Severe budget cuts will not be reversed
A number of Labour TDs are seeking meetings with senior ministers from their party to express concerns over a €10 cut to child benefit and the 20% cut in the respite care allowance.
However, senior sources in the party said they did not expect any particular sticking point to emerge that would lead to the loss of any of its TDs over the €3.5bn austerity budget.
They said Social Protection Minister Joan Burton reduced the planned cuts in her department from €500m to €390m, so there was little scope for U-turns.
It was also felt child benefit cuts — accounting for €136m in savings — form too much of the budgetary arithmetic to reverse.
Taoiseach Enda Kenny said the budget “was and will be the toughest of the administration’s lifetime” and “none of the choices were easy and all of them were unpalatable”.
However, he insisted: “The budget has gone through. It is the intention of the Government to carry through the budget.”
The Dáil has already voted on financial resolutions giving effect to budget measures but the bill containing social welfare cuts will be put to the Houses of the Oireachtas next week.
The Labour Party chairman and Galway East TD, Colm Keaveney, tweeted that Wednesday’s vote was only on “elements I can live with” and that “next week is a different story”.
His party colleagues privately described him as “the grand old duke of York” for seeking public attention while voting for the budget on Wednesday night.
Senior Labour sources echoed the sentiments of Transport Minister Leo Varadkar, who said the budget was not an “à la carte menu”. “We were elected to form a national government and work together to come up with a compromise, and that is the budget and both parties will stick by it now.”
As carers prepare for a major protest today, Government backbenchers were last night uneasy about the cut in the respite care allowance from €1,700 a year to €1,375.
Communications Minister Pat Rabbitte defended the cut, telling the Dáil it was “modest” and that Labour had ensured worse welfare cuts did not materialise.
Meanwhile, US secretary of state Hillary Clinton used a visit to Dublin to praise Irish people for their “resilience, hard work and determination” which helped “rebound” the economy.
“The United States is confident in our economic partnership with Ireland. Our foreign direct investment here already tops €191bn, which is more than US companies have invested in Brazil, Russia, India and China combined,” she said following a meeting with the Taoiseach in Government Buildings.
“We want to continue to see our economic relationship grow,” she said.