Budget 2006: Another Missed Opportunity? - Seamus Ryan

Is Budget 2006 to go down as another missed opportunity? With reports of the government having 2.7 billion more than expected at its disposal, there is a unique opportunity for the Minister for Finance Brian Cowen to make a real difference to the quality of life of those on the margins in Irish society. The expected budget surplus of 4.4 billion is an opportunity to invest in public services such as health and education. Or will the Minister bow to the pressure of his Progressive Democrat colleagues and put the focus on rewarding the high earners with a tax cut for the top earners?

It was interesting to read this week that according to the latest Irish Times/MRBI poll, the overwhelming majority of voters want the Minister to invest in public services such as education and health ahead of tax cuts for the high earners. This is hardly surprising when people are having to put up with overcrowded classrooms, when patients are waiting on trolleys in our hospitals or spending up to three or four hours a day waiting in gridlock. In fact, in the Irish Times Poll, reducing the top rate of tax ranked last amongst voters priorities.

Surely that is a clear message for the Finance Minister Brian McCowen.

There is a strong argument to be made for this years budget to target the middle and lower income families. Labour Party Finance spokesperson Joan Burton spoke this week of the need for the budget to provide a substantial increase in the standard rate band and in the personal credit. Joan argues that this is “the fairest way of improving living standards.” With a growing number of working poor there needs to be a focus on those in the middle or lower income bracket.

As part of the annual Budget process we have also seen groups such as the Carers Association, CORI, St. Vincent de Paul and Combat Poverty make their annual pre-Budget submissions to the Minister for Finance. Each year these groups, amongst others, set out their priorities to government, but surely this year with a budget surplus of 4.4 billion, Cowen has an opportunity to meet some of their needs.

One of these groups, the Carers Association, represents the needs of the nations Carers. As part of its pre-Budget submission to the Minister for Finance this year, the Carers Association are seeking:

• Medical cards for full time Carers;
• To allow Carers to work twenty hours per week and be eligible for the Carers Allowance;
• To increase the rate of Carers Allowance to 250 per week;
• To increase the Respite Grant to 2,880.

Surely with a budget surplus of 4.4million, Minister Cowen could make a significant difference to the quality of the lives of our Carers by introducing the above measures. But this is the where we will see where this governments priorities lie. Will Minister Cowen decide to help our Carers or will he will decide to assist those on high incomes by introducing a further tax cut for these high earners?