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Inishowen reacts to Budget 2010 11.12.09

INISHOWEN people, like the rest of the country, were yesterday trying to digest Budget 2010 to see how it will affect them next year and in years to come. Many of the major cuts, such as Child Benefit and public sector pay were well flagged up, but the extent of the cuts in other areas such as Jobseekers' Allowance took many by surprise. Here are some of the main provisions:

*Child benefit cut by €16 per child to €150 a month.
*Unemployment benefit cut by 4.1% - to under €200.
*Public sector on salaries up to €125,000 will have wages cut by between 5-8 per cent. *Workers on salaries up to €200,000 face further cuts of between 8-15 per cent
*€8.20 cut in the weekly carer’s benefit
*50 cent levy on every item on prescription.
*Carbon tax - diesel up 4.9 cent a litre and petrol up 4.2 cent
*A €200,000 domicile levy on all Irish nationals whose income exceeds €1m

Reactions to Budget 2010:
 
Families should check out FIS: MANY families entitled to extra financial help due to being on a low income are not availing of the Family Income Supplement Scheme or FIS, says Senator Cecilia Keaveney.
"As the Budget has put more pressure on many families I think it is all the more important that people on low incomes check out avenues for extra financial support that they may well be entitled to," she said.
"From January a family of four children will be entitled to a FIS payment of €190 per week as a top up to their wages if one parent is working full time and the other working 19 hours a week and both are on the national minimum wage. Their net income (not gross) would be around €500 per week. This would give them a combined income from employment and FIS of about €690 per week. They would also be entitled to €155.53 of Child Benefit per week.
 
A massively missed opportunity: SINN Féin councillor Pádraig MacLochlainn has described Budget 2010 as a "massively missed opportunity to address the inequalities in Irish society".
"The Government has deliberately targeted the lowest paid and the unemployed to carry the heaviest burden of their mismanagement of the economy," he said.
Cllr MacLochlainn also noted 'the omission of any substantive job stimulus measures was "mind-boggling". "This should have been a Budget of hope, with economic stimulus, job creation and equity at its core. The Government could have introduced a third tax rate for people earning more than €100,000 a year; they should have introduced a wealth tax similar to the successful solidarity tax in France and capping higher end civil servants' pay would have been a massively fairer measure in comparison to the decision to now take a total of 12% in additional taxes from the lowest paid public service workers."
 
VAT and excise cuts should help: THE half per cent cut in VAT and cuts to excise duty have been welcomed by FF Deputy Niall Blaney. “This is very practical move and I know that it will come as good news to both retailers and consumers.
"The difference in the VAT rate and the favourable currency exchange rate across the border in Northern Ireland and in the UK, in general, has added to the pressure on retailers here in the last number of months.
“With the general downturn and people spending less, many businesses have been finding it hard to compete. This move by the Government should improve the situation somewhat," he said, urging Donegal people to shop local this Christmas.
 
Devastating blow for families: DONEGAL Sinn Féin Senator, Pearse Doherty has described the budget as a "devastating blow to Donegal families". He said it was also destructive to the local economy and a "disgraceful Budget from a Government desperate to protect high earners". "This Budget reduces social welfare payments for the 20,000 unemployed people of Donegal, it partially charges our 78,000 medical card holders for their medication, and over 35,000 Donegal children don't escape the blow either as their allowance is cut by €16 per month.
"It is beyond belief that this Fianna Fáil Government has cut funding for primary schools by 27% at a time when 61 schools in Donegal are waiting for over twenty years for a new school or extension to their existing school," he said.
  
Budget strongly linked to ECB: PEOPLE'S Movement chairperson and former MEP Patricia McKenna has said the link between Budget 2010 and the European Central Bank "must not be ignored or brushed aside". "We no longer have our own money, or our own exchange rate or our own interest rate. In addition, our own Central Bank has no real independent control over banking regulation or monetary policy. That is all coming from Frankfurt," said Ms McKenna.
"There is no doubt that this budget has been designed with the needs and demands of the ECB taking centre stage. If anyone believes that our Government put together a Budget in isolation of EU demands or without checking the acceptability of their proposals with the powers-that-be in Brussels and Frankfurt, then they are gravely mistaken.”

Mixed message for Donegal tourism: BUDGET 2010 has brought a "mixed message for Donegal tourism", says Senator Keaveney. "On the one hand there has been a very welcoming tripling of the capital programme for product development to some €22m.
"The programme to encourage older people to holiday in Ireland with reduced priced rail vouchers, while novel, won't impact at all in Donegal unless there is an island approach to the train services covered and that the buses are covered also."

DEPUTY Niall Blaney has described as "significant" the measures in Budget 2010 to support and create jobs, retrain people, and assist employers. “The measures introduced coupled with Government initiatives that are already in place will help sustain and create employment opportunities.
“It’s vital that we continue to invest in job stimulation and retraining to get people back working so that we are in a position to take advantage of the upturn when it comes.”
“In particular I am happy that we were in a position to offer one-year employers’ PRSI exemption for all new jobs created for unemployed in 2010.”
“This will help in the creation of jobs and take some burden off employers who have been finding it hard to maintain wages bills.”
  
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