Afternoon Blog - 07 December 2010
Criticism, analysis, response: The BudgetJam live blog. Email your comments here or comment below.
18.16 From The Poor Can't Pay campaign
The Poor Can’t Pay Coalition says that the Children of the poorest are hit hardest in budget
A coalition of trade unions, charities and community has said that the country’s poorest families will receive no additional support from Government despite substantial cuts to the minimum wage, social welfare payments and child benefit in today’s Budget.
Speaking on behalf of The Poor Can’t Pay - groups Mike Allen said:
‘The country’s poorest families have been dealt a massive blow today with cuts to the minimum wage, social welfare payments and child benefit.”
‘However, unlike last year’s Budget the Government has not made any attempt to mitigate this impact of these cuts through targeted payments to those living in or at risk of poverty.”
‘In 2009 Brian Lenihan cut Child Benefit but crucially increased the Qualified Child Allowance for families on low incomes. This year, however, the poorest families will have to bear the full brunt of these savage cuts without any help. For example a couple living in emergency accommodation with two children and receiving supplementary welfare allowance will see their weekly income drop by €22 per week to €440.40.”
‘Meanwhile a couple on jobseekers allowance with three children living in social housing with three children will see their income drop by €20.80 per week to €514.12. In a particularly cruel measure the Minister decided to cut the ‘safety net’ payment of Supplementary Welfare Allowance by an extra €2 per week – resulting a a €10 a week cut for those on the payment specifically designed for the most vulnerable people in the Country. It is notable that the Minister was too ashamed to mention either the hit on poor children or the cuts to SWA in his budget speech.”
‘When one considers that a household living on a quarter of a million euro a year will only suffer a loss of €75 per week as a result of today’s budget it is clear that the Governments claim to have distributed the burden of the cuts fairly is complete nonsense.
Even after the cut of €14,000 in the Toaiseach’s salary he will continue to receive 13 times the income of a man who has lost his job as the result of Government policies.”
‘Once again the poor are being made to pay for the bad decisions of Government. This will lead to more poverty and inequality in Irish society, with devastating consequences for the people involved and increased social and economic costs for all in the long run.’
The Poor Can't Pay is a civil society coalition that believes those earning the minimum wage or living on social welfare should not be forced to pay the cost of our present economic crisis.
Members of the Poor Can’t Pay include: Age Action, Barnardos, EAPN Ireland, Focus Ireland, Irish National Organisation of the Unemployed, Mandate, the National Women’s Council of Ireland, SIPTU, Saint Vincent de Paul and Social Justice Ireland.
More information at www.thepoorcantpay.ie
18.09 From European Anti-Poverty Agency
Government needs to publish detailed report on poverty impact of Budget 2011
Tuesday , 7th December: The Government needs to publish a detailed report on the poverty impact of Budget 2011 which it is committed to carry out in its own National Action Plan for Social Inclusion. This is the same Plan which commits to eradicating consistent poverty by 2016 but the measures released this afternoon by the Government will go a long way towards driving more people deeper into poverty.
Paul Ginnell, Policy and Support Worker with EAPN Ireland, stated that 'while we know that the measures announced today will substantially increase poverty in the country we are demanding that the Government produce a detailed poverty impact assessment to explain the real impact of the decisions the Minister for Finance announced today. All they have published so far is a brief statement justifying what they had already decided to do'.
Budget 2011 includes increased tax on those on lower incomes, a reduction of €10 per week in all welfare payments apart from the state pension and a reduction of Child benefits by €10 per month with an additional cut of €10 for a third child. Also signalled is the €1 reduction in the minimum wage. All of these measures, alongside cuts to essential services have a direct impact on the most vulnerable which the Government has stated it is committed to protecting.
Statistics released last week by the Central Statistics Office ( CSO) for 2009 show that levels of consistent poverty rose from 4.2% in 2008 to 5.5% while the numbers unable to afford basic requirements went up by 25%. This is even before the impact of cuts in Budget 2010 are taken into account. In addition to this CSO data shows that according to the Consumer Price Indexprices have risen by 2% in 2010. In light of these statistics the Government’s Budget will result in even greater poverty for people.
Mr Ginnell concluded that 'as we come to the end of the 2010 European Year Against Poverty and Social Exclusion we must question the type of society that we are to become where even more people are being forced to live on the very margins of society. Alternatives proposed by organisations such as the Community Platform, TASC ,Claiming our Future and UNITE have been ignored'.
