Budget 2016: The reaction
The main points of Budget 2016 have been announced. On this page, we present an overview of reaction from the political parties, personalities and various lobby groups.
Sinn Féin Senator Trevor Ó Clochartaigh has hit out at the "Government’s failure to invest in Gaeltacht and rural areas" under Budget 2016.
The Senator said: "The record of this Government in respect of rural Ireland has been disgraceful and I am hugely disappointed that Budget 2016 has not included one measure to address the challenges faced by rural communities across the state.
"Despite the fact that the rate of poverty among rural dwellers has increased significantly under the watch of the current Government and the west of Ireland has continued to suffer neglect and lack of investment, this Government chose to ignore the needs of rural Ireland in today’s Budget."
He went on to say that Budget 2016 "demonstrates the Government’s lack of vision for a Fair Recovery that spreads further than the large urban centres".
He said: "It is an insult to Rural Ireland.
"Sinn Féin set out a wide range of measures that would have had a real impact on rural communities - an additional 500 places on the Rural Social Scheme, the restoration of Farm Assist, the provision of 1,000 Garda training places and a Telephone allowance of €9.50 per month to allow elderly people living on their own to access panic alarms.
"Our ambitious Capital Programme would also have seen an additional €100 million for the investment in critical infrastructure projects such as roads and infrastructure, which would have ensured that rural Ireland would have been more attractive to investors and businesses.
"We proposed a range of measures to support the Irish Language and the development of Gaeltacht areas including additional funding to the Údaras na Gaeltachta Capital Fund Grant and Irish language Community schemes.
"This Government did not take even one measure on board and instead has copper fastened the neglect of rural Ireland in today’s Budget."
*******
The Irish Nurses and Midwives Organisation believes the increase in the Health budget is not enough “to resolve the current inadequate capacity of our health service”.
“The INMO recognises that the government still faces financial challenges as the economic recovery continues,” said INMO General Secretary, Liam Doran.
“However, the health allocation, for 2016, needed to be significantly greater if we are to address the current severe challenges facing our health system. In particular, it does not seem to provide for additional frontline staff needed to provide quality assured care.
“The INMO had hoped that the government would bring forward a three-year funding plan, for the health service, which would have seen a minimum of 10%, of GDP, allocated, on a sustained basis, to this critically important public service.
“Today’s allocation is also silent on how we will recruit frontline professionals, particularly nurses and midwives, for our health service. It is very disappointing that the budget allocation does not seem to contain the necessary earmarked funding to restore the 4,500, nursing/midwifery posts lost since 2008.”
*******
Trade union Siptu said the budget contained positive measures that will see workers make the first real financial gains from a budget in almost eight years.
“The fact remains that the more you earn, the more you will gain,” the union’s researcher Ger Gibbons said.
On the flip side, the Small Firms Association, chambers groups and Isme, the small business group, said the extra money in people’s pockets will encourage spending and also help to ease wage demands from staff.
*******
*******
The main opposition parties have claimed the pre-election Budget is “the final roll of the dice” from a “delusional Government taking the short cut to popularity with a plan Charlie McCreevy would be proud of”.
Fianna Fáil and Sinn Féin heavily criticised Fine Gael and Labour's €1.5bn tax cuts and benefit hikes giveaway and alleged well-paid families will receive “10 times the gain” of the low-paid.
Responding in the Dáil, Fianna Fáil finance spokesperson Michael McGrath said despite the fanfare of a Budget that appears to offer something for everyone and the "general air of self-congratulation" there is nothing in this Budget that will address key inequalities in Irish society.
He said the Government's housing announcements “are nothing short of pathetic" as they do not include long-hinted rent certainty, rent supplement or tax relief changes, but noted it is "amazing you could still agree with giving yourselves a €900 tax cut".
Sinn Féin finance spokesperson Pearse Doherty was equally damning, saying the Budget was "the epitome of boom-bust" politics.
Mr Doherty said the latter group were the "real" squeezed middle as "50% of workers earn below" the figure, but that they had been ignored to such an extent that inequality was now Mr Kenny's "badge of honour".
The Sinn Féin TD said the Coalition had "truly stolen Fianna Fáil's clothes" by "stuffing €181.9m into the pockets of the top 14%" due to USC changes, while throwing "a few crumbs from the table to everybody else", asking if high earners had been out demonstrating on the street or banging on ministers' doors to receive the raises.
*******
The Society of St Vincent de Paul has said while they welcome they Budget 2016, they feel they are “gaps” in it.
