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Budget 2012: The cuts (and petitions) outlined so far…

Image: Mark Stedman/Photocall Ireland

THE MINISTER for Finance Michael Noonan is due to announce a range of new economic measures to adjust public spending by €3.8bn through next year’s budget on 6 December.

Of that adjustment, some €1.6bn will be sourced through taxation, while the remaining €2.2bn of the adjustment figure will be found in spending cuts.

A number of lobby groups, trade unions and community organisations have already begun launching their budget submissions for the minister’s consideration ahead of the anticipated cuts.

Here’s a round-up of those petitions and of the cuts already expected in Budget 2012:

Cuts? What cuts?

  • Minister for Social Protection Joan Burton has played down reports from last week that her department’s budget would be cut by €700m. She said that discussions on the cuts were ongoing and nothing had been fully decided upon, but she was “very confident that we’re not talking about a figure like that”.
  • Meanwhile, the Sunday Times reports today that Minister Burton is considering lowering the age of children covered by One Parent Family payments from 14 years to seven, meaning that the payments would only cover the child until they were settled into primary school.
  • Postgraduate students could lose their grants and maintenance payments as of next year, according to a report in today’s Sunday Business Post. The Union of Students in Ireland has condemned the proposal, saying it would force thousands of postgrads to leave the country in search of study and employment opportunities abroad.
  • Minister for Research and Innovation Sean Sherlock confirmed recently that the Science Foundation Ireland budget would be cut from €160.8m to €156m. Sherlock said that allocations to promote research through Enterprise Ireland, the Tyndall National Institute and the Programme for Research in Third-Level Institutions would stay at 2011 levels through next year.
  • Noonan has indicated that tax revenue-raising measures other than changing income tax bands will be considered in Budget 2012, including increasing carbon tax and VAT, as well as property charges. Property owners will have to pay a €100 charge next year (as was announced in the summer) which will be used to fund local services.

Submissions

  • The Irish Penal Reform trust wants the government to allocate funding towards the construction of a new Cork prison, and says prison service costs could be cut by making better use of open prisons.
  • The Claiming Our Future umbrella group (which includes the ICTU, Social Justice Ireland and TASC) has called on the government to introduce a levy on property and assets worth over €1 million and to eliminate tax breaks for people on high incomes, while also introducing a higher tax rate for those earning above €100,000 per annum.
  • The Carers’ Association says it fears that social welfare payment cuts could see carers’ incomes cut by 40 per cent in Budget 2012 and is urging the government not to cut the half-rate allowance for carers.
  • The national housing charity Threshold wants the government to prioritise sustainable housing solutions in its allocation for tackling homelessness.
  • The Irish Small and Medium Enterprises Association (ISME) says in its pre-Budget submission that the government should include a subsidy scheme for employers to encourage them to take on unemployed people as additional staff, while reducing the top rate of employers’ PRSI to alleviate the costs of doing business.
  • Meanwhile, the Irish National Organisation of the Unemployed (INOU) called on the government to both maintain social welfare rates and provide further training and education options for the unemployed. The INOU also called for the tax base to be broadened by clamping down on tax breaks, but said that people earning less than the national minimum wage should be excluded from paying tax.
  • The UNITE trade union also called for changes to the tax base. It says that removing property-based tax reliefs could raise €450m, while reducing subsidies paid on high-income pensions could raise a further €200m. The union also says that extending the Universal Social Charge and PRSI to capital income would generate €290m.

Read: Noonan announces government’s four-year economic plan >

Read more: Children’s Hospital to go ahead but Metro North and DART underground shelved >

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Comments (55 Comments)

  • neuromancer 13/11/11 #
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    7 year cut to One Parent Payment. Bastards.

    Reply
    • James Ohare 13/11/11 #
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      Won’t this simply mean that those more devious serial single parents will conspire to become pregnant as their youngest cash cow approaches their seventh birthday?

    • Ryan Allen 13/11/11 #
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      If their children are in school, then surely they can able to have a part time job at least?

    • Paul Kealy 13/11/11 #
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      I wonder how many of those upset here were naive enough to vote for Fine Gael or Labour, believing their um ’5 Point Plan’. How many here voted ‘Yes For Lisbon, Yes For Jobs” With all due respect, what does a rant on TheJournal achieve? Sit back and enjoy the ride, you voted for it

    • Sophia Danylenko 20/11/11 #
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      There are Single parents and there are Lone parents, don’t tar everyone with your same narrow brush.

  • Dermot Hickey 13/11/11 #
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    Absolute scumbags.disgraceful if this happens!!

    Reply
    • Jim Brady 13/11/11 #
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      So explain where the money comes from please….

