Irish budget, 2010 on:
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The 2010 Irish Budget refers to the delivery of a
government budget by the
Government of Ireland
The Government of Ireland ( ga, Rialtas na hÉireann) is the cabinet that exercises executive authority in Ireland.
The Constitution of Ireland vests executive authority in a government which is headed by the , the head of government. The gover ...
on 9 December 2009, its third in fourteen months. It was also the third overall budget to be delivered by
Fianna Fáil
Fianna Fáil (, ; meaning 'Soldiers of Destiny' or 'Warriors of Fál'), officially Fianna Fáil – The Republican Party ( ga, audio=ga-Fianna Fáil.ogg, Fianna Fáil – An Páirtí Poblachtánach), is a conservative and Christia ...
's
Brian Lenihan as
Minister for Finance.
The 2010 Budget was described by commentators in Ireland and around the world in unusually harsh terms as €4 billion was removed from the country's national deficit. It was characterised by pay cuts for
public sector workers and cuts in
social welfare
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
. According to the
BBC #REDIRECT BBC #REDIRECT BBC
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...
, social welfare cuts had not been implemented by the country since 1924.
The cuts prompted at least one angry outburst in
Dáil Éireann, the principal chamber of the
Oireachtas (Irish parliament). Among the other initiatives unveiled in this Budget was a car scrappage scheme as well as a new carbon tax.
The post-budget debate was interrupted by a famous use of
unparliamentary language by
Green Party TD
Paul Gogarty, an example which attracted international attention.
Background
The budget for 2010 occurred in the context of a major recession, which followed the
Irish financial crisis
The post-2008 Irish economic downturn in the Republic of Ireland, coincided with a series of banking scandals, followed the 1990s and 2000s Celtic Tiger period of rapid real economic growth fuelled by foreign direct investment, a subsequent pr ...
. It also followed the difficult
2009 budget, which led to widespread protests, as well as a
supplementary emergency budget in April 2009. This meant that the 2010 budget was the third to be delivered by the Finance Minister in only fourteen months.
Budget summary
The following are the main points of Budget 2010.
* 4% cut in social welfare payments, excluding the state old age pension
* Child benefit decreased by €16 each month, although welfare-dependent families remain unchanged
* 20–21 year-olds Jobseekers' Allowance decreased to €100 per week in the event of these not having any dependents, 22–24 year-olds Jobseekers' Allowance decreased to €150 per week, the latter point also applying to anyone who does not take a job when offered
* 5–10% cut in public sector pay
*
Carbon tax
A carbon tax is a tax levied on the carbon emissions required to produce goods and services. Carbon taxes are intended to make visible the "hidden" social costs of carbon emissions, which are otherwise felt only in indirect ways like more sev ...
introduced
* High end
VAT reduced from 21.5% to 21%
* Each item on medical card prescription to cost 50c after April 2010
* Higher income tax for PAYE earners (Due to tax credits being cut)
* A new Universal Social Charge (USC) to replace the Health levy portion of PRSI
* At least €70 million towards those affected by
recent flooding and to the prevention of similar disasters in future
Excise duties on beer and cider were decreased by 12 cent, excise duties on a half-glass of spirits were decreased by 14 cent and a bottle of wine was decreased by 60 cent, with a warning from the Finance Minister that these reductions were open to being recalled if consumers did not benefit.
Due to an increase in the smuggling of tobacco into Ireland, prices of tobacco remained unaltered.
A year-long car scrappage scheme was unveiled targeting vehicles which had been in use for more than a decade, with a €1,500 reduction in vehicle registration tax relief available for those who availed of this scheme (but only "under certain conditions").
The salary of the
Taoiseach
The Taoiseach is the head of government, or prime minister, of Ireland. The office is appointed by the president of Ireland upon the nomination of Dáil Éireann (the lower house of the Oireachtas, Ireland's national legislature) and the o ...
was decreased by 20 per cent on a permanent basis.
