The 1999 Budget was one of contrasts - very good on income tax reform but very bad on tackling poverty - according to the Conference of Religious in Ireland.
In its 25-page analysis of the Budget, CORI, which represents 13,000 religious in 1,400 communities throughout Ireland, yesterday said substantial progress had been made towards a fairer income tax system. However, given the significant Budget surplus projected for 1999, it was "a great pity" that poverty had not been undermined.
Father Sean Healy, CORI's spokesman, said that by the Government's own measure of poverty, more people could end up in want because the increase in average industrial wages was not being matched by payments at the lower end of the social welfare system. While the minimum rates recommended by the Commission on Social Welfare in 1986 had been met, the Government needed to give the same priority to tackling poverty as it did to income tax reform.
"If it had the same impact on poverty as it had on the income tax system, then I would be really, really happy with the Budget," Father Healy added.
CORI found the Budget exhibited an extraordinary failure to understand the severe struggle of those living on social welfare while demonstrating "a great understanding of the plight of the bookie whose clients were succumbing to the lure of offshore tax-free telephone betting".
Further contrasts could be observed in the Budget's attitude to the corporate sector and to those on social welfare. While social welfare payments had not kept pace with the growth in the average industrial wage, corporation tax was being substantially reduced, to a point where the sector was paying £250 million less in taxation over the two Budgets introduced so far by this administration.
Meanwhile, housing and hospital waiting lists would persist at totally unacceptable levels; the failure to make childcare provisions meant many people would not avail of employment opportunities; adult illiteracy would remain largely untackled and rural exclusion would persist as before; first-level education and adult illiteracy were not adequately addressed. CORI was also extremely critical of the reduction, as a percentage of GNP, in the allocation of Overseas Development Aid and described the situation as "disgraceful".
However, in a positive reaction to changes in the income tax system, CORI said the Government had accepted the need for fundamental reform and recognised that the "traditional tools of taxation were inadequate".
The move towards tax credits was to be welcomed and the Government now had the capacity to allocate the same gain from tax changes in future budgets to everyone.
But with at least 40 per cent of the population on social welfare or low pay, the need to integrate the tax and social welfare systems grew even more obvious.
The Budget had failed to provide an adequate response to unemployment, and far greater developments were needed to assist the long-term unemployed. Nor was there any evidence of a coherent, integrated rural development strategy. It had not addressed environmental concerns and had taken just minimal steps towards the development of an environmentally-friendly public transport policy. Given the magnitude of available resources, the response to housing needs was lamentable, CORI said.