James Lawless – View from the Tracks

Looks like the Minister has managed another crowd pleaser under challenging economic circumstances in his hot off the press 2008 budget..

Something for everyone and enough to go around – generous social welfare increases, increased income tax reliefs, ploughing ahead with capital spending, a review of stamp duty that simplifies and makes the market more equitable, lower earners taken out of tax net, middle earners pitched at standard rate, environmental reforms to VRT and motor taxes and a raft of spending on everything from farm distribution to public transport to fisheries and decomissioning schemes.

Value for money in public services was mentioned more than once in the introduction although little hints emerged later on the detail. Transport gets an extra €2.7BN including the commencement of the Navan rail line and LUAS extensions, numerous bypass and motorway enhancements including M50 upgrade also detailed. Stamp duty reform will amount to a de facto reduction in the tax whilst increased mortgage reliefs will ease the houes buyers burden and presumably help steady the market which will be welcome to all. Liked his comment about arriving at a “better balance between buyer and seller” in other words punters were being treated to daylight robbery not so long ago.

Education, Health and Welfare all receiving increases and together comprising over 80% of current spending, and capital spending there too with almost €100M extra for the schools building program and €700M extra for health capital expenditure.

Another highlight and very welcome is the move to promote electronic finance over the paper variety by reducing duty on laser/credit cards and redressing it by increasing duty on cheques which makes perfect sense and begins the phasing out of what was a inadvisable charge in the first place.

Overall whatever largesse was available the Minister chose to distribute to the most vulnerable through generous welfare increases, pensions, child benefits, childcare supplements, carers allowances, whilst income tax measures are targeted again at low earners and those in the middle bands although all will benefit.

“Modest borrowing and ambitious investment” will ensure no let up in capital spending whilst maintaining a sensible debt ratio.

Once again Fianna Fáil has demonstrated that social justice is a core value whilst displaying economic prudence and ensuring future prosperity.