Arts
The arts budget decreased by 6 per cent to €166 million from the previous year's €178 million.
received €4.083 million and the
Irish Film Board
Fís Éireann / Screen Ireland, formerly known as Bord Scannán na hÉireann / the Irish Film Board, is the Republic of Ireland's state development agency for the Irish film, television and animation industry. It provides funds for the developm ...
received €19.31 million, both the same as figures from 2007.
The
Arts Council received €69.15 million, a decrease of 6 per cent.
Section 481's tax relief for film and television production was not affected.
The
Zoological Society of Ireland
Zoology ()The pronunciation of zoology as is usually regarded as nonstandard, though it is not uncommon. is the branch of biology that studies the animal kingdom, including the structure, embryology, evolution, classification, habits, and dis ...
's grant of €3 million for funding
Dublin Zoo
Dublin Zoo ( ga, Zú Bhaile Átha Cliath), in Phoenix Park, Dublin, is a zoo in Ireland, and one of Dublin's most popular attractions. Established and designed in 1830 by Decimus Burton, it opened the following year. Today it focuses on conserv ...
remained the same.
However, the
National Gallery of Ireland
The National Gallery of Ireland ( ga, Gailearaí Náisiúnta na hÉireann) houses the national collection of Irish and European art. It is located in the centre of Dublin with one entrance on Merrion Square, beside Leinster House, and another on ...
's grant was decreased by 7 per cent leaving it with an annual total of €10.17 million.
Sport
The Government allocated €115 million for sport, a decrease from the previous year's €127 million.
The
Irish Sports Council received funding of €49.7 million, a decrease of 4 per cent.
€59.2 million was allocated to horse and greyhound racing, a decrease of 13 per cent.
The Sports Capital Programme received €48 million, down from €56 million the previous year.
Aviva Stadium
Aviva Stadium (also known as Lansdowne Road) is a sports stadium located in Dublin, Ireland, with a capacity for 51,700 spectators (all seated). It is built on the site of the former Lansdowne Road Stadium, which was demolished in 2007, and ...
development funding will increase from €1.5 million to €4.5 million. Funding for Abbotstown's National Sports Campus increased by 20 per cent.
The
National Aquatic Centre received the rest.
Tourism
The Government allocated more than €155 million for tourism, an increase of 2 per cent from the previous year's Budget.
€22 million of this was dedicated to tourist attractions.
"Imaginative initiatives", including rail discounts for senior visiting citizens, were announced.
Reaction
Taoiseach
The Taoiseach is the head of government, or prime minister, of Ireland. The office is appointed by the president of Ireland upon the nomination of Dáil Éireann (the lower house of the Oireachtas, Ireland's national legislature) and the o ...
Brian Cowen
Brian Bernard Cowen (born 10 January 1960) is an Irish former politician who served as Taoiseach and Leader of Fianna Fáil from 2008 to 2011.
Cowen was elected to Dáil Éireann in 1984, for the constituency of Laois–Offaly and served in a ...
said the Government would "do whatever was necessary to stabilise the deficit" and that "a job needed to be done", whilst maintaining that the Budget was "well received".
Fine Gael
Fine Gael (, ; English: "Family (or Tribe) of the Irish") is a liberal-conservative and Christian-democratic political party in Ireland. Fine Gael is currently the third-largest party in the Republic of Ireland in terms of members of Dáil ...
's
Richard Bruton
Richard Bruton (born 15 March 1953) is an Irish Fine Gael politician who has served as a Teachta Dála (TD) for Dublin Bay North since 2016, and previously from 1982 to 2016 for the Dublin North-Central constituency. He is the Chairman of th ...
responded to Brian Lenihan's claim that "the worst is over" by comparing the statement to former
U.S. President George W. Bush declaring "mission accomplished" on the
Iraq War
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, partof = the Iraq conflict and the War on terror
, image ...
in 2003.
His colleague
Alan Shatter accused the Government of buying off children with alcohol: "Forget the food and milk — let them drink beer", describing it as being from "the
Marie Antoinette school of politics" and asking "which comedian was employed to author this bizarre document".