“SVP is pleased at the investment announced in reducing USC for low paid workers, increasing the statutory minimum wage, increasing the fuel allowance, the increase in FIS income threshold and the earnings disregard for lone parents on jobseekers transitional payment,” said the society in a statement.
“On the other hand SVP says that the current limits placed by the Department of Social Protection on the private rents that can be paid by tenants in receipt of Rent Supplement/Housing Assistance Payment is causing homelessness and is not allowing families to escape homelessness. SVP is anxious to see DSP increase the RS/HAP limits to meet market rents.
“SVP is also disappointed that there was no mention of Rent Certainty in the private rented sector, despite the Minister’s insistence that we will not be going back to boom and bust. A functioning private rented sector needs certainty for tenants, landlords and also to attract investors.”
*******
IDA Ireland has hailed the announcement of an OECD-compliant Knowledge Development Box (KBD) for Ireland in today’s Budget.
Martin Shanahan, CEO at IDA Ireland said: “A strong vibrant enterprise sector, including a large foreign direct investment segment, is vital to our continued economic well-being.”
“This KDB will see a lower tax rate applied to profits from intellectual property that is generated as a result of research and development undertaken in Ireland.”
“The rate of 6.25% that was announced is competitive – I believe it will help in attracting new R&D to Ireland.”
“In addition to IDA Ireland’s direct R&D support, the KDB adds a further dimension to our best in class corporation tax offering, which includes the 12.5% headline rate, the R&D tax credit and the intangible asset regime.”
“As we speak, large companies are making plans for where they will locate key parts of their business in a “post-BEPS” world – it is vital that we keep Ireland at the front of their mind. Investors continue to choose Ireland - and the IDA's pipeline remains strong.”
*******
The Unite trade union has said Budget 2016 will “entrench inequality” because they say it has failed “ailing to address the structural deficits left behind by austerity.”
Unite Ireland secretary Jimmy Kelly has accused the Government of “blowing the recovery”.
“Today, the Government continued to turn a blind eye to the glaring structural deficits left by austerity”, said Kelly.
“With growth rates due to weaken over the next two years, and the risk of considerable uncertainty in the European and international economy, the Government should have substantially increased investment in our infrastructure, productivity and education. Instead, it is recklessly cutting taxes. This is boom-and-bust economics.
“A Budget which cuts inheritance taxes while failing to restore the real value of Social Protection payments will only further entrench inequality.
“Half of all workers earn less than €29,000. They will see few benefits from the USC cuts – and the few Euro extra they do get will be swallowed up by inflation and by increased charges for services which, in other European countries, form part of the ‘social wage’.
“This is not only an Election Budget – it is clearly a Fine Gael Election Budget from which any Labour fingerprints have been carefully wiped.”
*******
The Peter McVerry Trust has delivered a mixed reaction to Budget 2016 in the area of homelessness.
“The €17m for homeless accommodation is welcomed and could help provide additional emergency capacity,” said CEO Pat Doyle.
“However, this amount measured against the growing nature of the emergency we face suggests that the Government, and in particular senior Government Ministers, have failed to grasp the challenge that exists in tackling homelessness.
“That or they have simply ignored the issue. Increasing spending in emergency accommodation will not solve homelessness, investment in housing and areas such as drug treatment, mental health and children and youth affairs are the solutions to this emergency.
“It is also very disappointed that nothing additional is being proposed in the areas of mental health services and drug treatment supports.”
*******
Sinn Féin has criticised Budget 2016 in the areas of education and housing.
Sinn Féin Spokesperson on education Deputy Jonathan O’Brien described measures announced for the primary and post-primary school going population as the “minimum required”.
The only positive is the decrease to the pupil teacher ratio €18million for the extra teachers required. There is only €24m in new spend to meet additional students attending school. School capitation grants haven't been increased so that they can meet their basic running costs,” said Deputy O’Brien.
“This means they will be forced to beg for funding from the Minor Works fund. It looks like the Department is robbing Peter to pay Paul. “Most of this budget is dressing up the minimum they actually need to do as new to make it sound like a new initiative and it falls far short of the mark.”
Meanwhile, the party’s Seanad finance spokesperson Senator Kathryn Reilly has said “this is no government for young people”.
“In today’s budget, the government were happy dress up perceived giveaways for certain demographics. However, they made sure that young people did not benefit from the so-called recovery.
“It is clear that in the eyes of this government that certain sections of society are more equal than others. At its best, this budget shows the apathy this government has towards you young people; at its worst, it highlights their disdain.
“This government has consistently target young people because they are a voting bloc that they know that have depleted in number, demoralised in spirit, and made cynical about politics,” said Senator Reilly.
Sinn Féin also believes the Government has failed to tackle the housing crisis.
