Dáil debates
Wednesday, 9 December 2009
Financial Resolution No. 1: Excise (Alcohol Products)
7:00 pm
Pat Rabbitte (Dublin South West, Labour)
The truth is that we knew there would be serious cuts in this budget, everyone in the House saw that as an inevitability. Most of us on this side of the House, however, expected the Government to address the other side of the balance sheet and that there would be some element in it to restore growth as quickly as possible leading to job creation.
No one anticipated that when we said we would accept cuts that those cuts would be made to the blind person's pension, the carer's allowance, the disability allowance or those on the most basic pay in our society. People earning €30,000 will have their pay cut by 5%.
Everyone here expected the 5% cut operating for those earning from €30,000 up. Instead, by sleight of hand, the budget figures imply there will be a 15% cut in ministerial pay. We then find out that it is really only 5%, it is a 15% cut on the notional rate that applied before the 10% voluntary contribution last year. Ministers are cutting their own pay by 5% while they are cutting the pay of those at the most basic level of the public service by 5%. People on €30,000 will be cut by 5% while Ministers on €200,000 will be cut by the same amount. It is completely inequitable.
What job stimulus is there in the resolution? The only element of job stimulus is to reduce the price of drink. The weakness of sterling is the main issue, followed by the increase in VAT last year, which triggered the shopping spree in Northern Ireland. The Government now comes in and reduces the excise rate on the very same day the OECD publishes a report, "Health at a Glance 2009", that points out that of the 30 countries surveyed, Irish people are among the biggest consumers of alcohol. Having looked at spending and lifestyle habits across 30 OECD countries, we are the second highest consumers of alcohol. The Minister for Health and Children, however, leaves the House as the issue is raised.
The Minister for Health and Children has been advised by the Chief Medical Adviser about the damage being done in this society as a result of the levels of alcohol consumption. His Minister with responsibility for drugs has just produced a revamp of the national drugs strategy and, on this occasion, he has included alcohol abuse; I think, on balance he is right. We know that notwithstanding the damage being caused by opiate abuse and by other drugs misuse in this society that the greatest damage is being caused by alcohol abuse. The one provision in the budget that is being sold as a measure to stimulate revenue retention and job retention in this jurisdiction is to lower the price of drink. That is unbelievable.
The provision of 26,000 places for new trainees is welcome. The retrofitting for which we argued from these benches for the past 13 months is welcome but it has been announced and reannounced. This is the major jobs stimulus measure in the budget and it is almost beyond belief. One kicks away the blind man's stick, cuts the blind man's pension and on the other side of the balance sheet cuts the price of drink. That is a terrible epitaph for this dying Government.
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