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31/10/2008
Budget Gloom Lifts With Further U-Turn
There has been a further apparent U-turn by the Government over its flagging Budget for 2009.
Around an hour after Taoiseach Brian Cowen said tough spending cuts "could not be avoided", the news was revealed that Social Welfare Minister Mary Hanafin had caved in to pressure and announced that 16 and 17-year-olds would continue to get the disability allowance.
Shortly before her announcement, Mr Cowen had starkly warned that the country was "battling the most severe global economic and financial conditions for a century".
In a sign of the ongoing disarray within the Government, the Irish Independent understands Mr Cowen was not expecting Ms Hanafin to make the announcement right after his hardline speech to top business leaders.
There were signals from the Government of further rowbacks on agriculture cuts, with ministers indicating there was leeway for examining measures there.
Mr Cowen said the Government needed allies in dealing with the economic situation and communicating the changed circumstances to the public at large.
Business, unions and the social partners needed to stand up and inform people of the gravity of the situation.
The Taoiseach said the public had not yet grasped the seriousness of the situation before the country.
However, the climbdown on disability payments came after some families expressed concerns about the fact that they had an expectation the overall family income would increase significantly once their son or daughter reached the age of 16.
The change of heart means another €4m will have to be found in the social welfare budget.
(BMcC)
Around an hour after Taoiseach Brian Cowen said tough spending cuts "could not be avoided", the news was revealed that Social Welfare Minister Mary Hanafin had caved in to pressure and announced that 16 and 17-year-olds would continue to get the disability allowance.
Shortly before her announcement, Mr Cowen had starkly warned that the country was "battling the most severe global economic and financial conditions for a century".
In a sign of the ongoing disarray within the Government, the Irish Independent understands Mr Cowen was not expecting Ms Hanafin to make the announcement right after his hardline speech to top business leaders.
There were signals from the Government of further rowbacks on agriculture cuts, with ministers indicating there was leeway for examining measures there.
Mr Cowen said the Government needed allies in dealing with the economic situation and communicating the changed circumstances to the public at large.
Business, unions and the social partners needed to stand up and inform people of the gravity of the situation.
The Taoiseach said the public had not yet grasped the seriousness of the situation before the country.
However, the climbdown on disability payments came after some families expressed concerns about the fact that they had an expectation the overall family income would increase significantly once their son or daughter reached the age of 16.
The change of heart means another €4m will have to be found in the social welfare budget.
(BMcC)
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