Don’t panic about tax plans, says Minister Hanafin

The public should not panic about the proposals in the Commission for Taxation report or the McCarthy report, Minister for Social Welfare Mary Hanafin said in Cork yesterday.

Minister Hanafin, speaking after she addressed a conference in UCC, said that something like a “poverty risk assessment” would be carried out on all budget proposals by the Cabinet, so that it is looked at as an overall package.

She also said all 15 Ministers would have to consult widely with each other during the drafting of the Budget, so that the cumulative impact of any changes on ordinary families could be assessed.

“It’s a matter of saying: ‘You can’t do that if you’re going to do that’. That’s why we need to know as a group what everyone else is doing,” she said.

“We need to be able to see not just what would be the impact of one element on a family, but what would be the impact of taking them all,” she added.

Stressing that both the McCarthy report and this week’s Taxation Commission report are only recommendations, Minister Hanafin said fairness would have to be the Government’s priority.

“Some people are taking it as gospel, that this is all going to happen. Whereas no decisions are going to be finalised until Budget time.

“So people shouldn’t panic about it all. We will look to see what is the most balanced, fair way of doing it,” she said.

Minister Hanafin said that looking after those on social welfare and on low incomes would have to be a priority for the Government.

“The second priority has to be looking to see the impact of other cuts other Departments are going to have in families, and to see how we can mitigate any of the cumulative effect of changes on people,” she said.

“That really is important as well, that the Government is working as a unit, and not just individual Ministers going off and coming up with packages, because you don’t want any one group or sector being caught with a heavier burden than others, unless they’re the very, very high earners,” she said.

Minister Hanafin said no decision had yet been made about child benefit — but said that changes were on the way.

“It’s a balancing act to be fair about it, but there will be changes in the child benefit in some form or other. Because it’s not a social welfare payment that people are dependent on, and the Government cannot keep spending €21bn on social welfare, particularly with the amount of money that’s coming in,” she said.

Minister Hanafin said she agreed with Taoiseach Brian Cowen’s statement that the next 100 days would be the most difficult to date for the Government — but said that she believed that the coalition Government would not fall.

“If we get through the 100 days, and I believe we will, then we’ll last our full term, we’ll last to 2012,” she said.

Article courtesy of The Evening Echo newspaper.