2009 Irish budget
Presented | 14 October 2008 |
---|---|
Parliament | 28th Government of Ireland |
Party | |
Minister for Finance | Brian Lenihan |
2009› |
The 2009 Irish budget was delivered on 14 October 2008, as the first budget in the tenure of
Public outcry arose over the proposed withdrawal of medical cards and the reinstatement of university fees. A series of demonstrations ensued amongst teachers and farmers, whilst on 22 October 2008, at least 25,000 pensioners and students descended in solidarity on government buildings at Leinster House, Kildare Street, Dublin.[2] Changes to education led to a ministerial meeting with three Church of Ireland bishops over what was viewed as a disproportionate level of cuts to be suffered by Protestant secondary schools.[3] Separately, representatives of the Roman Catholic Church were assured by Minister for Education and Science Batt O'Keeffe that it would continue to be able to provide religious instruction to pupils in primary schools not under its patronage.[4]
Rebellion within the ranks of the ruling
Announcement
The Irish government announced on 3 September 2008 that it was to bring forward the 2009 government budget from its usual December date to 14 October 2008.[5] In a statement the government claimed that this was largely due to a decrease in the global economy.[6]
Important budget features
Irish government budget for 2009 introduced a number of new proposals which generated controversy in the weeks that followed. Ultimately a number of these proposals were either altered or abolished entirely.
The initial announcements included:[7][8]
- A new levy of between 1% and 2% on all incomes.
- Excise duties on cigarettes, wine and petrol all increased. The price of 20 cigarettes and bottles of wine were both increased by 50c. The price of a litre of petrol increased by 8c. Betting tax doubled to 2%, whilst motor tax increased by between 4% and 5%.
- VAT all increased. The standard rate of VAT rose by 0.5% to 21.5%,[8]whilst DIRT rose 3% to 23%.
- Automatic entitlement to a medical card for the over-70s was abolished.
- Old-age pensions increased by €7 per week.
- Limitations were placed on entitlements to child benefit and childcare supplement.
- A€200 levy was imposed on employer-provided parking spaces in urban centres.
- 41 state agencies and bodies were to be abolished, amalgamated or privatised.
- There was to be a slowdown in decentralisation.
- Stamp duty on ATM cards was halved, paid for by an increase in stamp duty on cheques.
- Extra stamp duty relief was announced for first time buyers as was an increase in the size of local council mortgages, and a cut in stamp duty on commercial property.
- Ministers and Ministers of State took a 10% pay cut.
Lenihan expected the economy to decrease by 1.5% in 2009, as measured by GNP, with GDP contracting by 0.75%. He suggested that unemployment would increase to 7.3% but inflation would decrease to 2.5%. He suggested a budget deficit of 6.5% of GDP in 2009, (compared to the EU limit of 3%). Current spending was predicted to rise by 1.8%, with a current deficit of just over €4.7 billion and a capital deficit of €8.7 billion expected.
Health cuts
Medical card controversy
Prior to the announcement of the government budget on 14 October 2008, each person over the age of seventy living in the Republic of Ireland was entitled to a medical card providing free medical, dental and optical treatment and medicines. The budget proposed to change this and introduced a means-tested system of benefits. The proposed income eligibility limits to be introduced for over seventies were published on the Health Service Executive's website on 15 October 2008. The site stated that the net weekly income limit for medical card eligibility would be €201.50 for a single person, €173.50 for a single person living with a family and €298 for a married couple.[9] One day later, these eligibility levels were increased so that the income rate for a single person would be €240.30, the income rate for a married couple was increased to €480.60 per week, whilst the previously proposed rate of €173.50 for a single person living with a family was abolished.[10]
Significant political upheaval in the Oireachtas followed the publication of the proposals. On 17 October, County Wicklow Deputy Joe Behan resigned his position citing his discomfort with the medical card changes and the proposals to increase school class sizes. He suggested that past taoisigh Éamon de Valera and Seán Lemass "would be turning in their graves at the decisions made in the past week".[11] Independent Deputy Finian McGrath then threatened to withdraw his support for the government unless the plan to remove the overs 70s automatic right to a medical card was withdrawn completely.[12] Taoiseach Brian Cowen postponed a planned trip to China, sending Minister for Education and Science Batt O'Keeffe ahead to lead the delegation.[13]
