Spending cuts counter-productive - SIPTU

SIPTU has called the spending cutbacks in the Book of Estimates counter-productive and has accused the Minister for Finance of…

SIPTU has called the spending cutbacks in the Book of Estimates counter-productive and has accused the Minister for Finance of mishandling the situation.

"Unfortunately, McCreevy overspent during the good times and is now making the same error during bad times, by under-spending in the areas of greatest need," SIPTU General President Mr Des Geraghty said.

"Ordinary workers will bear the brunt of this cavalier approach. For commuters, gridlock in our major urban centres will be exacerbated by cuts . . . [and] conditions for employees and clients of the health services have also been worsened by the cuts.

"But most astonishingly of all, the Government has completely ignored the economic realities facing young families by scrapping the first-time buyers' grant without warning," Mr Geraghty said.

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Fine Gael's leader in the Seanad, Mr Brian Hayes, said that decision also dramatically affects the operation of the shared-ownership loan.

"The shared ownership scheme provides a real housing option for people on very modest incomes. The first-time buyers' grant of €3,700 was an essential part of the financial package behind shared ownership.

"Its abolition will make the shared ownership scheme virtually inoperable.

Labour's spokesman on Community, Rural and Gaeltacht Affairs, Mr Brian O'Shea, said the cuts are "cruel" to rural Ireland.

"The provision for Rural Affairs is reduced by 26 per cent, amounting to a reduction of €13,409,000 . . . [and] speaks volumes in regard to this government's lack of commitment to rural Ireland," he said.

Patrick  Logue

Patrick Logue

Patrick Logue is Digital Editor of The Irish Times