‘Blood on the walls’ if benefits are cut

OUTRAGED Labour TDs have pledged “blood on the walls” if the Coalition Government tries to push through cuts in child benefit and welfare rates.

Anger in the party grew yesterday after Social Protection Minister Joan Burton refused to rule out the cut and the Coalition leadership indicated budget cuts to some key payments.

One Labour TD suggested that “there will be murder if that’s the approach — bedlam”, while another predicted “blood on the walls”.

Suggestions by Taoiseach Enda Kenny and Tánaiste Eamon Gilmore that talk of a €10 cut in child benefit was “speculation” did little to allay growing dissent among many Labour backbench TDs yesterday.

The pair’s attempt to dampen the growing anger was not helped by both men’s recent dismissal of claims of a 2% hike in VAT in similar terms after advance notice of the rise was relayed to German MPs — just hours before Finance Minister Michael Noonan confirmed it.

Government sources have, however, moved quickly to dismiss reports that dole payments are facing cuts of €8 per week in next month’s budget.

But motor tax and changes to capital gains and inheritance tax are likely to feature in a budget that is designed to secure a €3.8 billion adjustment in government spending.

Some Labour TDs have expressed their deep annoyance at having talk of the child benefit cut “bounced” on them and have suggested the leaks could be part of a softening-up exercise to try to make the December 6 budget seem less severe than feared.

Of the Labour TDs who were prepared to go on the record yesterday, Galway East TD Colm Keaveney strongly criticised the pre-budget leaks on child benefit.

“This is unnecessary and if it’s kite-flying it is playing foolish games with the electorate,” he said

“There must be very short memories — this is a critical payment for keeping people’s heads above water. This is going to cause a lot of upset to people,” Mr Keaveney added.

The Labour victor in the recent Dublin West by-election, Patrick Nulty, also delivered a warning to the party leadership.

“I don’t think anyone voted Labour to see child benefit cut and it’s not something I support,” he said.

Cork TD Ciarán Lynch also expressed concern over cutting child benefit. “Speculative talk is not helpful, but people do know this is going to be a tough budget,” he said.

Party colleague and Cork South-West TD Michael McCarthy said he believed cuts to child support should not be considered.

“My instinct tells me hands off child benefit,” he said.

Fianna Fáil seized on growing Labour party dissent and highlighted the pledge Mr Gilmore made just days before the February general election, when he promised that if in power, his party would prevent Fine Gael from cutting child benefit.

Meanwhile, Mr Kenny said the key thrust of the forthcoming budget would be to protect and create jobs.

“If we don’t make the cuts that have been agreed on — that’s to get down €3.8bn this year — then the only alternative is to increase taxes and increasing taxes affects jobs directly,” Mr Kenny said.

The Cabinet will meet today and throughout the week to discuss the December 6 budget.

The Labour parliamentary party is set to meet tomorrow in what is expected to be a showdown gathering for the party.