Despite a government promise to retain medical cards for 95% of over-70s, an estimated 15,000 pensioners joined in a demonstration organised by the Irish Senior Citizens Parliament on 22 October. This protest, dubbed "the grey army" by media reports[14] included representatives from organisations such as the Tara Disabled Mineworkers, Pensioners' Association, Mayo Active Retirement Association and the Socialist Party as well as numerous independent protesters, marched on Dublin's Leinster House to protest the changes to their medical card scheme. Iarnród Éireann claimed that up to 1,000 pensioners had travelled on early morning trains from Counties Cork and Kerry for the protest rally, with a spokesman suggesting that the 06:30 and 07:30 trains from Cork were particularly busy. An extra train had to be commissioned from Cork at 08:20 to cope with the demand by pensioners for transport to reach Dublin in time for the demonstration. All five carriages on the 07:30 train were fully booked by the previous evening; ironically, many of the passengers were pensioners using their free travel passes also provided by the government. The pensioners also availed themselves of taxis offering free journeys to the over-70s especially for the protest. One elderly man clutched a banner heralding the invitation "Just shoot us, it would be quicker".[14]
Later that evening, a motion put forward by the opposition party Fine Gael seeking a reversal of the government's decision was defeated by 81–74 in a vote which took place in Dáil Éireann. Behan and McGrath both voted with the Opposition for the first time.[15]
Cervical cancer vaccine withdrawal
A €10million scheme to vaccinate 26,000 12-year-olds against cervical cancer by September 2009 was announced in September 2008. Minister for Health and Children Mary Harney pulled the scheme just three months later due to a withdrawal of funding as a result of the government budget. She cited that there would not be enough money to fund her scheme even though it would only cost 0.07% of the HSE's annual €14billion budget. There was a public backlash, with a "Harney must reinstate cervical cancer vaccine" protest Facebook attracting 8,000 members[16] and unions also launching a campaign to bring back the vaccines.[17] The opposition parties were silenced when they pointed out the unusual timing of the announcement, with Fine Gael accusing Harney of attempting to hide the decision which was announced on the same day as the 2008 US presidential election.[18] Labour Party leader Eamon Gilmore was ruled out of order by the Ceann Comhairle when he attempted to raise the matter in Dáil Éireann.[19] Fine Gael health spokesperson James Reilly suggested that bonuses paid to HSE management would have funded the scheme's administration.[20] County Donegal Deputy and former Fianna Fáil Minister Jim McDaid, a 20-year-old friend of Harney,[21] abstained[22][23] in a Dáil vote on 13 November in protest at the withdrawal of the vaccine, stating: "The withdrawal of a life-saving vaccine is not one that I can support" and calling it a "death sentence".[24] Just as in the medical card vote, the government defeated the Opposition.
Education cuts
University fees controversy
On the same day as the pensioners protested, the students of Ireland also protested over a proposal to reinstate university fees. On 11 August 2008, Ireland's Minister for Education and Science, Batt O'Keeffe, had indicated that fees for university students were back on the agenda in a move which contravened prior government policy.[25] University fees were abolished in 1995 by the Fine Gael-Labour government. With university presidents putting pressure on the government to approve this proposal, Brian Lenihan announced an increase in the annual college registration fee by €600 on budget day. The Union of Students in Ireland (USI) arranged a protest in response to claims that any increase in tuition fees would prevent many from attending college.[26]
Despite intense
Since then, a number of government ministers have encountered hostility from students whilst visiting campuses at
Meanwhile, at NUI Galway on the evening of 9 December 2008, the
On 13 November 2008, 3000 students were involved in a lunchtime anti-fees protest on O'Connell Street, Sligo. The students chanted slogans such as "no cutbacks, no fees, no Fianna Fáil TDs" and carried a variety of posters such as "the Batt-man is Robin students", whilst one waved a placard advertising his "Ford Fiesta for sale" followed by his mobile number.[33]
Substitute teachers controversy
Brian Lenihan encountered further controversy over his proposal to reduce the number of substitute teachers made available to schools. More protests followed as the teachers unions took to the streets in
Protestant Schooling Controversy
The minority Protestant population in the Republic were particularly incensed [1] by cuts announced by the Minister for Education to grants previously available to the 21 Protestant denomination secondary schools which breached a 40-year-old agreement reached when free secondary education was introduced in the Republic by the then Minister for Education, Donogh O'Malley.[38] Under that agreement, Protestant secondary schools which had to provide a boarding element (and therefore charge fees) to provide education for the widespread but sparse Protestant population were treated in the same manner as "free" Roman Catholic schools.[38] The Protestant community in return accepted that they could not expect the State to provide a "free" secondary school in every locality, and that they would have to pay a level of fees to educate their children.[38] It was planned that Protestant churches through their administration of the grants provided by the department would ensure that those least able to pay fees are assisted to the greatest extent possible.[38]
