Cowen’s budget gets mixed reaction from lobby groups

Commentators are continuing to assess the ramifications of the budget unveiled by the Minister for Finance Brian Cowen yesterday.

The most talked about aspect is the reform of stamp duty aimed at propping up the ailing house market.

The move has been welcomed by auctioneers and builders, but opposition politicians say it is too late to stimulate growth in the market.

Builders have also welcomed an increase in mortgage interest relief, saying it should help revive the market.

Motoring groups have welcomed reforms of VRT and motor tax, which will now be linked to CO2 emissions rather than engine size.

The AA and business groups have also welcomed the infrastructure funding announced by Mr Cowen.

Anti-poverty groups, meanwhile, say the budget did not go far enough to help the most vulnerable people in Irish society.

St Vincent de Paul says it is particularly disappointed by the modest increases in social welfare payments and is also accusing the minister of failing to reduce stealth taxes that disproportionately affect low-income families.

Age Action Ireland also says the slight increase in pension payments will not make any real difference to older people.

In the area of education, teaching organisations say Mr Cowen has not provided enough money for the Government to meet its commitment on reducing class sizes.

The Irish Nurses Organisation and Fine Gael, meanwhile, have slammed the increase in accident and emergency charges at Irish hospitals.

Elsewhere, Mr Cowen's changes to tax bands and tax credits are expected to benefit all workers to some extent.

The employers' body IBEC says it believes the changes will help the next round of pay negotiations due to take place under the social partnership process next year.

The price of cigarettes has already gone up by 30 cents as a result of Mr Cowen's budget and the minister also signalled his intention to introduce separate taxes for low and high-percentage alcoholic drinks.