners with incomes of €4,004 upwards, claimed the group.

The Government could have tackled its deficit with other choices, said Fr Healy, including removing further tax breaks as highlighted by the Commission on Taxation, by introducing a ‘text tax’ and by levying corporate profits with a temporary 2.5% charge.

The group also highlighted a number of less well publicised cuts which, it said, were less visible in the budget, such as cuts to disability services (€1m),a reduction in funds forrural transport schemes, cuts to adult literacy funding and a drop in money for drugs initiatives.

“It will be almost impossible to survive in Ireland in 2011 on that income, let alone live with dignity.

“Ireland’s poorest have been condemned to penury by this Government’s choices,” said Social Justice Ireland in its assessment.

Despite claims by Finance Minister Brian Lenihan that welfare rates had shot up in recent years, the group pointed to the bulky pay packets which had been awarded to members of Government in recent years.

Those who had gambled their future on the banks would also escape the draconian budget, it was claimed.

Social Justice Ireland added: “The rich and powerful, including senior bond holders and thecorporate sector, will be the main beneficiaries in that they are not required either to pay for their misdeeds or to make a contribution towards Ireland’s rescue.”