In October 2008, the Minister of Education grouped these Protestant schools which provided boarding for students living at a distance into the same category as Roman Catholic schools which charged fees.[38] This change meant that the schools must employ fewer teachers per child, and the schools would not receive government funding for non-teaching staff, as the free Roman Catholic schools do.[39] Opposition to these cuts is being mounted by the Church of Ireland, the Methodist Church and the Presbyterian Church as well as the schools and parents.[39][40]
Income levy difficulties
Unions warned the Irish government that its proposal to introduce an income levy of between 1% and 2% on all incomes would undermine a previously negotiated national pay agreement. In response, the government abolished the proposal and replaced it with a 3% levy on all incomes over €250,000.[41]
Social welfare controversy
Within the government budget was announced a Social Welfare Bill worth €515 million. When the Minister for Social and Family Affairs, Mary Hanafin introduced it to Dáil Éireann she was accused of "kicking the unemployed when they are down". An Opposition attempt to defeat the Bill due to "savage cuts" was again defeated, this time by 68–60. Labour Party spokesperson Róisín Shortall objected saying "it provides for savage cuts on the most vulnerable people in our society, and it deliberately targets the poor, the unemployed, children and people with disabilities". Fine Gael spokesperson Olwyn Enright objected because of the Minister's intention "to bring in amendments on Committee Stage two days after the Bill's publication", to abolish the Combat Poverty Agency.[42] Shortall also criticised a proposal to remove child benefit from 18-year-olds, saying it would affect poorer children.[43]
Farming protests
On 29 November 2008, approximately 300 farmers protested over budget cuts which affected them in
Sale of army barracks
In the build-up to the budget, Minister for Defence Willie O'Dea suggested that some army barracks in Ireland would be sold.[47] Four barracks and a military hospital located along the border with Northern Ireland were deemed suitable for closure as the British Army had withdrawn a number of years previously.[48] The closure of Rockhill Barracks and Lifford Barracks in County Donegal was expected to impact heavily on the economy of nearby Letterkenny.[49] Two other army barracks closed as of January 2009; Monaghan Barracks was the first to close on 22 January, with Connolly Barracks in Longford following suit on 29 January.[50] Barracks expenditure had previously been discussed in the Dáil in 1983[51] and six barracks were sold in 1999 by the then Minister for Defence Michael Smith.[52]
See also
References
- ^ "Ministers prepare for toughest budget in years". The Irish Times. 9 October 2008. Retrieved 7 January 2009.
- ^ "Thousands march in day of anti-Budget protests". The Irish Times. 23 December 2008. Retrieved 7 January 2009.
- ^ "COI bishops to meet Education Minister over Budget cuts". Irish Examiner. 12 November 2008. Retrieved 7 January 2009.
- ^ "O'Keeffe reassures on religious instruction". The Irish Times. 13 November 2008. Retrieved 7 January 2009.
- ^ "Budget moved to October amid economic gloom". The Irish Times. 3 September 2008. Retrieved 7 January 2009.
- ^ "Government statement on Budget 2009". The Irish Times. 3 September 2008. Retrieved 7 January 2009.
- ^ "Budget of difficult choices – Lenihan". RTÉ. 14 October 2008. Retrieved 7 January 2009.
- ^ a b "Budget main points –". Irish Independent. 14 October 2008. Archived from the original on 17 February 2013. Retrieved 28 August 2009.
- ^ "Income eligibility on medical card published". RTÉ. 15 October 2008. Retrieved 7 January 2009.
- ^ "Changes in eligibility for medical cards". RTÉ. 16 October 2008. Retrieved 7 January 2009.
- ^ "Behan resigns in protest at Budget". RTÉ. 17 October 2008. Retrieved 7 January 2009.
- ^ "McGrath threatens to withdraw over card move". RTÉ. 18 October 2008. Retrieved 7 January 2009.
- ^ "Cowen calls for more time on cards row". RTÉ. 19 October 2008. Retrieved 7 January 2009.
- ^ a b "'Maybe this is what the revolution looks like,' says onlooking TD". The Irish Times. 23 October 2008. Retrieved 7 January 2009.
- ^ "Fine Gael medical card motion defeated". RTÉ. 22 October 2008. Retrieved 7 January 2009.
- ^ "8,000 back cancer vaccine on Facebook". Irish Examiner. 24 November 2008. Archived from the original on 5 March 2009. Retrieved 7 January 2009.
- ^ "Unions bid to save cervical cancer vaccine programme". Irish Examiner. 20 November 2008. Retrieved 7 January 2009.
- ^ "Real cost of cancer vaccine cuts". The Irish Times. 8 November 2008. Retrieved 7 January 2009.
- ^ "Govt lambasted for scrapping cervical-cancer plan". Irish Examiner. 6 November 2008. Archived from the original on 20 November 2008. Retrieved 7 January 2009.
- ^ "HSE bonuses would fund vaccination programme, says Reilly". The Irish Times. 12 November 2008. Retrieved 7 January 2009.
