LAST UPDATE | 26 Sep 2024

SINN FÉIN HAS promised that its alternative budget would benefit ordinary working people in Ireland by more than €1,000 if it were in Government.

Revealing its version of the upcoming budget today in Dublin, the party rejected a claim by the finance minister Jack Chambers that the Government’s Budget, to be announced next week, will bring the same gains of €1,000.

Sinn Féin’s finance spokesman Pearse Doherty claimed that the Minister’s remarks were “false” and added that the Government’s planned tax cuts target those on the median income, meaning almost half of workers will miss out on savings.

In its alternative budget today, Sinn Féin pledged a two-tier abolishment of the Universal Social Charge, beginning with workers earning €30,000 or less and later scrapping it for workers earning less than €45,000.

Key to the party’s budget ideas was the €10 per day for childcare idea, which it says will be met with increased capital finding for providers and double child benefit payments in October and December.

The party said its budget was aiming to make Ireland a “better place” for families.

The abolition of the local property tax, stopping increases to the carbon tax and reverse the latest rise in excise duty are all included in the party’s alternative budget, which Doherty said it would be proposing if it were in Government.

Additionally, Sinn Féin are proposing a levy on private jets, which it says will to raise €18 million.

Speaking to reporters, Sinn Féin leader Mary Lou McDonald said that the party’s aims of a “fair and balanced” tax system that “puts money back in workers pockets”.

“In our alternative budget we choose to invest in meeting the challenges of today and to plan for a better future,” McDonald said.

Doherty criticised the Government’s spending of public funds and pointed to what he called “runaway projects” such as the National Children’s Hospital.

He further criticised the Government for not detailing the expected surplus to the opposition or the public for this year’s budget or using the surplus to a greater extent – but added that Sinn Féin would not be looking to quickly spend those funds either.

“There will be billions of a surplus next year and what we have look at is what is possible in terms of the budget required to support workers and families, the level of investment that we need in terms of the economy and the capacity for the economy to absorb that level of investment,” Doherty said.

The Donegal TD defended the measures in the current plan and made the point that Sinn Féin were thinking ahead in terms of the surplus, claiming that this budget was the first part of a five-year plan. 

SF’s budget will exceed €1,000 in benefits

Doherty also claimed that Chambers’ remarks that the average worker will be €1,000 better off were “false” and reasoned that his party’s budget will do more to bring those funds to workers.

He said that Sinn Féin’s plans to abolish USC for workers earning €30,000 or less in the first year will mean those workers will have €605 more in their pocket next year, compared to the previous year.

He added that the energy and support packages for households will benefit families by giving €400 energy credits, which then “already exceeds €1,000″. 

“What Jack Chambers doesn’t tell you is that when he says that the average worker, he actually doesn’t really mean the average worker,” he said.

He added: “We know that the median income in this state is €43,000, so what does that mean? It means half of all workers actually earn less than that, so what Fine Gael delivered for half of the country’s workers last year was a tax package that benefited them by less than €400.”

Sinn Féin launch its alternative budget, aiming to make Ireland a “better place” for families. @thejournal_ie pic.twitter.com/UP4Bf2NiM0

— Muiris Ó Cearbhaill (@muirisoc) September 26, 2024

Housing and capital spending

Doherty promised €4 billion of capital investment, much of which would be allocated to housing.  The party would build 21,500 social and affordable homes in 2025, the document says.

It would also remove stamp duty for first-time buyers.

Doherty said a Sinn Féin government would not have “runaway projects”, such as the National Children’s Hospital, which has attracted controversy due to delays and its approved budget being extended to €2.2 billion.

Cost of living

The party’s budget includes a cost of living package worth €2.3 billion.

It would introduce a €1.10 increase in the rate of minimum wage, mortgage interest relief payments, a ban on rent increases for three years, and a month’s worth of rent back to renters at a cost of €1.5 million.

There would be a €20 increase for core disability social welfare, a €12 increase for carers, and a new pay-related carer’s benefit under Sinn Féin’s Alternative Budget.

The abolition of the TV licence, €450 electricity credits, reduced VAT rate for household energy, a €300 fuel allowance, €500 disability and carers lump sum payments, €200 living alone payments and a double social welfare and pension payment at Christmas were also included.

Asked how it intends to finance the reoccurring payments, Doherty claimed that it can be done so through the pending billions of euro in the Budget’s surplus.

“The government are going to cut taxes to the tune of €1.4 billion euro. Do the Government need to find new taxes to fund that package? No, they don’t, and neither do we,” he said.

He added that because Sinn Féin have proposed a staggered abolition of the USC, if it were to be in Government it would be able to afford such measures with the billions expected to be included in the surplus public accounts.

Doherty reasoned that the cost of a total abolition would be too high, which is why Sinn Féin have chosen to take the approach it has done and later decide how best to use the additional public funds.

Childcare

As well as reducing direct childcare costs – a major issue for families around the country – Sinn Féin would increase child benefit payments by €10 and provide an additional four weeks of parental leave.

It says it would expand the free school books scheme to secondary schools, cut third level student fees by €1,500, and abolish apprenticeship fees, as well as building more student accommodation.

Irish unification

The party also announced that it would allocated €3 million to running a citizen’s assembly on constitutional change before holding a referendum on Irish unity.

Additionally, it would spend €8 million on conducting “Irish unity research”.