Budget gets mixed reaction from Cori

The Budget represents a "historic breakthrough" in social welfare funding, but cutting the top rate of tax was "not the fairest option" the Cori (Commission of Religious in Ireland) justice commission has said.

The main element of Cori's pre-Budget wishlist was granted with the raising of the lowest social welfare payment by €20 a week to €185.80 in 2007 or 30 per cent of gross average industrial earnings.

Cori's justice spokesman, Fr Seán Healy, commended the Government on honouring its commitments under the National Anti-Poverty Strategy.

"This increase marks a fundamental turning point in Irish public policy," he said, adding that he expected the Government to maintain payment levels "through the sustained benchmarking of social welfare rates of 30 per cent of gross average industrial earnings". The main downside was the reduction in the top rate of tax, by 1 per cent to 41 per cent.

This, Fr Healy said, was "not the fairest or best option" because it would only benefit workers earning more than €43,000 a year. "For the same cost to the exchequer every person could have been given a tax credit of €90. This would have been a much fairer use of the available money."

The Budget made "significant progress in addressing social exclusion" experienced by older people, people with disabilities and children, he said.

The increase in the allocation of care services for the elderly was "very welcome" as was the increase in the State pension. Funding of an additional 2,000 home-care packages was "very substantial", he said.

While the Budget included a number of initiatives to address child poverty, Fr Healy said Cori would continue to push the Government to introduce a refundable tax credit available for all children irrespective of whether their parents were working.

He described the allocation for social housing of an extra 27,000 homes between 2007 and 2009 as "very significant". "An additional 73,000 social housing units will be required if the social housing shortage is to be addressed by 2013. This allocation is a significant contribution to tackling this problem."