Frantic lobbying as budget takes shape

DAY AFTER day and leak after leak the picture of what could come in next week’s budget is slowly taking shape.

The broad range of proposals trickling out of recent Cabinet meetings is unlikely to have eased concerns over what’s to come among the many interest groups that have been busily lobbying department officials and Ministers about their areas of concern.

It has emerged that an increase to the higher VAT rate, changes to sick pay arrangements, cuts to child benefit and the closure of nursing homes are among the options on the menu that has been drawn up to help the Government arrive at an eventual €3.8 billion in savings and revenue raising measures.

The Department of Finance said it had received more than 300 pre-budget submissions – which anyone is entitled to make – from lobby groups, charities, trade unions, businesses and individuals seeking to get across how they think their particular interests should be funded and how required savings could be achieved elsewhere.

The proposals this year range from simple requests like maintaining social welfare payments at current rates to more detailed ideas such as encouraging private pension funds to invest billions in shelved infrastructure projects in order to generate employment opportunities.

It is clear from reading a sample of the submissions lodged that the days of drawing up pre-budget shopping lists are effectively over, or at least on hiatus, and that the majority of groups would be more than content to just hold on to what they have at present.

“I think people are being more realistic about what they can expect,” a Department of Finance source said.

“In the past submissions were often about investments that would improve people’s quality of life but lately theyre more about prioritising and protecting what’s available and suggesting ways of saving money in certain areas.”

This year it appears that many groups are attempting to put forward proposals that would help their area of interest to live within its means. For example, the Irish Medical Organisation is seeking increased funding for mental health services and resources to expand chronic disease management and prevention.

It is seemingly putting forward a means to balance the books by proposing an extra levy of €2 on a pack of 20 cigarettes and a sliding scale of taxes on alcohol, the spoils from which could be earmarked for health initiatives.

Small business group Isme appears to be seeking a tax-friendly budget, with reduced expenditure on welfare and the public sector proposed while seeking incentives for individuals and pension funds that invest in small firms.

Although the Department of Finance has been inundated with submissions from interested parties, it appears the proposals from a considerable number of groups have been met with an open ear.

Access to highly placed personnel has been gained by many of the interest groups contacted with the majority saying they had held meaningful discussions with the Minister relevant to their area and others having had time to put their points across in face to face meetings with the Minister for Finance and the Taoiseach.

“They [the Ministers] seem very willing to listen,” said one member of a lobby group. “It has been different to other years. They’re floating an awful lot more ideas in the media but not committing to or ruling anything out when we talk to them.”

Socialist TD Joe Higgins last week accused the Taoiseach and his Ministers of “cynical kite-flying exercises” about possible cuts and of manipulating the media and the public with budget-related “horror stories”.

With the Taoiseach refusing to even commit to the proposed 2 per cent VAT increase included in the confidential Government documents embarrassingly leaked via the German Bundestag, it may well be budget day before we learn exactly how many kites have been flying around Merrion Street.