THE LABOUR Party has described as “alarming” indications that one-third of the €3 billion package of spending cuts planned by the Government will come from the welfare budget.
“The suggestion that basic welfare rates should be cut by 5 per cent is of particular concern,” said the party’s spokeswoman on social and family affairs Róisín Shortall.
She said the Labour Party does not believe there is any case for cutting these basic rates that are in most cases at or barely above subsistence levels.
The suggestion that cuts in welfare rates should be considered was made in the report of the special group chaired by economist Colm McCarthy.
“Justifying a cut by linking social welfare to the rate of inflation is disingenuous,” said Ms Shortall. “The recent drop in the Consumer Price Index has been driven primarily by falls in mortgage interest rates, but many of those claiming welfare are not in a position to enjoy that fall. Meanwhile the cost of clothing and footwear and of transport have all increased this year.”
Ms Shortall said many of those beating the drum to cut the paltry incomes of those on social welfare were the same people who have defended tax breaks for the wealthy over the years.
She said the most effective way to reduce the cost of social welfare would be to get people back to work, but she expressed the fear that the jobs subsidy scheme announced last week by Tánaiste Mary Coughlan would prove to be inadequate. “We need to temporarily nationalise the banks to get credit flowing again. We should be giving employers tax breaks to take on additional workers.”