“This is a particularly poor effort from the government when you take the time to look beyond the spin. The reality is that while the government claim to be investing large sums in housing, they are only approaching a return to the funding we saw before they took office; a time when there was already a housing crisis in effect,” said Sinn Féin housing spokesperson Dessie Ellis.
“An affordable housing pilot scheme is welcome, but we need more details. This money was promised in the last Budget but never materialised. We hope this is not repeated.
“We also want to see more details on the proposals by NAMA to provide 20,000 houses for commercial sale or rent. Given the fact that NAMA struggled for nearly 4 years to provide just less than 1400 units for social leasing, I want to know why these properties are not being prioritised for use for social housing.”
*******
The Construction Industry Federation has said they are “broadly supportive” of Budget 2016.
“There are a number of positive initiatives announced by the Government, including the extension to the Home Renovation Grant, the increased provision for social housing, and measures to assist self-employed, said CIF director general Tom Parlon.
“However, while we welcome the provisions that NAMA can provide 20,000 houses between now and 2020, this will only deliver to 4,000 units per annum, which equates to only 25% of broadly acknowledged annual national demand.
“There are no proposals to address the issue of costs of providing new homes, the availability of affordable development finance, or the availability of mortgages. We are concerned that this may be a lost opportunity to support the construction of much needed additional homes to meet sustainable demand.”
*******
The Irish Film Board has hailed the Budget 2016 decision of the Government to increase the Section 481 film tax credit cap to €70m.
“Minister for Finance Michael Noonan’s announcement in his Budget 2016 speech about the latest improvement to Section 481 film tax credit has been welcomed by Bord Scannán na hÉireann/ the Irish Film Board,” read a statement from the board.
“The improvement underlines the continuing support of the Irish government for Irish feature film, television drama and the television animation industry in Ireland and will assist in attracting foreign direct investment in screen content production, generating growth, jobs and exports in the sector.”
*******
The National Association of Principals and Deputy Principals has welcomed the announcement by the Government of plans for an additional 2,220 new teachers as part of the Education Budget 2016.
“The demographic pressures and increase in numbers of pupils at second-level makes this announcement critical to the successful functioning of our schools around the country,” said president of the NAPD Mary Nihill.
However, while the increase in teacher numbers and the overall budget allocated to education of over €8bn is welcome, schools will still face huge resource issues. The restoration of middle management and posts of responsibility in secondary schools still needs to be addressed after major reductions during the economic downturn.”
*******
The AA has complained that there is “nothing for motorists” in Budget 2016. It comes after there were no changes to fuel taxes or the cost of motor insurance in Budget 2016.
“A litre of petrol actually costs 44 cents,” said AA director of consumer affairs, Conor Faughnan. “Everything else - over 92 cent in the litre – is tax.”
“It is in effect an anti-stimulus measure that takes disposable income out of families' pockets and adds to the cost of doing business. The emergency is over, so is the time for emergency taxes.”
*******
The Irish Hotels Federation has reacted positively to the retention of 9% tourism vat rate, saying that keeping the rate is of “enormous importance” to the hotel industry.
“By any measure, the 9% VAT rate is one of the most successful job creation initiatives in modern times. By bringing our tourism VAT in line with our European competitors, it has contributed to increased tourism demand and significant growth,” said Tim Fenn, chief executive of the IHF.
“Combined with increased air access and the reduction of the air travel tax to zero, the 9% VAT rate will continue to deliver enormous dividends to the exchequer.”
*******
The Vintners’ Federation of Ireland has also welcomed Budget 2016, practically the decision “to narrow the gap in tax credits between the self-employed and PAYE workers”.
“The phasing in of the PAYE tax credit for publicans and other small businesses is clear recognition of the contribution these businesses make to the Irish economy,” said chief executive of the VFI Padraig Cribben in a statement today.
“For years, the VFI has been calling for more equality for the self-employed as for too long they have been left out in the cold. We believe that publicans and other small business owners are at a significant disadvantage compared to other sectors when it comes to state supports.”
However, the VFI were “disappointed” with the lack of a move to reduce excise duty.
“We view this as a missed opportunity by the Government as Ireland still has excise levels that are a multiple of most other European countries.”
*******
The Irish Heart Foundation has criticised the lack of an introduction of a tax on sugar sweetened drinks, saying the Government is “prioritising the wealth of multinational companies over the nation’s health and particularly the health of children”.
“We know 60% of the Irish public back the tax. The Government’s own research also shows that a tax would significantly reduce the number of obese people in Ireland,” said Irish Heart Foundation head of advocacy Chris Macey.
