Minister for Finance Michael Noonan and Minister for Public Expenditure and Reform Brendan Howlin have completed their traditional post-budget radio interview on RTÉ, fielding questions from listeners who consider themselves adversely affected by the budget.
John, a pensioner from Mallow, Co Cork, described the return of a quarter of the Christmas bonus as “derisory” and urged the Ministers to think about older people, those who were sick and young people.
“What have politicians down the ages got against older people? They seem to love to cut the gains that we’ve fought for and there’s no justice.”
Mr Howlin said he understood what John was saying but he did not agree with it.
James from Donegal, on an invalidity pension and married to a woman on illness benefit, asked the Ministers what had been given back to him, other than the partial Christmas bonus.
“Is it worth working at all?” he asked. Mr Howlin asked him to leave his details, and said he hoped the additional payment of €48 euro at Christmas time would be a small help.
James said the motorised transport grant had not been replaced after two years. Mr Howlin said the Government was in the process of putting in place an alternative that would the meet needs of people.
Brian, a self-employed worker, asked Mr Noonan about people who earned more than €100,000.
He asked Mr Noonan how he could justify politicians paying eight per cent in USC and self-employed people 11 per cent. “Either raise the 8 to 11 or lower the 11 to 8,” he said.
Mr Noonan said the two situations were not comparable but the gap was “wider than one can justify”. He said that what was announced yesterday was a three-year programme and “we’ll see where it goes in year two and year three”.
David described himself as a reformed smoker. Nevertheless he was concerned about the increase in the price of cigarettes.
Mr Noonan said the increase was a health measure and a disincentive especially for young people, rather than a revenue raising measure.
Another caller, Brendan, had a question about tax individualisation. He described him as a stay-at-home dad in a poor household. He said the tax individualisation system was unequal and unfair to families like his.
Mr Noonan said individualisation had bedded in now and was an integral part of the tax system. Mr Howlin said the Government had been given independent advice to retain tax individualisation.
The caller, Brendan, said the measure had been brought in by the “Darth Vadar of Irish economics, Charlie McCreevy”.
Mr Howlin said it would cost €700 million to revert to the situation pre individualisation.
Mr Noonan agreed with the caller that he had criticised it at the time, but said society had changed. However, he added: “I’ll see can anything be given by way of an individual allowance”.
Shortly before 10.50am, Jane, the first and only woman caller asked a question about working families with very small children. Why was there no second free pre-school year, she asked.
Mr Howlin said it would cost €175 million and he did not have it.
