There has been mixed reaction to today's Budget, which Fine Gael's Michael Noonan described as "the most socially divisive in history", but which the Minister, Charlie McCreevy, called the "largest ever social welfare package". Mr Noonan suggested that some of the taxation decisions may be unconstitutional. Labour's Derek McDowell said the Minister had failed to grasp the measure of opportunity which the country now has. However, the Tánaiste, Mary Harney, said that the Budget was radical and reforming.
The employers' organisation, IBEC, said that the changes to the tax bands were aimed at easing pressure on the labour market and said this would encourage many more people into jobs. The Congress of Trade Unions said that the changes would ensure that people in employment were not penalised at the higher rate of tax. However, the Irish National Organisation of the Unemployed said that the Budget had done far too little for the less well-off.
ISME, the organisation that represents small and medium-sized industries, said that it was disappointed at the lack of innovation in the Budget. It claimed that there was regression in the tax system by introducing an effective tax penalty on a married couple whose spouse stays at home. It added that the childcare provisions would favour large companies. The country's nursery owners also criticised the Minister for doing nothing to help parents afford childcare.
SIPTU's Des Geraghty said that it was a Budget of lost opportunity. He said that the tax package was welcome, but claimed that it would actually increase inequality. His comments were echoed by Peter Cassells of the Congress of Trade Unions who welcome the tax reforms, but maintained that more needed to be done to help the low paid before we could call our society a fair one.
The leader of the Farmers' Association, Tom Parlon, welcomed the fact that 5,000 low income farmers had been removed from the tax net. However, Mr Parlon said that farm wives working on the farm continued to be discriminated against because of Mr McCreevy's proposals. The President of the ICMSA, Pat O'Rourke, said that his association had a major difficulty with the proposal to "individualise the standard rate". He said that the ICMSA may now seek expert legal opinion on the matter.
The National Women's Council said that it was incensed by the Budget and that it failed to address women's poverty and the childcare needs of all parents.
The Carers' Association said that Budget represented one of the greatest disappointments ever for the thousands of family carers around the country who had expected justice and fair play.
There was disappointment in the film industry that the current rate of tax relief on 80% of the amount invested in movies with budgets of over £4 million was not increased to 100%, as recommended by those in the business.
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