    • Taxing the people who can most afford to pay. Talking essential profitable companies into state ownership for the common good, creating a state owned and funded energy company encompassing oil and gas reserves (oil and gas on a very small scale at first but work at it like any other business and it could grow over the years). Encourage people to actively take part in their communities without fear of losing their social benefits(Would save on council spending)…basically look at society as a whole and focus on creating a just and fair society. Ridding it of greed and the sponges like those who pick up massive salaries and profits from other people’s work.. Not those who cannot find work and are unable to pay their bills and every now and time ‘sneak’ a little work in so that they might buy their child a pair of shoes or so they can affor to go to an interview for a job even !! Oh and if you think what I’ve said above cannot be done, think again. The Euro is dead…the punt never died it was culled…time to revive it and revive our domestic internal economy and give the creation of society the priority…and not give the creation of private wealth and greed the freedom to destroy it.

    • Réada Quinn 13/11/11 #
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      There’s an answer for you Jim. And that’s the kind of country I want to live in and bring my kids up in. Just beautiful. Comment of the week.

    • Sean O'Keeffe 13/11/11 #
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      Cutting spending rather than increasing tax will do less damage to the economy. Also, governments that follow this policy are more likely to be returned to office in subsequent elections.
      http://www.economist.com/node/17627068

    • Jim Brady 13/11/11 #
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      “talking profitable companies into state ownership”
      Priceless!
      “dear Google, would you like be state owned?”
      You think many industries/companies are going to stick around, or do you think Ireland is going to be an attractive place to do business once the state starts “talking” to business that way?
      Fact remains that as you raise taxes you stifle growth, and regardless of how you feel about, it that’s just the way it is.

      Look around you, smell the coffee, this has to get worse. If we don’t starting making deep cuts soon (that should have been made years ago), our grandchildren are going to speaking Cantonese, and labouring for 50c a week. The longer we leave it the worse it gets

    • Réada Quinn 14/11/11 #
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      @ Jim Brady.
      Read Ceiteach’s post again. Incorrectly quoting him with an omission is either careless or dishonest on your part.

      He didn’t advocate blanket raising of tax either. He said taxing those that can afford to pay.

      You look around you too Jim. Wouldn’t cooperation be better than every man for himself? It’s no more scarier than the way things seem to be going.

    • Sophia Danylenko 20/11/11 #
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      ..from the same coffers that pay single unemployed people.

    • Mike Hall 05/12/11 #
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      @ Ceiteach Mac Giollagain

      Yes, that’s the country I want to live in, good post!

      But note, the economic system itself is a key part of the system of inequality & at present inherently favours the financial oligarchy.

      It needs to be changed & it can be. A currency +issuing+ authority (of punt nua, say) has no need to borrow anything to spend for public purpose. There are constraints. It must balance spending – money creation – on the one hand, with taxation – money extinguishing – on the other, accordingly to regulate inflation. But the level of public ‘defecit’ itself can fluctuate without either repayment or interest requirement. Near full employment is possible with this system.

      An example of spending this way for public purpose, under recession, would be the provision of a (near minimum wage) job for every unemployed person desiring work. These workers’ spending creates demand for goods & services, thus ‘stimulating’ the private sector economy, which will then be able to offer (higher paying) jobs to those in the public ‘Job Guarantee’ scheme. Note that what Job Guarantee workers actually do is less important than their ability to earn & spend in the economy. They should obviously not replace other workers, rather perform work to the benefit of society & community that would otherwise not be funded. Economies are naturally cyclical. Such a scheme would greatly reduce the damaging effects of periods of private sector downturn & recession. No public/government debt or interest obligation need exist. (You can see why the banks & their economists don’t like this – debt & debt servitude is their core ‘business’.)

      These ideas & full explanation of the economics thinking behind them can be found at the blogs of Prof Bill Mitchell (& others). It should be noted that these economists correctly forecasted the financial crash some years in advance & had stated their sound methodolgy & understanding for doing so.

      Bill Mitchell’s blog is here:

      http://bilbo.economicoutlook.net/blog/

      These policies are entirely possible to implement & offer the appropriate economic system to underpin a vastly fairer & more stable society.

  • Gis Bayertz 13/11/11 #
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    They ARE scumbags and it WILL happen

    Reply
  • Tony Skillington 13/11/11 #
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    And to think…we have another 3 of these budgets to come…all to ensure others abroad are kept happy. Jesus..will somebody stand up and save us…..

    Reply
  • JeasusBigBalls 13/11/11 #
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    Government Dead right, Too many single mums claiming and living with partners at tax payers expense, Boo Hoo poor me no more free handouts, might have to look for work now like everyone else,

    Reply
    • Bernie Brennan 13/11/11 #
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      A lot of negative talk about single mums… every kid has a dad who is also responsible for the childs welfare.

