McCreevy urged not to repeat mistakes of the past

13 Oct 2000

Embargo 12 noon, Friday 13th October

Minister McCreevy's Budget must deliver a real increase in social welfare rates, or he will simply repeat the mistakes of the past, according to Tony Monks of the INOU. Speaking at the launch of their demands for Budget 2001 today (13/10/00), Mr. Monks said " Last years Budget was a slap in the face to unemployed people, giving them a mere £4 increase, compared with £40 a week to top income earners. Minister McCreevy increased the poverty gap in a time of prosperity, the Government cannot afford to repeat the same mistake again."

Camille Loftus, Welfare Rights Spokesperson said the INOU proposals focus on providing a real increase for people looking for work, and providing people with real opportunities to get work. " The PPF commits that ' all rates of social welfare will be increased in real terms'. The Taoiseach, Tánaiste and Minister for Finance have all acknowledged that people on fixed incomes have been the worst hit by inflation. Budget 2001 must deliver the promises of Partnership, by implementing an economic policy that is fair to all."

Ms. Loftus outlined the key INOU demands:

- Raise social welfare rates to meet the commitments in PPF. A raise of £14 would guarantee a real increase in the value of social welfare rates; to guarantee that their real value is maintained into 2002, the increase must be no less than £10
- Pay all Budget 2001 weekly increases from January 2001, to compensate for the deprivation suffered as a result of inflation
- Take minimum wage workers out of the tax net by increasing the personal tax allowance to £6,000, and the PAYE allowance to £3,000
- Deliver a package of child income supports, including a £10 increase in Child Benefit and raise all Child Dependent Allowances (CDA's) to £17.00
- Introduce a Parental Childcare Payment, so that all parents are supported in their childcare costs
- Introduce a local authority scheme to help all low-income tenants in the private rented sector
- Comprehensively poverty -proof the Budget, and publish the results on Budget day.

"The last Budget posed a serious threat to Social Partnership. Unless this Budget delivers the commitments made in the PPF, the very concept of Social Partnership will be undermined." said Ms. Loftus.

ENDS

Further information
Camille Loftus, Welfare Rights Spokesperson
01 491 0525 / 01 856 0088
Noeleen Hartigan, Press Officer 
087 616 7689 / 01 856 0088