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Union: Slash top pensions, not care grants


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Union: Slash top pensions, not care grants

Saturday, December 08, 2012

One of the country?s biggest unions mounted pressure on the Government to abandon budget cuts that will hit the vulnerable.

Siptu called on the Taoiseach to instead fast-track measures to squeeze more funds from premium pensions instead of slashing respite care grants, funds for jobseekers, and school supports.

The plea came as ministers and Coalition leaders stood by the budget plans for next year despite backbenchers pushing for some roll-back on the tougher cuts and extra charges.

Siptu president Jack O?Connor wrote to Taoiseach Enda Kenny yesterday proposing that cuts targeted at the most vulnerable, such as the 20% reduction in respite care grants, be abandoned.

Mr O?Connor instead proposed that the Government fast forward plans to curtail tax relief for pensions in excess of ?60,000. Squeezing more funds from the high-earning pensions next year, as opposed to only from 2014, would generate some ?125m in revenue, he said.

He later told RT? radio that if the Government "got the finger out" this revenue- earning move could be rolled out in six months without upsetting the arithmetic of the budget. "That money could be deployed to alleviate the impact of the measures affecting people who are less well off."

The Government plans to reduce jobseekers? payout periods by three months, cut respite grants from ?1,700 to ?1,375 and reduce the back-to-school clothing and footwear allowance by ?50. These cuts will save ?73m, said Mr O?Connor. But they could be offset if tax relief for premium pensions was curtailed sooner, he argued.

In response, the Department of Finance last night said more than six months was needed for technical work to prepare the pension tax changes.

Labour?s Michael McNamara said TDs were privately pressing ministers for planned cuts to be abandoned. The Clare TD said colleagues travelling home this weekend would find it difficult to explain why money was being taken from children. However, Dublin South Central TD Eric Byrne said forcing a U-turn on cuts would be difficult.

Earlier, Labour Party staff and TDs were briefed by officials from the Department of Social Protection over planned cuts.

However, ministers stood over the budget measures yesterday. Social Protection Minister Joan Burton said it was about getting people back to work and repairing the economy, while Jobs Minister Richard Bruton said that "it is not going to be changed".

The defiant stance by the Coalition came as around 100 carers and their families protested outside Leinster House yesterday. A similar demonstration was held in Ennis, Co Clare.

Catherine Cox, of the Carers? Association, said the cut in the respite care grant was "unacceptable and unfair".

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