Tuesday, December 07, 2010

Comparison between Labour and FF/GP/IND Budget

FF Budget 2011

What Labour says

Headline figures

€6bn adjustment

€6bn risks killing off the economy: €4.5bn is as much as country can handle.

50:50 cuts and revenue raising, incl. €960m in current spending cuts.


Tax credits (personal & employee) reduced by €360

Standard rate band cut by €3,600

Universal Charge applied to people on low pay

No mention of tax exiles

48% on single incomes over €100k

Reduce personal tax credit by €250

€100m to be collected annually from tax exiles


Reform of Business Expansion Scheme.

Extension employers’ PRSI holiday to end 2011

10,000 internships; 5000 Community Employment places

€500m jobs fund to be re-invested in a jobs strategy & 60,000 education & training places/internships for unemployed people

Extend employers’ PRSI holiday to 18 months for new employees who have been on the dole for 6mths+

Competitiveness measures like a 3 yr wage freeze; control of professional fees; reform of commercial leases

Public service pay/numbers

Salary cap of €250k

All new entrants to take 10% pay cut

Reduction of 7,000 employees this year.

€400m reduction in pay bill should be minimum target for 2011.

Scope for reduction of 15-20,000 employees between 2011-2014; would include voluntary redundancies.

Salary cap of 190k, incl. heads of semi-states

FF budget 2011

What Labour says


Cut all welfare rates (except state pension) by €8 per week

No increase in qualified child allowance.

€10 Child Benefit cut for 1st two children; €20 for 3rd child; €10 for 4th child+

Tax credit for an incapacitated child cut by €360; Home carer tax credit cut by €90

No change in headline welfare rates.

No cut in child benefit.

€100m target for fraud reduction.

€65m in reform of rent supplement.

€50m in misc. reforms


Age exemption limit for married pensioners cut by €4,000

New passport fees for pensioners


€500 increase in student registration charge for 1st child; €200 charge for PLC courses.

4% reduction in student grant; restriction of eligibility.

School transport at 2nd level to go up to €350, €50 charge for primary pupils.

5% cut in school budgets – 200 pupil school loses €2,000 for day-to-day bills.

€18m cut in National Educational Psychological Service; psychologist numbers frozen.

‘4 Year Plan’ includes cutting 1,200 teaching posts, the majority dealing with disadvantaged children.

Education budget protected.

No increase in class sizes

No increase in 3rd level charge; no €200 charge for post-Leaving Cert courses.

€31m savings through admin savings; integrating senior traveller training; & reducing allocation to teacher training colleges.

FF budget 2011

What Labour says


€116m saved through limited reform

Earmarked €400m saving through far-reaching reform, incl.

- Capping level of tax relief on pension contributions

- Reducing max tax-free lump sum

- Reducing max pension fund

- Including pension tax relief in the calculation of minimum effective tax rate of tax


€727m cut in total

€43m cut in childcare and youth services.

Cuts in professional fees; what the state pays for drugs similar to ours

€391.8m savings that do not hit frontline services.

Incl. 8% cut in fees for doctors, dentists, pharmacists; €200m savings through better use of generic drugs.


Cut Taoiseach by €14k

Cut Ministers by €10k

Cut Taoiseach by €38k

Cut Ministers by €32.5k

Total saving from Oireachtas of €5m