Most trade unions gave a cautious welcome to the Budget yesterday, hailing the increased personal tax allowances, but regretting the size of the social welfare increases.
The general secretary of the Irish Congress of Trade Unions, Mr Peter Cassells, welcomed the improvements for PAYE workers. He also welcomed the improvements in pensions and social welfare, but added that much more needed to be done, especially in the area of social welfare.
"Today's Budget should be seen as the small start of a new approach to developing Irish society for a new millennium," he said.
The largest union, SIPTU, said that the tax provisions repaired the damage done to Partnership 2000 by the 1998 Budget. Its president, Mr Jimmy Somers, said the provisions met Partnership 2000's tax commitments, but the same could not be said for the social welfare increases.
"The very low £3 increase in the other [other than contributory] rates of social welfare payments will not be sufficient to raise living standards, and the extra 60p for the two lowest rates will only barely bring these rates up to the agreed minimum target," he said. "The very low increases in child benefit and family income supplement are also regrettable."
Mr Somers also regretted that there was no commitment to the 10,000 places in part-time and full-time jobs initiatives aimed at the over-35s who had been unemployed for more than three years.
MSF, which represents people in skilled and professional areas, criticised the failure to tackle "the two major problems facing middle-income families, namely the ever-rising cost of purchasing a home and child care".
Its acting national secretary, Mr Jerry Shanahan, said the failure to increase capital gains tax would lead to the continuation of property speculation. "After all, the income derived from such speculation will only be subjected to 20 per cent tax, much lower than the 46 per cent tax imposed on income derived from work." He also appealed for more re sources for the Revenue Commissioners to allow them to increase audits for the self-employed.
MSF opposed the cutting of corporation tax to 12.5 per cent, claiming it will have a debilitating effect on future ability to invest in economic infrastructure.
Impact, which represents workers in the public service, welcomed the move towards a system of tax credits.
The most stringent criticism of the Budget came from the Amalgamated Transport and General Workers' Union, which called on the trade union movement to "reject its business-as-usual relationship with the Government and embark on a new political programme without the straitjacket of national agreements".
Its regional secretary, Mr Michael O'Reilly, said the Budget would "damage future economic investment, undermine the quality of life and widen the gap between rich and poor. By squandering the £1 billion surplus on the national debt and slashing corporate tax rates, public services will remain impoverished while social welfare recipients and the long-term unemployed will fall further behind the better off."