Republican News · Thursday 5 December 2002

Ó Caoláin attacks "government betrayal"

"With anger and shock," was how Caoimhghín Ó Caoláin said people across the 26 Counties would react to Charlie McCreevy's sixth budget as Finance Minister. "This Budget represents one of the greatest frauds and swindles ever perpetrated against an Irish electorate," he said.

The difficulties we face today he said are the "result of mismanagement and the squandering of the unique opportunities of the past five years", said the Sinn Féin TD. "Minister McCreevy looked after the wealthy in all his Budgets and he has done it again. Those on lower income have been left behind once more."

Ó Caoláin accused Fianna Fáil of reneging on pre-election commitments and promises in relation to health. "Before the General Election Fianna Fáil made two promises - to end hospital waiting lists in two years and to extend the Medical Card to a further 200,000 people - both were dumped as soon as the polls were closed."

The Cavan/Monaghan TD said that the health services need "resources and reform" and pointed out that "this Budget does not even keep the health services in line with medical inflation, thereby negating any positive elements of the National Health Strategy.

"It is a shame and a disgrace that in 2002, after the most prosperous period in the history of Ireland, it is still wealth that determines the standard of health and the standard of access to health services for our people."

Ó Caoláin contrasted the government's attitude towards those on low incomes against its pandering to the corporate sector. "While breaking its promise to parents who find themselves just over the income limit for the medical card and who must struggle to scrape together the money to bring their children to the doctor, the government has kept its promise to the big corporations, the multinationals and the financial institutions. In this Budget they are getting their promised cut in Corporation Tax from 16% to 12.5% - a massive reduction," he said.

On general taxation he said: "The minister has only tinkered with tax reform in this Budget. The wealthy still have their loopholes." He added that McCreevy had only made adjustments in tax reliefs because they had become an embarrassment to him.

"The government has failed to take the lower paid out of the tax net as promised. People on minimum wage are still taxed. Income tax changes in this Budget have again benefited the better off disproportionately."

Sneaky VAT clawback

He said the Minister's sweeping VAT changes to raise extra revenue will have a massive knock-on affect on those on lower incomes and will undermine the meagre social welfare increases announced. "How is anyone expected to live with dignity on €124 per week?" he demanded. "It is the low paid and those on social welfare who most feel the effect of real cost of living increases such as increase in public transport fares and local authority charges and the forthcoming TV licence fees."

He described as a "fraud" the government's announcement of increases in mortgage interest relief while at the same time increasing the VAT on new homes, saying "it is giving with one hand and taking away with the other".

On the government's own Social Housing Programme, Ó Caoláin said: "This Budget will do nothing to address the ongoing housing crisis. The estimates cut the Local Authority and Social Housing Programme by over €57 million. This Budget will make the situation even worse in the coming year."

On Education, he said the Budget compounded the government's "betrayal of children attempting to learn in sub-standard and often dilapidated and rat-infested schools".

Ó Caoláin finished with a call for change: "We have been living through a time when the effort and talent of Irish people turned around the economy, dramatically reduced unemployment and emigration and improved living standards. This coincided with the peace process and renewed hope for our future on this island. But the efforts and the talents of ordinary people who made progress possible, have not been matched by this government in its management of the economy.

"It is time to build a real alternative."