    • Tracey Cantillon 14/11/11 #
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      JBB’ what the government need to do is put a system in place so dead beat dads can be found and made to accept their half of the responsibility. Penalising already disadvantaged children, because make no mistake it IS the kids who ultimately suffer, makes no sense and before you tar all single mothers with the same brush take a long look at the census figures on how many are actually working part time anyway because you cannot raise a family and pay bills on the government allowance!

  • Réada Quinn 13/11/11 #
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    I don’t mind fair reform and catching scammers of social welfare. But how long are labour going to keep backing up FG?

    Ruarai Quinn signing the 3rd level fee pledge a week or so before the election and then last week saying he didn’t know if he could stick to it!!! That said a lot.

    If Labour party don’t hurry up and remember their party’s ethos they’re going to be f*cked at next election. And then where’s our choice? FF or FG main party in gov again? Save us please…

    Reply
    • Ryan Allen 13/11/11 #
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      Labour are simply being pragmatic. I’m delighted that Joan Burton and Ruairi Quinn are in two of the biggest spending departments as they can’t be in the same level of denial and they can’t maintain the same level of crazy populism. We can no longer afford a high spending welfare state. Bertie, Charlie McCreevey and Brian Cowen gave away too much in their budgets so now some of that has to be taken away.

    • SMcB 13/11/11 #
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      Cutting all student grants for postgrad courses doesnt sit well with me. If my suitation presented ifself in 2012, there only would be 1 child going to college; me. Other familles wouldnt have that choice, not that it should be one in the first place. Its fine for someone in the cities, but this will kill rural areas and increase dependancy on the state.

  • Romain Petton 13/11/11 #
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    How about putting the Politicians on Minimum wage?

    Reply
    • Lorcan Nyhan 13/11/11 #
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      What a bright idea. Pay the people who have been voted in to sort out this country the same as the lowest paid. I’m sure that would attract the best and the brighest to the most important(and among the most difficult) positions in the state. The I.M.F would be out by the end of the week with you in charge I say.

    • Shane O'Connor 14/11/11 #
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      In fairness, paying top dollar has nt exactly attracted the brightest and most capable either…

    • Lorcan Nyhan 14/11/11 #
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      Fair point, but in my opinion that is because the irish people voted for populist polticians rather than those who could run the country most effectively. That is a diferent issue, my point is that it is illogical to think that cutting politicians wages will help the country in anyway

  • Patrick Denny 13/11/11 #
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    I would love to see the cost-benefit analysis on the bizarre decision of cutting postgrad grants and maintenance. Or at least an admission that there isn’t one. Do I need to make a FOI request to find out, or will the Minister, during our national Science Week, explain this?

    Reply
  • Lou Brennan 13/11/11 #
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    Can’t wait. One way ticket to Australia anyone?

    Reply
  • To the person that said a single parent could get a part time job?? Are you living in some parallel universe? And the Government could do plenty of reforming! Maybe they could ask the President what he thinks!? Now there’s some food for thought!! Cop on to yourselves…Education is the most important part of creating a decent society and an investment in all our futures both young and old. Part of creating a decent future also is the work of parents in the home and that includes single-parent families and their payments. I think it’s money well spent if it contributes to children being brought up rather than stumbling onto the streets!! Think about the bigger picture. We’re heading in an awful direction right now and people begrudging children a decent standard of living is counterproductive. Please open your eyes!! About the comment on ‘devious serial single parents conspiring to become pregnant as their youngest cash cow approaches their seventh birthday? This cash cow thing is also a fiction but needlessly massive families could be helped by child allowance being tapered off after 2 or three kids instead of it actually increasing the more children you have…as there should be some savings through hand me downs etc. with the more kids you have, people shouldn’t be encouraged to have more children than they can afford. Isn’t that the joy of having birth control….We have a socialist President now lets start thinking!! Society is about more than money and stuff!! Lets get out of the fascist Eurozone and create some sort of a ‘civilized’ society!

    Reply
    • jason bourne 14/11/11 #
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      It is not fiction… Young 17, 18 and 19 year old girls want kids to get a free house/apartment, single parent allowance and childrens allowance and then move their partner in. Its going on all over the place. Open your eyes. Yes, its a rather crude, simplistic and also general way of putting it but that is what’s happening. If anyone tries to deny that this is not what’s going on is ignorant or burying their heads in the sand.

  • Niall Connolly 13/11/11 #
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    Raise vat and drive people over the border…… Idiots

    Reply
  • Uncle Mort 13/11/11 #
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    What is this carbon tax all about?

