Gilmore to propose aid for parents hit by ‘relentless’ austerity

Special measures to help parents with young children could be in prospect by next year as Tánaiste Eamon Gilmore pushes in pre-budget talks to give "breathing room" to families.

In a speech tonight in Cork, Mr Gilmore will say future budgets should include steps to give families a break from the “relentless grind” of having nothing left over after paying their monthly bills.

While mapping a key battle line in the October budget, Mr Gilmore will also say that a return to full employment by 2020 should replace the troika’s target for a 3 per cent budget deficit after it is achieved in 2015.

With a €3.1 billion package of cutbacks and tax hikes still looming in budget 2014, any drive to specifically target employment would require a clear change of emphasis in later budgets.

The Tánaiste's call for measures to relieve the strain on families will be made to a summer school in memory of former Labour leader Tom Johnson.

It reflects the expectation that there will be scope in October to funnel money back into the economy because the Government is on track to beat fiscal targets set by the troika.

Although there is already talk in the Government of a special investment programme for the construction sector, Mr Gilmore's speech marks a claim for parallel measures for families. In defiance of demands within Fine Gael for tax cuts, going ahead with these two initiatives would preclude any scope for such cuts.

“We cannot put the recovery at risk by going backwards, but as a result of what we have achieved, we can now think about bringing an end to austerity, which has always been our goal,” Mr Gilmore will say.

"The past five years have been difficult for families in Ireland. Difficult for a whole generation in negative equity, stuck paying boom-time mortgages with recession incomes.

“People have put up with a lot. They have shouldered a lot. And it allowed our country to pull back from catastrophe. So when it comes to looking at future budgets, we need to look at how we can give them some breathing room.

“A break from the relentless grind of paying off the bills every month, only to have little or nothing left over. There is no silver bullet to end hardship, but I believe we must do what we can to make it easier.”

Mr Gilmore will indicate there should be no swerve away from the 2015 deficit-cutting deadline.