Preparing for a fair budget

MICHEÁL Ó MUIRGHEASÁIN,

Croydon Green, Dublin 3.

Far from being unscathed by austerity measures, older people have been affected by: the loss of the Christmas bonus, implementation of universal social charge, prescription charges, electricity levy, introduction of household charge, reduction in fuel allowance from 32 to 26 weeks, increased tax on home heating fuel, reduction in medical card cover for aural and dental benefits, increases in VAT and Dirt (tax on savings), cuts in frontline health and social care services and rising costs of medical insurance, and they will be affected by planned water and property tax charges. The latest and most indefensible cut is the €9 million cut to home help and home care services which effectively targets people, mainly older, experiencing chronic and life-limiting illnesses, disability and frailty.

Older people are a diverse group. Forty-five per cent of older people have an income in the bottom 40 cent of incomes. Less than 5 per cent of older people are on incomes in the top income decile (above €39,000 per annum). Ninety-one per cent of older people are at risk of poverty before they receive social transfers, eg State pension and household benefits package. The State contributory pension is set at a maximum of just over €230 per week, but almost half of those who receive this pension do so at a reduced rate. Furthermore, the qualifying criteria for a full State contributory pension have become more stringent since the last budget.

In the upcoming budget, we need to begin at the top by targeting those in the top income deciles for increased levels of tax rather than further eroding the incomes of those on lower and middle incomes, whatever their age. – Yours, etc,

Sir, – A recent telecommunications industry report shows that there are five million registered mobile phones in Ireland. I propose that the Government levy €0.03 (3 cent) on each text message sent from Irish-registered phones.

This would help to alleviate some of the misery about to be inflicted on us next week. The network providers would, no doubt, be able to provide the figures required (or be compelled to) and deduct the levy on behalf of the exchequer. Every bit helps! – Yours, etc,

Sir, – I would ask the Government not to add insult to injury after this year’s budget by coming out with its standard spin comments. Especially galling is: we haven’t shied away from taking the tough decisions (one of Eamon Gilmore’s favourites).

Should I pay my rent/mortgage or spend what little I have on food, heating? Should I take my child to the doctor/hospital or take a gamble that it’s only a bug and will pass? These are just a couple of examples of genuine tough decisions made by thousands of Irish people daily. I wonder when, if ever, Messrs Kenny, Gilmore or any of our TDs have had to take such decisions.

As for their catch phrase, we are all in this together, all in the same boat: we, the crew, who find our pay, rations and living conditions systematically worsened year on year, are increasingly questioning how, the captain, his officers and their advisers can still have huge salaries, plenty of rations and large cabins. “Mutiny on the Austerity” may not be far away if this trend continues. – Yours, etc,

Sir, – The budget made simple: We spend 47 per cent of Government revenue on social welfare, 35 per cent on the pay of public servants and 53 per cent on other expenditure, such as the care of old people in their homes, debt interest and support for investment. That adds up to 135 per cent of total revenue. The 35 per cent overrun is what we need to borrow every year to spend what we spend. To balance the budget would require a 35 per cent rise in total tax revenue or the equivalent in expenditure cuts. – Yours, etc,

Sir, – Brendan Howlin may not often look to Winston Churchill for inspiration but I sincerely hope Michael Noonan recalls his dire warning on the politics of austerity, as they cobble together their grand strategy for economic recovery: “A nation trying to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle”. – Yours, etc,