BUDGET 2016: Trade unions give measures mixed reviews

Trade unions gave Budget 2016 a mixed review. 

Siptu researcher Ger Gibbons said some budget measures would mean that workers would finally get some financial return after years of struggle, and he also commended the restoration of 75% of the Christmas bonus for social welfare recipients.

However, he also said the budget was a “missed opportunity” and claimed that the ratio of spending to taxation was imbalanced.

“The union has argued over recent months that the resources that become available as the economy recovers should be allocated over the medium term in a 2:1 ratio, with two-parts going towards rebuilding public services, and one-part towards tax reform, targeting low-to middle-income earners,” he said.

“Thereafter, the focus should exclusively be on providing the public services that Ireland now needs. The Government’s decision to opt for a 50:50 split leaves insufficient resources, despite the many increases announced today, to start repairing the damage of recent years particularly in public health and housing.”

He said Siptu was disappointed that the Government did not move to replace the universal social charge (USC) with a social solidarity contribution and accompanying tax credit of €775.

“While income earners will gain from the changes to the USC announced by the Government today, the fact remains that the more you earn [up to a limit of €70,000], the more you will gain from these changes,” he said.

However, Unite said some budget measures would entrench inequality, with Unite Ireland secretary, Jimmy Kelly, accusing the Government of “blowing the recovery”. He said the USC cuts would disproportionately benefit the top 20% of earners.

“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,” he said.

“Instead, it is recklessly cutting taxes. This is boom-and-bust economics.”

The Irish Congress of Trade Unions welcomed some measures, including the rise in the minimum wage, which general secretary, Patricia King, said should be a first step towards establishing a living wage.