18.01 From Focus Ireland - Homeless Charity
Savage Budget Cuts Will Lead to Increase in Homelessness and Force Thousands to Remain in Emergency Accommodation
Focus Ireland has warned today that the savage cuts made in Budget 2011 will force more people to become homeless and will also act to keep many of the 5,000 people who are currently homeless trapped living in limbo in long-term homelessness.
Today’s budget slashed a massive 36% cut in the social housing budget and a substantial 6% cut in funding for HSE regions.
This means €300million less for social housing provision in 2011 at a time when social housing waiting lists are increasingly dramatically and €400million less for HSE bodies that fund, among other services, those for people who are homeless.
The charity said that sweeping cuts across welfare payments and funding for services & housing will increase the hardship of many thousands of the most vulnerable families and single people in society.
Focus Ireland CEO Joyce Loughnan said: “Today’s budget will penalise people who are homeless in three separate ways. They will have their already meagre incomes cut forcing them further into poverty. The providers of homeless services will see a reduction in their funding at a time when demand for those services is on the increase.”
“And the massive 36% cut in the social housing budget will condemn those trapped in emergency accommodation to long-term homelessness with little hope of moving on to a home. “
She added: ‘Taken together these cuts will cause a severe deepening of the homeless problem across the country and puts in doubt the future viability of the Governments own homeless strategy. The Government and opposition parties must realise this road makes no sense as these funding cuts - and the continued lack of provision of housing - will mean that people who are ready to move on from being homeless will be forced to remain in expensive emergency accommodation.”
“This will keep many families and single people trapped in homelessness and it will actually cost the State more to keep them in this emergency accommodation on a long-term basis than it would to provide homes and support to move on to independent living.”
“The Government has failed to achieve its agreed target of ending long-term homeless and the need to sleep rough by the end of this year and I regret to say that this Budget will act to undo much of the good work achieved in recent years in tackling these issues.”
Focus Ireland also warned that homeless services will not be able to cope with the increased demand for support as more new people become homeless and less of those who are currently homeless will be able to move on to a home. ENDS
15.53 Time flies etc, and while ye are involved in the serious business of protesting, I'll be joining the panel with Scott Williams on the Q102 drivetime show in Dublin from after 5pm to discuss the Budget and its implications. Because of the various protests there may unfortunately be a bit of a hiatus here on the liveblog while the proposed Budget unfolds.
15.44 It was a rollicking good teach-in at DIT Aungier Street, where I (Harry Browne) was joined by political scientist Tom O'Connor and a great group of questioning students. We've also heard so far about sessions in UCD and St Pat's Drumcondra. Knowing those folks in Maynooth they're doubtless still talking. Here's the press release, since you're unlikely to read it elsewhere:
Lecturers and students at several third-level colleges staged Budget Day “teach-ins” at campus bank branches in protest at the banks’ role in the economic crisis.
Protesters gave short lectures and answered questions about the relationship between banks’ reckless lending during the Celtic Tiger years and the latest Budget austerity measures -- including the increase in fees for third-level students.
The actions took place simultaneously at 3pm at on-campus banks across Dublin and Leinster, including University College Dublin, Dublin City University, NUI Maynooth, Dublin Institute of Technology, Dun Laoghaire Institute of Art, Design and Technology and St Patrick’s College, Drumcondra.
“These 'teach ins' are intended both to highlight the role of the banks in creating the crisis and to attest that another version of the university is possible,” Colin Coulter,sociology lecturer at NUI Maynooth, said. “We bailed out the banks. We own them. Now let's use them for something worthwhile for a change.”
The event was organised by the recently formed “All in This Together?” network, a group of activists and academics who have also been running a web forum at www.politico.ie/budgetjam -- where photos and video of the teach-ins were posted.
“As the most vicious budget in the history of the State was about to be unveiled, we transformed the banks on campus from places of corruption into places of learning,” Coulter said.
15.28 Well that was fun. As we wait for the teach-in results to driibble in from the various constituencies, and at the risk of succombing to the charms of the most media-savvy bookie ever, here's a few Paddy Power specials: 500/1 on 'it was just a bad dream' looks pretty tasty...
