There has been mixed reaction locally to Budget 2013, which has delivered €3.5bn worth of cuts and taxes which will have an impact right across the board.
Mayo Deputy and Fianna Fáil Jobs Spokesperson Dara Calleary has said there is “little hope” in this Budget for those out of work.
Deputy Calleary said: “I am genuinely surprised and disappointed by the absence of creative thinking on job creation in this Budget given the scale of the crisis. The Jobs Minister Richard Bruton has made a few modest announcements on supporting the job sector, many of which had previously been announced. But any benefit that this could have achieved was completely undermined when the Social Protection Minister Joan Burton swooped in, doubling the minimum level of PRSI contribution from the self-employed and abolishing the redundancy rebate.”
However Mayo Fine Gael TDs Michelle Mulherin and John O’Mahony have welcomed the job creation measures announced by the Minister for Finance, Michael Noonan, in Budget 2013.
A statements released by them said: “Budget 2013 contains measures which will address the difficulties many SMEs face in today’s difficult economic climate. One such measure is the 10 Point Tax Reform Plan. This includes measures such as reforming the three year corporation tax relief for start-up companies to allow unused credits to be carried forward; increasing the cash receipts basis threshold for VAT from €1 million to €1.25 million, and amending the close company surcharge; amending the R&D tax credit by doubling the initial spend eligible for the credit from €100,000 to €200,000 to encourage innovation and business expansion; and extending the Foreign Earnings Deduction for work-related travel to certain countries.
Both TDs also welcome additional access to credit for SMEs in Budget 2013. These include; improving response times at the Credit Review Office (CRO ), the publication by the CRO of specific guidance for SMEs on accessing credit from banks; and the development of a range of support funds to provide equity, finance, restructuring, and recovery investment.
Deputy Mulherin also welcomed the announcement that there is a rebate on diesel for the haulage industry. From July 1 2013 hauliers will be able to recoup 7.5 cent on each litre of diesel purchased.
According to the Deputy: “This is a lifeline for the haulage industry. It could literally make the difference for many hauliers between keeping their head above water and going out of business.
“Having made representations to Minister Noonan on this issue, I am delighted that he has introduced this measure. I know that it will be warmly welcomed by the haulage industry.”
Children and young families bearing the brunt
Mayo Sinn Féin councillor Rose Conway-Walsh has accused the Government of making children and young families bear the brunt of the Budget.
Condemning the cuts to Child Benefit, the Back to School Allowance, and Respite Care Grant in particular, she said: “By design this Government set out to target children and their working age parents on whom they depend. This was clear from the Comprehensive Expenditure Review published last year and it has come to fruition today.
“Less than one month since the passage of the Children’s Referendum, we see today the truth of this Government’s commitment to children. The numbers of children at risk of poverty and the numbers experiencing acute deprivation will rise as a consequence of this Budget. Basics such as food, clothing, and shelter will become unaffordable for hundreds and thousands of families.”
Cllr Conway-Walsh said: “A family of four children will be down €58 per month in child benefit cuts alone.”
Emergency public meeting
Sinn Féin will hold an emergency public meeting on Tuesday December 11 at 8pm in The Welcome Inn Hotel, Castlebar.
Councillor Thérèse Ruane said: “I am appealing to people to come to The Welcome Inn on Tuesday next to voice your opposition to this savage attack on ordinary people.”
Some main points of Budget 2013
Child benefit cut €10.
Maternity benefit to be taxed.
Motor tax to rise.
€1 excise increase on bottle of wine, 10 cent on pint of beer/ cider and measure of spirits.
10 cent on 20 cigarettes.
Third-level registration fees increasing by €250 a year .
New property tax based on market value.
DIRT increased to 33 per cent.
Increase in the prescription charge for medical card holders from 50c to €1.50.
Increase in USC for over 70s with incomes of more than €60,000.
Changes to PRSI will mean that all those earning over €18,000 a year will have €264 a year taken from their pay.
Duration of Jobseeker's benefit to be reduced by three months.
