CORI reaction: Father Seán Healy, who had addressed the Fianna Fáil parliamentary party at Inchydoney on the need for greater social inclusion, yesterday gave a rare welcome to the Government's Budget.
"This is the 19th Budget we have produced an analysis and critique on. In all previous budgets there are many things which we have welcomed, but this is the first time we have put the word 'welcome' in the headline of our analysis," said Father Healy of the CORI Justice Commission.
In a detailed analysis of the spending plans, Father Healy said his organisation's call for a €14 weekly increase in unemployment benefit had been met, but added that rates would need to rise by €17 next year and €20 in 2007 in order to meet official anti-poverty targets.
He also welcomed the decision to remove workers on the minimum wage from the tax net, which would have an important impact on the numbers of "working poor". Official figures suggest a quarter of all households in poverty are headed by an employed person.
Mr Cowen's decision to increase tax credits was also welcomed. However, Father Healy said a person who did not earn enough to use up a tax credit may not benefit from any tax reduction.
"In effect, this means that those with the lowest pay will not benefit from Budget changes. A solution exists: make tax credits refundable. We hope that over the next two budgets the Government will move to introduce this reform," said the CORI post-Budget analysis document.
He also said the gap between rich and poor had widened again following this year's Budget. It measured this gap by calculating income increases for a single person on long-term unemployment and a single person on €50,000.
The gap would widen by €30.93 a week under the 2005 Budget, or €310.93 a week (€16,224) since 1997.
"Some commentators try to justify the distribution of these increases, claiming that the percentage increases in particular years were lower for the better off. We reject that analysis. Percentages do not buy bread or milk. Cash does. We are simply pointing out the obvious," Father Healy said.
He also welcomed the €900 million funding package for the disability sector between 2006 and 2009.
He said CORI had argued in the past for targeted policies to assist householders headed by people who are disabled or ill, who account for almost 12 per cent of those living in relative income poverty.
"This new funding package will facilitate a more co-ordinated and planned response to these needs.
"It also needs to be recognised that, while expenditures on disabilities, present and planned, are big improvements on past performance, a great deal more needs to be done if people with disabilities are to enjoy fairness in Irish society," he said.
He also said the Government should deliver on its promise of spending 0.7 per cent of GNP on Overseas Development Aid.