    Reply
  • rsdowney 13/11/11 #
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    Unfortunately the money all of you are referring to is borrowed money. FF fooled us all into believing that throwing money at a problem will make the problem go away.
    It was such a simplistic answer and it relieved the rest of us from actually doing anything.
    Unemployment, lack of opportunity, disjointed health care, inadequate public services. Do not bother to make the hard decisions and change the broken system. Just throw money at it. Sadly, we now spend 18 billion a year of what we do not have.
    No one is entitled to state hand outs. We all need to readjust and recognise the new and painful reality.

    Reply
    • Paul Mallon 13/11/11 #
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      They didn’t fool everyone, plenty of people were screaming to stop the madness, and what did Bertie say? something along the lines of ” the economy is fine, anyone who says otherwise should go kill themselves”.

  • Paul Mallon 13/11/11 #
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    The Eurozone is only part of the problem, there’s a fundamental corruption in all things politic and business in Ireland. No point getting out of the Eurozone unless you fix that problem at the same time. If we default on the money we owe to the EU and loose any hope of external help, the politicians and banks will still manage to give themselves bonuses and pay rises, and why wouldn’t they, look what happened to the last lot that did that? – NOTHING, golden handshakes and pats on the back.
    Look at how many people are now unemployed, how many single parents will be affected by this, and how many people are there protesting outside the central bank – feck all!
    People need to stand up and be counted. The change needs to start with each citizen, or there won’t be any change.
    Things will just keep on keepin’ on. What does it take to get people motivated?

    Reply
    • Paul Mallon 13/11/11 #
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      @Ceiteach Mac Giollagáin
      The was supposed to be a reply to your comment.

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      Paul agree totally. Really we need a bunch of genuine people to look at the situation and actually change the whole system but how can this come about? How do you get people to care about each other and themselves after all the separation and division that has been manufactured through terrible government direction and the media influence. I started a college course in September and have found though the announcement of the protest called by the USI the amount of apathy and pure laziness even amongst the students, the absolute lack of empathy for their fellow students and people in general is amazing! Really the only answer is proper education, creating a more socially aware population. But how can you do that when the politicians hold that power?! I just don’t know? Are people not suffering enough already? The problem will get far worse though with more cuts to social funding and education. Someone above says further tax increases will damage the economy this is absolute rubbish if that money from tax was passed on to the people that have not it would actually increase spending in the domestic economy, creating demand and therefore the need for more jobs!! I didn’t even read the economist link and no doubt it says that increasing taxes make the sun the moon and the stars fall but get real we all have minds and do you really need a degree in economics to know that people who hold onto capital are of no use to the economy and most of their capital is gained by killing the general economy..have to go and cook some beans on toast here so I’ll leave it at that for now. We need a good domestic economy and build from that.

  • Eileen Gabbett 14/11/11 #
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    How to motivate people ? Well I think it is the little things, like getting out there and working with our neighbours . Nothing big ,even if it is just sweeping the pathways , picking up rubbish , bagging the over abundant fallen leaves . Looking out for each other and donating time and skills to our neighbours , a barter system in other words …. Am I being naieve.

    Reply
  • Romain Petton 14/11/11 #
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    @ Lorcan Nyhan
    You’re right, it wouldn’t attract anyone, no one would want the job. But for the Politicians who are already in office, might give them a better understanding as to the effect that the decisions they are making have on the tax payer. Might even get them to work harder and come up with better decisions.
    I understand that these cuts and stuff have to be made in order for us to get out of this mess, but are they not the ones who got us in this mess in the first place?

    Reply
    • Lorcan Nyhan 14/11/11 #
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      “it wouldn’t attract anyone, no one would want the job” that is sort of my point. I get that it would give certain people satisfaction but we need perspective on this issue. The public voted in the government..the majority believes that they are the best people for the job and it is too early to judge their actions.

    • maura 14/11/11 #
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      How about we revisit the Croke Park Agreement. Cut former T.D’s and ministers pensions. But then again turkeys do not vote for Christmas

    • Lorcan Nyhan 14/11/11 #
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      I agree with both those points.

  • Byron Smith 14/11/11 #
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    Jesus this country is in bits, ill pay more tax if I get a nama flat as collateral if the government doesn’t actually make life better for people in the long run

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  • Bigbirtha 14/11/11 #
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    Come on guys, ye are fooling yourselves. The central bank runs this country and the politicians are well paid actors. Gombeens get sucked in and vote either which way when the situation changes for the worse. Little do they know though, is that all political parties are one side of the same coin. Fake opposition ready to jump in and act in their obama-esk roles, but we then find out they are the same as before. We spend the next 4 years impotently complaining until another great hope will save us. And the cycle starts over again. RTE goes along with this and the biggest laugh of it all is the tax payer funds the very organisation that keeps them ignorant. We are, always have been and always will be gimps, because we’re either too stupid or too scared to do anything about it. The country is getting stripped right in front our our eyes.

    Reply

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