Republican News · Thursday 9 April 1998

[An Phoblacht]

Extra tax revenue not available to tackle poverty

 
When the national income is redistributed much more in favour of people living in poverty, then the Celtic Tiger can be said to be truly looking after its cubs

In the same week that Dublin Government Exchequer figures showed a £500 million increase in tax revenue, Combat Poverty's acting Director Helen Johnston called for ``a stronger commitment to anti-poverty action''.

Johnston said, ``When the national income is redistributed much more in favour of people living in poverty, then the Celtic Tiger can be said to be truly looking after its cubs''.

Writing in Combat Poverty's quarterly journal, Johnston says ``the country's economic situation has never been better. We can now make serious inroads to reduce poverty''. She calls for concrete and progressive targets in the five priority areas of the anti-poverty strategy including income adequacy, educational disadvantage, long term unemployment as well as urban and rural poverty.

However, none of the increase of £500 million in tax revenue can be used this year to eliminate poverty. Instead it will be used to reduce the state's debt burden or left in Government accounts for unforeseen contingencies.

Combat Poverty have said that they were disappointed with Charlie McCreevy's 1998 budget. It seems that their hopes for the next year will be disappointed. This government is not committed to using the benefits of the Tiger economy to effectively tackle poverty. Combat Poverty have to resign themselves to the fact that this government is not prepared to redistribute income or the benefits of economic growth.


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