Public service tax credits dismissed by Lenihan

MINISTER FOR Finance Brian Lenihan has dismissed an idea from Green Party chairman Senator Dan Boyle to offer tax credits to low paid public servants whose wages are being cut.

Following the Budget announcement of a reduction of 5 per cent on the first €30,000 of salary from January 1st, Mr Boyle suggested a mechanism to reimburse public servants could be included in the Finance Bill.

"There is undoubtedly an anomaly there . . . I would hope that we might look in the Finance Bill at some way of making that more equal," he told RTÉ's The Week In Politics.

“It is difficult to see how it could be done but you could possibly have a tax credit of some type. You could have a mechanism whereby the adjustment in the cut is paired more prudently in that area.”

However, Mr Lenihan said altering the 5 per cent cut in pay would be difficult.

“I think that would be very difficult because again it is something that the unions themselves offered at the very start of this discussion,” he said.

The Minister also warned further pay cuts would be inevitable if industrial action brought about a deterioration in the public finances.

“If we are going to have a continued campaign of go-slows and low-grade industrial action then what will inevitably happen in time is a further loss of morale in the public services.

“And what will inevitably happen in time, if the finances continue to deteriorate as a result, is further reductions.”

Mr Lenihan said he did not want this situation to come about and would “far prefer” to make savings next year through improved performance in the public service.

Fine Gael will use its private members’ business time in the Dáil tomorrow to call on the Government to reverse Budget cuts affecting carers and the disabled.

The party’s spokesman on social and family affairs Denis Naughten said TDs who supported the Social Welfare Bill in the Dáil last week would get a “second chance” to consider their decision.

“Fianna Fáil and Green TDs will have an opportunity to become reacquainted with their consciences and vote against the 6 per cent cut in social welfare payments to carers, people with disabilities, and the blind,” Mr Naughten said.

The Roscommon-South Leitrim deputy claimed there were other ways to save money within the Department of Social and Family Affairs.

About 80 people attended an Alliance Against Cuts protest in Dublin city centre on Saturday.

Cllr Richard Boyd Barrett said the low turnout was “kind of expected” but was part of an ongoing campaign against Budget cuts. The meeting was “more to just put out a marker as part of an ongoing campaign,” said Mr Boyd Barrett.

Commenting on the turnout, he said “it’s a difficult time of year to mobilise people”. In addition, “it’s harder to organise the unemployed. People who have lost their jobs are demoralised and humiliated and its harder to get them out”.

He said, however, that a sizeable protest was expected for tonight’s Dún Laoghaire-Rathdown council meeting when demonstrators express opposition to the proposed closure of Sallynoggin library and a supervised play centre.

The Alliance Against Cuts is planning further protests for council Budget estimates’ meetings.