Government is 'failing to invest in future of country'

Political reaction: The Labour Party leader, Mr Pat Rabbitte, has condemned the Government for cutting services that affect …

Political reaction: The Labour Party leader, Mr Pat Rabbitte, has condemned the Government for cutting services that affect only the most vulnerable while failing to invest in the future of the economy or the country.

In a statement yesterday Mr Rabbitte said the political choices underpinning the Estimates reflected a political philosophy which was damaging to the community.

There were cuts in the resources given to the probation and welfare service at a time of great anxiety about crime.

Dietary supplements, rent supplements for people who were virtually homeless and community employment were cut, he said. So was aid to the poorest of the poor in the developing world.

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"And yet they can blithely increase funds that go into tax-free prizes at horse races. They can, with the stroke of the same pen, write a cheque for the pet project of a Government minister.

"They can make sure there is plenty of money in the kitty for the entertainment, public relations and security that will surround next year's EU presidency."

He said total capital spending in 2004 would be €69 million lower than in 2002, even before inflation was taken into account, and some €1,500 million lower than the 5 per cent of GDP target set in the budget of 2002.

"The Minister is simply failing to invest in the future of the Irish economy," he said.

Labour's education spokeswoman, Ms Jan O'Sullivan, condemned the increase in registration charges for third-level education, by €80 to €750.

"The charge is now heading towards the amounts fees were at prior to their abolition in 1996 by the rainbow government," she said. This would "further turn the screw on low- and middle-income families who do not qualify for student grants and who are already reeling from the range of extra charges imposed by this Government.

"For example, a family with two students at third level will face an annual bill of €1,700 simply to meet these registration charges, representing an increase of €900 inside two years."