Unjust Government Plan is bad for the economy, bad for society, bad for social cohesion; it is good for rich and powerful e.g. bond-holders and corporate sector

Social Justice Ireland has issued the following initial statement on the Government’s National Plan for Recovery 2011-2014. 

1. The National Recovery Plan 2011-2014 is bad for the economy, bad for society and bad for social cohesion.
2. The weak, the sick and the working poor will take an unfair proportion of the hit as Ireland struggles to recover from the reckless actions of greedy bankers, incompetent regulators and an inept government. 
3. The reduction in the welfare budget over the four years (€3bn) is equivalent to a drop of €40 a week for a single person (from €196 a week to €156) between 2011 and 2014.  If old-age pensioners are to be excluded and the reduction is spread across all other payments it will mean the equivalent of a reduction of €62 a week for single people i.e. down from €196 a week in 2010 to €134 in 2014. This would represent a cut of 31% in the income of Ireland’s weak, sick, vulnerable and disabled people.
4. These proposals are outrageous and unjust. Most of those receiving welfare payments are in poverty already. Reducing their incomes in this way is going to push them into incredibly deeper poverty. 
5. The Plan is good for the rich and strong such as bond-holders and corporate sector who are not being asked to shoulder any part of the adjustment required to secure Ireland’s viability into the future. It is important to remember that much of Ireland’s current problems were caused by elements within the corporate sector. Both the senior bond-holders and the corporate sector should make a contribution towards rescuing Ireland from its current very difficult situation.
6. The Plan’s distribution of the adjustment (€10bn in cuts, €5bn in tax increases) is unjust and unfair. It should be the other way around. 
7. Ireland’s total tax-take is one of the lowest in the European Union. It is possible to raise Ireland’s total tax-take by €10bn and still remain a low-tax country. Instead Government proposes to target the poor, the sick and the low-paid while protecting the rich and the strong. This approach is disgraceful, unjust and unfair.
8. The working poor are also being treated unjustly in this Plan. 39% of all households at risk of poverty live in households headed by a person WITH a job. These are the working poor. The changes in taxation will mean they will pay up to €12 a week in tax in addition to the tax they were paying already. 
9. The reduction in the minimum wage means that people who are the lowest-paid in Irish society are facing a reduction of €40 a week in their salary. This is unjust and unnecessary.
10. The Government’s current approach to fiscal adjustment will seriously damage sick, poor and vulnerable people. While Government has stated it will support these groups, the initiatives identified in its National Recovery Plan mean that Ireland’s weakest groups will take the major part of the ‘hit’ for the reckless actions of the greedy, the incompetent, and the inept. Those who had no hand, act or part in creating Ireland’s current grave problems are being targeted to take an unjust and unfair proportion of the adjustment required.