- ^ "McDaid refuses to back Government on cancer vaccine vote". The Irish Times. 13 November 2008. Retrieved 7 January 2009.
- ^ "Debate on Cervical Cancer Vaccine". Damien Blake. 13 November 2008. Archived from the original on 23 December 2008. Retrieved 7 January 2009.
- ^ "Fianna Fáil defection as McDaid abstains on vaccination vote". The Irish Times. 13 November 2008. Retrieved 7 January 2009.
- ^ "FF claims Cowen still strong despite third defection". Irish Examiner. 14 November 2008. Archived from the original on 6 March 2009. Retrieved 7 January 2009.
- ^ "University fees for better off are back on agenda says O'Keeffe". The Irish Times. 11 August 2008. Retrieved 7 January 2009.
- ^ "Students to protest against threat of fees reintroduction". Irish Independent. 22 October 2008. Retrieved 7 January 2009.
- ^ "10,000 students take to streets". The Irish Times. 23 October 2008. Retrieved 7 January 2009.
- ^ "Three arrested in UCD as students protest about fees". The Irish Times. 21 October 2008. Retrieved 7 January 2009.
- ^ "UCD students protest over fees re-introduction". Irish Examiner. 12 November 2008. Retrieved 7 January 2009.
- ^ "Minister in confrontation with students". RTÉ. 10 December 2008. Retrieved 9 January 2009.
- ^ "Minister 'right to restrain protesting student'". BreakingNews.ie. 10 December 2008. Retrieved 9 January 2009.
- ^ "Protest forces cancellation of Ahern speech". RTÉ. 3 February 2009. Retrieved 3 February 2009.
- ^ "3,000 students protest against fees in Sligo". The Irish Times. 13 November 2008. Retrieved 7 January 2009.
- ^ "Teachers and parents to protest at education cuts". Irish Examiner. 15 November 2008. Retrieved 7 January 2009.
- ^ "Protest in Donegal over education cuts". Irish Examiner. 29 November 2008. Retrieved 7 January 2009.
- ^ "Thousands to protest education cuts". Irish Examiner. 6 December 2008. Retrieved 7 January 2009.
- ^ "Department of Education rolls back on Budget cuts". Irish Examiner. 12 December 2008. Retrieved 7 January 2009.
- ^ a b c d e Surprise flare-up at €3m cut to Protestant schools, Seán Flynn, Analysis, The Irish Times, 24 October 2009, retrieved 27 October 2009
- ^ a b Campaign to resist cuts for Protestant schools intensifies, Pamela Duncan, The Irish Times, 5 October 2009, retrieved 27 October 2009
- ^ Cuts pose a real threat to future of Protestant schools, Gordon Linney, Opinion, The Irish Times, 5 October 2009, retrieved 27 October 2009
- ^ "Govt planning 3% income levy on high earners". Irish Examiner. 17 November 2008. Retrieved 7 January 2009.
- ^ "Hanafin accused of 'kicking the unemployed when they are down'". The Irish Times. 12 November 2008. Retrieved 7 January 2009.
- ^ "Removal of child benefit criticised". The Irish Times. 12 November 2008. Retrieved 7 January 2009.
- ^ "Offaly farmers protest over Budget cuts". Irish Examiner. 29 November 2008. Retrieved 7 January 2009.
- ^ "FF councillors to quiz Taoiseach on Budget cuts". Irish Examiner. 29 November 2008. Retrieved 7 January 2009.
- ^ "IFA: We won't accept Budget cuts". Irish Examiner. 30 November 2008. Retrieved 7 January 2009.
- ^ "O'Dea says sale of Army properties a possibility". The Irish Times. 9 October 2008. Retrieved 7 January 2009.
- ^ "Four army barracks, military hospital to be closed". Irish Independent. 15 October 2008. Retrieved 9 January 2009.
- ^ "The closure of Rockhill Army Barracks". Damien Blake. 17 October 2008. Archived from the original on 24 December 2008. Retrieved 9 January 2009.
- ^ "Date set for Army barracks closures". Irish Independent. 9 January 2009. Archived from the original on 3 August 2012. Retrieved 10 January 2009.
- ^ "Dáil Éireann – Volume 345 – 17 November 1983". Dáil Éireann. 17 November 1983. Archived from the original on 7 June 2011. Retrieved 9 January 2009.
- ^ "Army barracks face closure in savage Budget cutbacks". Irish Independent. 6 October 2008. Archived from the original on 21 December 2008. Retrieved 10 January 2009.
External links
- Coverage of Lenihan's first budget[permanent dead link] on Prime Time
- Budget 2009 at The Irish Times
- Budget 2009: The Morning After[Today with Pat Kenny
- Joe Behan's resignation letter (includes photo)
- Local radio discussion on HPV vaccine withdrawal