14.55 Of course at Budgetjam we believe all forms of protest are created equal, but some are more equal than others. So I must inform you that in five minutes several of us will be doing 'teach-ins' at campus banks to highlight the role of the banks in the current crisis. Watch this space.
14.28 Lest the last item be interpreted as a form of self-praise, please note that Ailbhe Smyth was commenting on the Morning Blog -- when Therese and Miriam were running the show.
14.15 The 'Latest Comments' is some distance down this page, but some comments are so good they're worth dragging up here. The excellent Ailbhe Smyth writes: "Great blog - really woke me up! Am very glad to see someone writing about impacts of the crisis on WOMEN. The vast majority of debate and comment to date has been framed as if we live in an ungendered world, which is anything bu the case. Women will suffer atrociously in this budget , and especially those who are most vulnerable (ie ignored, excluded, stigmatised, exploited): older women, single women, lone parents, women who have migrated here with their families. Public service cuts affect women very severely, both in seeking to access services for their children and other dependents, AND as public service employees. Gender makes a massive difference to women - and none to men. Together, gender, social class, ethnicity, disability can be a very toxic mix indeed for women."
14.01 I love Richie O'Donnell's new film about Corrib, The Pipe -- go see it! -- but its great quality is that it is relentlessly local. Check out this fantastic short film that fills in some of the gaps: it's relentlessly global.
13.55 And God bless poor Jackie Healy-Rae, who explained last February why he is powerless to achieve anything for the Irish people. Apart from, ya know, the odd bypass, the occasional hospital.
"We were in a different position a few years ago when there was six or seven independents controlled the government. There is only myself there now and to a lesser degree Michael Lowry who is not able to attend for various reasons and it is only myself that’s there with the odd day that Michael Lowry will come up.” Fierce busy fella, that Lowry.
13.42 Thanks to Eoin for this lunchtime treat: a bite-sized 2006 interview with Sean Fitzpatrick. If you're on a diet, here's the 'money' quote:
Do you have any regrets?: "Millions in every part of my life, but that doesn't mean I'm unhappy."
Come on, Seanie -- only millions? We know you can think bigger than that...
13.30 Reports now that Brian Lenihan will retain the car-scrappage scheme for at least six months. In how many ways is that a regressive measure? Well, it subsidises those who can afford new cars. It incentives massive wastage of resources and energy in getting rid of vehicles that are in working order and replacing them with new ones -- keeping in mind that a huge portion of the energy budget for any car is in its manufacture. It supports an industry that is of minimal value to the economy, with no manufacturing element in Ireland.
A triple threat!
Does RTE Radio raise these questions? Is that a Merc ad I hear during the News at One?
13.26 By popular demand, a repost for this, 'Christmas in a Crisis'.
13.22 On the day that's in it, the poor hard-pressed bosses at Ryanair are always sure to get a hearing on RTE Radio 1.
13.18 Good to hear that Shell 2 Sea is a visible presence outside Leinster House, given the instant budget-balancer at our disposal by way of proper ownership of the country's natural resources.
12.28 So, to the business at hand. A government that enjoys the support of a maximum of 20 per cent of the electorate -- plus the casino-entrepreneurs of Tipperary -- pushing through a Budget that is in aid of a bailout for European bankers that is surely even less popular than that.
You couldn't make it up. But the reality is grimmer still, because despite the overwhelming popular consensus, the consensus of the political elite goes well beyond the FF-Green coalition -- indeed love for the basic principles of this Budget&Bailout is probably greater on the FG frontbench than on FF's bank-bench. Protest today, loudly, by all means, but then consider: What are the real political alternatives?
12.22 Harry here, by the way. High stress today, so bear with us...
12.15 Andy Storey’s article, posted this morning, deals as comprehensively as we could hope for with the arguments for and indeed against default. And it raises another question: why, when the likes of McWilliams and Gurdgiev have been calling for an Irish default, has the respectable Left largely steered clear of this option? Why, in other words, has FT columnist Wolfgang Munchau got a more ostensibly radical proposal for addressing our crisis than IT columnist Fintan O’Toole?
After all, recent history has shown that screwing the banks and ignoring the IMF actually works -- as long as we’re all in agreement that the relevant body of those likely to be affected by such a move is “the Irish people”. Is some of our Left too wedded to Euro-institutions to consider the (at least temporary) break that default would entail?
What do you reckon?