Tom Fleming (Kerry South, Independent) | Oireachtas source

This is a totally regressive budget. It is an attack on the householder, the sick, the elderly and the families and children of Ireland. It has compounded the layers of austerity imposed in four previous budgets by, once more, stripping the weaker sectors in society who have already had to endure job losses, negative equity and mortgage default while billions of euro are handed over to foreign bondholders.

The budget offers no hope to the hundreds of thousands of exiles who have left our shores over the past five or six years. It is likely that the exodus will accelerate after this week.

The property tax is being introduced at the most inappropriate time, shortly after the property crash. The property market is still on the floor and prices have not even bottomed out yet. A number of months ago, Deputy Peter Mathews ascertained, in a parliamentary question to the Minister for Finance, that more than half a billion euro could be accrued from a third rate of income tax, placing a 5% surcharge on incomes over €120,000. Deputy Mathews subsequently proposed that this would fund the annual income derived from the property tax. I am disappointed that his proposition was neither considered nor acted upon. The proposal was not simplistic and nor would it have been complex to implement. The method of collection would be straightforward and I believe the troika would have agreed to it. It does not matter to the troika where money is derived from so long as it is paid. The proposal by Deputy Mathews was never followed up on and many people, myself included, are disappointed that it was not pursued. The tax would also have been based on ability to pay.

The huge mortgage arrears crisis has gone out of control and the vast majority of people will not be able to pay the property tax. Up to date statistics indicate that 170,000 people are in arrears or are having their mortgages restructured.

The proposed format of the cut in child benefit it crude and cruel. A family of four children will suffer a reduction of up to €700 per annum. This is a hammer blow to the average Irish family. The only fair and equitable system is to means test child benefit and let reductions apply to those at the upper end of the income scale. Child benefit to those earning between €70,000 an €90,000 could be reduced by 25%, to those earning between €90,000 and €100,000 by 50%, to those earning between €100,000 and €120,000 by 75%, and abolished after that. A huge hardship and sacrifice is being imposed on those people who really need the benefit and are on the breadline. The system I have outlined would make essential welfare money available for those who most need it.

On the child benefit issue and with regard to the respite care grant, household benefits and medical cards, the Government will have to get back to the drawing board and consider reversing and amending these very harsh measures. They are neither fair nor equitable. Surely the Minister for Social Protection can renegotiate with providers of utilities, get better value for the €61 million being expended and spread the money around better.

The abolition of PRSI exemptions is a drastic decision. The reduction in the back-to-education allowance and the taxing of maternity benefit will drive families further into poverty. The threefold increase in the medical card prescription charge, from 50 cent to €1.50, is amazing and is another hardship on those at the lower income level.

The means test for medical cards removes the allowance for the card to work - people are not even being allowed essential improvements to their homes because of the means test. With the weather conditions we have seen in recent years, this is a retrograde step. In rural areas people need a car; there is no Luas or bus service. We should have made allowances for that. I am amazed at the €17 million reduction in child family resources. I hope this will be reversed and that we will look after those with disabilities and special needs, and home helps. We have a caring society so I ask the Ministers to take note of what we are saying and address the deficiencies over the next month, while ensuring the HSE gives proper money to those I have referred to.

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