Lobby groups give mixed reaction to Budget

Reaction from lobby groups the Minister for Finance Brian Cowen's second budget has been predictably mixed

The Irish National Organistaion of the Unemployed (INOU) has welcomed the €17 increase in social welfare while anti-smoking campaigners expressing disappointment with the Minister for Finance's decision not to increase the price of tobacco.

Publicans meanwhile expressed dismay at the lack of change in excise duties on alcohol.

The INOU also welcomed the introduction of a new childcare payment and changes which will see national minimum wage earners be taken out of the tax net.

However, it said that "given the enormous resources available" more could have been done. "There are a number of announcements which are very welcome" the INOU General Secretary Eric Conroy said. "However, the apparent failure to increase both the Child Dependent Allowance and the secondary benefits income limit is disappointing," he said.

The Combat Poverty Agency welcomed the welfare package announced in the Budget , and said it would significantly increase income levels of adult welfare recipients. An increase of €17 in the basic welfare payment will bring to €165.80 the weekly payment to welfare recipients.

In relation to child poverty, Combat Poverty acknowledged the modest increase in child benefit to meet the Government target of €150 per month, an equivalent increase of €2 per week.

The organistaion pointed out however that older children in low income families would gain very little from Budget 2006.

ASH Ireland described absence of an increase in the price of tobacco as totally contrary to the Government's stated policy of creating a tobacco free society. "As the price of cigarettes has not been increased for two years-cigarettes are in real terms significantly cheaper than two years ago," a statement said.

"Price increase is established internationally as the single most important factor in encouraging smokers to quit and discouraging young people from experimenting with tobacco. Nicotine addiction is a scourge on society and people in all sectors require every assistance possible in confronting this addiction" the Chairman of ASH Ireland Professor Luke Clancy said.

The Vintners' Federation of Ireland (VFI) also said it was "bitterly disappointed" by Mr Cowen to reduce the "current exorbitant" excise duties on alcohol."

IFA President John Dillon said the Budget failed to address farm competitiveness.

"The Government's failure to address farm consolidation as the key farm tax issue will prevent farmers from developing the scale they need to produce on a European and world stage, particularly in the context of the damaging policy changes from WTO concessions," he said.

The Chambers of Commerce of Ireland (CCI) welcomed the thrust of measures taken to manage the economy and sustain its development in the future.

Initiatives in regard to fourth level education and childcare are particularly welcomed by the network. However, CCI pointed out that the Minister for Finance referred to the need for prudent budgeting, the macroeconomic impact of the budget may not be entirely benign.