Budget support is high, says Ahern

The Government clearly did not explain sufficiently clearly what it was trying to do if there were misunderstandings about Budget…

The Government clearly did not explain sufficiently clearly what it was trying to do if there were misunderstandings about Budget 2000 which led to the controversy over tax and women in the home, the Minister for Social, Community and Family Affairs, Mr Ahern, said yesterday.

The Government was committed under the Partnership for Prosperity and Fairness to continue the reform of standard bands in future budgets.

"We need to ensure not only that reforms continue to be fair and equitable but that they are seen to be fair and equitable by all concerned," the Minister told the annual conference in Dublin of the Foundation for Fiscal Studies. The theme of the conference is "Fiscal Policy and the Family".

The current economic boom had had a major impact on family life. For example, there had been a significant increase in the number of women, particularly married women and women with children, in the workforce, he said.

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The move to reform the system of standard bands so as to recognise modern working patterns and reduce dramatically the proportion of people paying the higher rate of tax on relatively low earnings was begun in the last Budget.

All the social partners, including Government, had had to look at their policies in relation to participation in the labour force. Taxation policy was a key measure in this area, he said.

"I believe that much of the opposition was based on a misunderstanding of the issues and that, if a similar poll was taken today, now that people have had a chance to see the benefits, the level of support would be much higher."

There was still a significant gap in policy approach on acknowledging the value of unpaid work in the home, in the community and in a wide range of voluntary endeavours.

The new tax allowances introduced for workers with full-time caring responsibilities in the home provided financial recognition in a way which was more direct and effective than previous measures. The Government was committed to supporting parents in meeting their childcare needs, Mr Ahern said.