‘Government had decisions to make but made the wrong ones’

DECIDING whether or not to support this budget was not easy for me.

But in the end I had no alternative but to vote against the budget as presented over the last two days.

My involvement in politics was born out of a wish to assist in building a better, fairer Ireland. After careful consideration of the measures contained in Budget 2012, I believe they run counter to my core principles and those of Labour.

Budget 2012 is both unjust and economically unsound. People on low and average incomes are being hit hard, while those most able to assist in economic recovery have been largely unaffected. The measures fail to address the need for investment in job creation and will continue the downward spiral in our economy.

This Government was elected with a mandate for change and a mandate to take the hard decisions necessary not only to regain our economic sovereignty but also repair our damaged society. Reducing the fuel allowance of the elderly, punishing lone parents, pushing the disabled into poverty and removing vital community employment schemes will do nothing to assist these aims.

The Government had decisions to make and then made the wrong decisions. Most importantly they shirked away from taking the necessary tough decision to increase taxation on high-income groups.

Without the involvement of the Labour Party in this government, the budget may have been much worse.

Social welfare rates across the board may have been cut, college fees might have been reintroduced in full. However, ultimately I had to ask myself whether or not, on balance, I believed that these measures will aid our economic recovery; increase employment prospects and share the burden of our economic situation fairly.

In my view Budget 2012 unfortunately fails on all these counts.

I believe that the Labour party must make minimal demands to protect jobs, the most vulnerable and to ensure that the failed politics of austerity are ended.

After this budget a low-income family with let’s say four young children will be hit very heavily.

The cut in child benefit for the third and fourth child will take money directly out of the family budget. The VAT increase will mean that their reduced income won’t go as far in the shops. The cuts in back-to-school allowance will further hit them. The household charge of €100 will hammer them further.

We need a genuine debate about austerity, the path to recovery and how to build a radically more equal society. I could not support this budget and hope to represent this alternative with credibility.

I intend to work inside Leinster House and outside it to represent an alternative based on ending austerity.

Labour ministers have been subject to criticism over the measures announced by Brendan Howlin yesterday.

THE tragedy of this budget is that if these unfair and unjust measures were going to help our economic recovery, then there might be some economic rationale for considering their merit. Unfortunately austerity measures which hit people on low incomes slow down economic recovery. This is because low-income households spend their money in the local economy. This budget will mean that the cash registers in shops will be even quieter and may mean that retail outlets which are on the brink will close, adding to our unemployment crisis.

The biggest issue in Ireland now is stemming the flow of emigration and creating a future in Ireland for all who want one. But the budget will have further negative effects on jobs. Capital spending cuts will on average, according to the Department of Finance, cut 7,500 direct jobs from the economy next year. On top of this there will be a further reduction of public sector employment by 6,000.

I put forward a number of constructive proposals in advance of the budget that outlined how the Government could increase revenues to narrow the budget deficit as required and boost growth. I am not prepared to support measures which damage our recovery while attacking the weak, the sick, the marginalised and the vulnerable.

I remain 100% committed to the values and principles of the Labour Party. My objections are based on policy, not personality. I have no doubt that Labour Ministers did what they could to protect their individual budgets. But the logic of the budget is wrong. Taking €3.8bn out of the economy while failing to invest a similar amount for growth will not lead to recovery.

While the progressive tax measures that were introduced are welcome, they simply do not go far enough. Changes in the universal social charge are a step in the right direction; many of those who will benefit from the measure will end up net losers from the Budget, when the household charge or cuts in welfare payments are factored in.

The determinism that has gripped Irish political life must now end. We need a genuine debate about austerity, the path to recovery and how to build a radically more equal society. I could not support this Budget and hope to represent this alternative with credibility.

There is more than one way to organise a society and an economy. I intend to work inside Leinster House and outside it to represent an alternative based on ending austerity.