“This impact could be further magnified by spending the multi-million tax revenue on measures such as fruit and vegetable subsidies, removing junk food from schools and expanding community food initiatives. They have the evidence, they have the public support and still they refuse to take decisive action to tackle the obesity problem.”" No No Budget 2016, reaction, political parties, personalities, lobby groups. What did everybody think of Budget 2016? No No
The Construction Industry Federation has said they are “broadly supportive” of Budget 2016.
“There are a number of positive initiatives announced by the Government, including the extension to the Home Renovation Grant, the increased provision for social housing, and measures to assist self-employed, said CIF director general Tom Parlon.
“However, while we welcome the provisions that NAMA can provide 20,000 houses between now and 2020, this will only deliver to 4,000 units per annum, which equates to only 25% of broadly acknowledged annual national demand.
“There are no proposals to address the issue of costs of providing new homes, the availability of affordable development finance, or the availability of mortgages. We are concerned that this may be a lost opportunity to support the construction of much needed additional homes to meet sustainable demand.”
*******
The Irish Film Board has hailed the Budget 2016 decision of the Government to increase the Section 481 film tax credit cap to €70m.
“Minister for Finance Michael Noonan’s announcement in his Budget 2016 speech about the latest improvement to Section 481 film tax credit has been welcomed by Bord Scannán na hÉireann/ the Irish Film Board,” read a statement from the board.
“The improvement underlines the continuing support of the Irish government for Irish feature film, television drama and the television animation industry in Ireland and will assist in attracting foreign direct investment in screen content production, generating growth, jobs and exports in the sector.”
*******
The National Association of Principals and Deputy Principals has welcomed the announcement by the Government of plans for an additional 2,220 new teachers as part of the Education Budget 2016.
“The demographic pressures and increase in numbers of pupils at second-level makes this announcement critical to the successful functioning of our schools around the country,” said president of the NAPD Mary Nihill.
However, while the increase in teacher numbers and the overall budget allocated to education of over €8bn is welcome, schools will still face huge resource issues. The restoration of middle management and posts of responsibility in secondary schools still needs to be addressed after major reductions during the economic downturn.”
*******
The AA has complained that there is “nothing for motorists” in Budget 2016. It comes after there were no changes to fuel taxes or the cost of motor insurance in Budget 2016.
“A litre of petrol actually costs 44 cents,” said AA director of consumer affairs, Conor Faughnan. “Everything else - over 92 cent in the litre – is tax.”
“It is in effect an anti-stimulus measure that takes disposable income out of families' pockets and adds to the cost of doing business. The emergency is over, so is the time for emergency taxes.”
*******
The Irish Hotels Federation has reacted positively to the retention of 9% tourism vat rate, saying that keeping the rate is of “enormous importance” to the hotel industry.
“By any measure, the 9% VAT rate is one of the most successful job creation initiatives in modern times. By bringing our tourism VAT in line with our European competitors, it has contributed to increased tourism demand and significant growth,” said Tim Fenn, chief executive of the IHF.
“Combined with increased air access and the reduction of the air travel tax to zero, the 9% VAT rate will continue to deliver enormous dividends to the exchequer.”
*******
The Vintners’ Federation of Ireland has also welcomed Budget 2016, practically the decision “to narrow the gap in tax credits between the self-employed and PAYE workers”.
“The phasing in of the PAYE tax credit for publicans and other small businesses is clear recognition of the contribution these businesses make to the Irish economy,” said chief executive of the VFI Padraig Cribben in a statement today.
“For years, the VFI has been calling for more equality for the self-employed as for too long they have been left out in the cold. We believe that publicans and other small business owners are at a significant disadvantage compared to other sectors when it comes to state supports.”
However, the VFI were “disappointed” with the lack of a move to reduce excise duty.
“We view this as a missed opportunity by the Government as Ireland still has excise levels that are a multiple of most other European countries.”
*******
The Irish Heart Foundation has criticised the lack of an introduction of a tax on sugar sweetened drinks, saying the Government is “prioritising the wealth of multinational companies over the nation’s health and particularly the health of children”.
“We know 60% of the Irish public back the tax. The Government’s own research also shows that a tax would significantly reduce the number of obese people in Ireland,” said Irish Heart Foundation head of advocacy Chris Macey.
“This impact could be further magnified by spending the multi-million tax revenue on measures such as fruit and vegetable subsidies, removing junk food from schools and expanding community food initiatives. They have the evidence, they have the public support and still they refuse to take decisive action to tackle the obesity problem.”
CONNECT WITH US TODAY
Be the first to know the latest news and updates
