Employees' unions disappointed with Budget

Employee unions this evening described the Budget as a "huge disappointment" to thousands of workers who hoped PPF commitments on tax, social insurance, childcare and child benefit would have been honoured.

Ms Joan Carmicheal, a spokeswoman for the Irish Congress of Trade Unions said their union was disappointed that those on a minimum wage had not been lifted out of the of the tax net.

The National Women’s Council welcomed the £25 rise per-week in children’s allowance as a measure to reduce child poverty but added that it was less than half-a-day’s child-care in Dublin.

SIPTU’s Ms Rosheen Callender, said: "The increase in personal tax credits, which is worth an extra £4.17 per week for tax payers combined with the increase of £5.77 per week in child benefit, will improve the weekly income of a woman on the female average industrial earning (£275 per week) by a mere £9.94 per week, if she has one child.

"If a working woman is paying £150 per week for childcare - as a recent ICTU research indicates - an increase of less than £10 per week is of virtually no benefit in meeting that cost," she added.

ICTU president, Senator Joe O'Toole, said he was disappointed the Minister had crumbled in front of IBEC and employers in relation to PRSI.

"The reduction in Employer's PRSI is effectively an early Christmas present of €350 million for employers," he said.

On behalf of the INTO, Mr O’Toole said the provision of an additional €36 million for capital expenditure on primary school buildings is a step in the right direction.

The Irish National Organisation of the Unemployed described the £8 dole increase as a "disgrace".

Ms Noeleen Hartigan, said: "Instead of ensuring that the 140,000+ currently on the Live Register and the thousands more that will join them in the next few month have a decent income, the run the risk of yet again widening the gap between rich and poor."