The
Labour Party's
Joan Burton described it as "a sort of ''
Top Gear
Top Gear may refer to:
* "Top gear", the highest gear available in a vehicle's manual transmission
Television
* ''Top Gear'' (1977 TV series), a British motoring magazine programme
* ''Top Gear'' (2002 TV series), a relaunched version of the or ...
'' lads Budget" with cheaper alcohol and cars being made available.
Sinn Féin
Sinn Féin ( , ; en, " eOurselves") is an Irish republican and democratic socialist political party active throughout both the Republic of Ireland and Northern Ireland.
The original Sinn Féin organisation was founded in 1905 by Arthur G ...
's leader in the Dáil
Caoimhghín Ó Caoláin described anyone who had constructed Budget 2010 as "economically illiterate".
His colleague
Arthur Morgan bemoaned how the Budget benefited "the corrupt banker".
General Secretary David Begg was "shocked", claiming the Budget would cause Ireland's economy to fall further into recession.
IBEC
Ibec is an Irish business representative lobbying organisation and human resources services provider According to the Standards in Public Office Commission register it is the organisation that is doing "the most lobbying" in Ireland.
Ibec is ...
Director General Danny McCoy described the Budget as "a turning point" and one which would place Ireland "on a sustainable path".
The
Irish Nurses Organisation described the public servant pay decrease as "grossly unfair, short-sighted, damaging and provocative" and would lead to "grave hardship".
The
Irish National Teachers' Organisation
The Irish National Teachers' Organisation (INTO) ( ga, Cumann Múinteoirí Éireann), founded in 1868, is the oldest and largest teachers' trade union in Ireland. It represents teachers at primary level in the Republic of Ireland, and at prima ...
said those involved in the public sector would "pay for Government's disastrous handling of the economy" and that "hardworking public servants and their families had been squeezed yet again to pay the price of the economic crisis".
said the Budget was the same as "sacrificing long-term public service reform for short-term political expediency".
The Association of Garda Sergeants and Inspectors said the Budget was an "attack on its members".
The Construction Industry Federation said the loss of almost €1 billion was "a blow to jobs in its sector".
The Irish Hotels Federation was grateful for the Government's "strong and decisive action".
The Irish Hospital Consultants Association later revealed its willingness to agree 15% pay cut announced by the Finance Minister for its members in his Budget 2010.
The National Campaign for the Arts expressed relief and pleasure that it had not been affected very much by the Budget. Youth Work Ireland described the targeting of young people as "pure cynicism
..a cynical move when contrasted with the 30,000 young people turned away from education courses last October".
Drinks Industry Group of Ireland Chairman Kieran Tobin said reductions on the cost of alcohol would be "a great relief" and would "repatriate some of the revenue currently being lost to cross-border trade".
Anti-smoking lobbyists ASH Ireland criticised the lack of increase in the price of tobacco.
described the carbon tax being implemented as "an important piece of the jigsaw in tackling climate change".
Ireland CEO Jim Clarken spoke of being "extremely disappointed that the Government have piled further cuts on the massive 24% cut applied earlier this year" and accused the Irish government having "yet again, broken a promise to the world's poor".
Political Correspondent for ''
The Irish Times
''The Irish Times'' is an Irish daily broadsheet newspaper and online digital publication. It launched on 29 March 1859. The editor is Ruadhán Mac Cormaic. It is published every day except Sundays. ''The Irish Times'' is considered a newspaper ...
''
Harry McGee
Harry McGee is the political correspondent with ''The Irish Times''. He has previously worked for several publications, including being political editor of the ''Irish Examiner'', as well as jobs with the ''Sunday Tribune'', the '' Sunday Press ...
dubbed it "the most austere Budget in the history of the State".
The ''
Irish Examiner'' said it "can only be described as one of the toughest Budgets in the history of the State". The
BBC #REDIRECT BBC #REDIRECT BBC
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...
called it "one of the most severe budgets in the Republic's history".