Wednesday, November 23, 2011

Who's your Paddy now?

Are the Irish people all blind, deaf and dumb, or just plain stupid? For that what must be our European counterparts are thinking. One of the worst budgets in the history of the Irish state is about to brought in and the Irish people are arguing over who should pay most instead of pointing the figure at the people to blame - bankers, bondholders, speculators and politicians.

Instead, it's all about begrudgery - one parent families, dole 'scroungers', people who have children 'they can't afford' are all set to feel the brunt and those still working think that's okay. Everyone seems to be neglecting the fact that none of these cuts or new taxes are happening because there are massive problems in the existing systems. Sure, the systems aren't perfect, but these cuts are happening for one reason, and one reason only' to pay back the loan sharks in the EU and the IMF. And, by doing so, we are making these people from foreign lands our new policy makers.

Let's look at what's on the table:

VAT cat.
An increase of 2% in VAT. The incumbent government doesn't want to renege on what must be the only unbroken election promise they have left - not to raise income tax, so they're going to hit VAT instead. The result will be disastrous for business, employment, the economy and struggling households everywhere. Add either minimum pricing for alcohol, or what is more likely, a big increase on excise on wine and beer and thousands, me for one, will be doing a lot more shopping up north, taking more money and jobs out of the economy. VAT affects everyone regardless of income. The sensible thing here would be to raise income tax with a emphasis on the higher paid. I'm sure the new chief of AIB who has just been appointed on a salary of €500,000 can afford a bigger contribution than a family of four struggling on one minimum wage salary.

A decrease of €10 in child allowance. 
On forums such as Boards.ie, the debate is all about whether or not we should have child allowance at all. Typically, those against, have no children, claiming: 'Don't have children if you can't afford them.' They seem to ignore the fact that every society needs children. These children become the citizens, workers, employees and politicians of the future. Like every element of society that can't look after themselves, we must all contribute for their benefit for the good of society.

Sure, get rid of child allowance, in it's place put tax credits for parents and introduce free childcare/creches for all and take a few thousand people off the dole in the process. Okay, that might take some time to implement, so in the meantime, means test; eligibility for child allowance is lost when the income of the family unit exceeds €100,000.

€8 off the dole. 
There is no doubt that dole payments in Ireland, at €188, are too high, certainly compared the UK's £65 per week. But not for all. That same family of four will struggle on the dole. One of the inequalities in the existing system is that a couple living together with children receive one and half dole payments, while two people sharing an apartment with no children to look after earn two dole payments. No wonder the one parent family allowance system is abused. As for the self-employed, it's best not go there. The country's entrepreneurs and employers are penalised for initiative - they're entitled to nothing. Cut the dole for single people each year they remain unemployed. Abolish one parent family allowance. Add an increment for each child. There are no jobs out there, self-employment has to be incentivised.

€50 medical card.
We should be moving closer to UK NHS system not further away. Without free healthcare, people die.
Private health insurance is overpriced and you get little for what you pay. No wonder so many are foregoing it. Members of our society need to be able to afford to visit a GP when required as this will take some of the burden off the health service. Free medical care has to be provided for those that can't afford it and at a reasonable cost for those who can. There is only one way to provide for this in a small country like ours and that is higher income tax. Not another stealth tax.

Higher 3rd level fees.
Third level education shouldn't be for the rich only. Everyone in society deserves a chance to be the best they can. Introducing fees simply stops people getting those chances. Why not adopt a Australian system where students pay through a higher rate of tax after university.

Household charge.
The government admits that the £100 household will increase substantially next year. It too is levied across the board just like the infamous UK poll tax hitting the poorest hardest, the rich won't even feel it. Will bin charges go? Or the TV licence? No. What do we get in return? Nothing. And we still have water charges to come next year for which there will be no improvement to the water system either.

These are just a few of the measures being considered for this horrific budget. We'll see them all in one form or another along with many other poorly thought out, ill-conceived plans, all to cut the nation's debt. And therein, lies the rub, none of these measures are there to improve things, to rectify the mistakes of the past, nothing for the people, nothing for the country. Stealth taxes, such as the medical card fee, won't go towards a better health service; increased carbon tax doesn't go towards improving our environment; the proposed fat tax doesn't go towards health initiatives; the household charge won't go towards improved services. Instead, everything goes to paying faceless bondholders because our new rulers in the EU/IMF says so. In the case of child allowance that means taking money used to feed, clothe and care for our children and giving it to rich people who don't even live here!

The honeymoon is over. Let's get a divorce.
All this from a government that supposedly includes a labour element. As for Fianna Gael, they blatantly lied their way into power. Their electoral promises lie broken the length and breadth of the country. And this budget will, without doubt, be their downfall. All we got was more of the same, a government with no balls, no talent and no insight. This budget could have had so many positive measures. Unsecured bondholders could have paid their folly, the banks could have paid for their mistakes, the rich could have paid their way.

Is the government so thick that they think the Irish people will stand by and do nothing? Do they think they are so different from the oppressive governments in the Middle East because we are a western democracy? Apparently so. And you could forgive them for that that considering our apathy to date. But, mistakes of this enormity after what has gone before are sure to elicit a more vehement response from people that have been pushed to the very edge without consultation and who have been blatantly misled for their vote.

Now we need a government that will take action on behalf of its people. One that will honour its promises, rectify the mistakes of the past and fight for us - the people who elect them. This government is not it. Enda Kenny was not given a mandate to imprison the Irish people to poverty on the orders of our European overlords. And blaming the past government just won't cut the mustard any longer.

'And I say to my people's masters: beware, beware of the thing that is coming.
Beware of the risen people, who shall take what ye shall not give.
Did you think to conquer the people, or that law is stronger than life,
and than man's desire to be free.
We will try it out with you, ye that have harried and held,
ye that have bullied and bribed: tyrants, hypocrites, liars!'

- The Rebel - Patrick Pearse

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