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To: Branch/Section Officers/Nurse/Midwife Reps/Hospital Committees
- ICTU Campaign - Plan for National Recovery
- EMERGENCY BUDGET - 2009
ATTENTION ALL MEMBERS
Dear Colleague
As you will undoubtedly know the government presented its emergency budget, for 2009, on last Tuesday, 7th April 2009.
Members who wish to access the details of what was contained in the budget can click on to the this link: Supplementary Budget April 2009 Documents , where all of the published papers, from the Department of Finance, can be found.
In the context of the public service, and in particular the health service, key issues announced in the budget included the following:
Levy on Public Service Pensions
The government announced a small reduction in the levy, for public servants earning €60,000 or less per annum, which amounts to an approximate reduction of €500 per annum.
Details of the revised contributions, arising from the levy, can also be found under the pension calculator icon on the INO website.
Early Retirement Scheme
The government also announced, in the budget, an incentivised early retirement scheme, for all public servants, which essentially involves the following:
- it will be available to staff over 50 years of age;
- they will be allowed to retire, immediately, without any actuarial reduction in their pension entitlement e.g. an individual with 25 years service could retire immediately and receive a pension based upon 25 years service;
- the lump sum payable, to any individual under this scheme, would be made in two instalments;
• 10% immediately;
• the remaining 90% at their normal retirement date (60 or 65) without any tax being paid; and
- the scheme will become operational from 1 May 2009 and will be reviewed at the end of the year.
It is expected that the HSE will issue a circular on this revised scheme in the next two weeks.
Personal Taxation
As we all know the government announced very significant increases in the level of personal taxation, on all workers, which included the effective doubling of the special income levy and the lowering of the thresholds at which they apply.
Obviously the impact of these changes vary, from individual to individual, so members are advised to check the background papers, available on our website, in order to calculate the reduction in take home arising from the budget measures.
Funding of the Public Health Service
Also in the budget the government announced that it was allocating some additional monies, to the public health service, to address additional costs pressures which had arisen in the first quarter of the year. Specifically the government indicated the following:
- reduction in income from the health levy - the government indicated that it was allocating an additional sum of €160 million, to the HSE, to, at least, partially address the reduction in income arising from the fall off in the health levy payments due to increased unemployment; and
- cost of additional medical cards - the government committed itself to make a supplementary allocation, to the HSE, of up to €100 million to cover the cost of additional medical cards which again will be issued as a result of the overall economic downturn.
In a separate news update, also issuing today (Thursday, 9th April 2009), we are providing a full update in relation to the revised situation, within our public health service, and all members are asked to appraise themselves of same either through this further circular or on our website.
Summary
As previously indicated the social partnership talks, recently recommenced, have been adjourned, until after Easter, to allow the parties asses the implications, of the recent budget, and the progress on critical issues.
The Executive Council of the Irish Congress of Trade Unions (ICTU) is due to meet next Wednesday, 15th April 2009, to review the recent budget and to consider, and determine, its next moves in its continuing campaign for a national recovery based upon its ten point plan.
As you will have seen, from initial media coverage, the INO’s, and indeed most unions, initial response to the budget can be summarised as follows:
- it is extremely severe upon workers with very ordinary incomes;
- the government has done little to maintain and protect existing employment levels;
- the cuts in social welfare and childhood supports will hurt the most vulnerable in our society; and
- the continued efforts of government to commit billions of Euro to bail out the banks, while asking ordinary workers to accept a significant drop in their living standards, continues to suggest a very unequal approach with regard to who caused this recession in the first place.
Thank you for your attention to this note and I would ask, as always, that you give it wide prominence in your workplace and encourage all members to appraise themselves of the foregoing.
Notwithstanding all of our current difficulties may I take this opportunity to wish you, and your families a very happy and enjoyable Easter weekend.
With kind regards and best wishes.
Yours sincerely
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LIAM DORAN
General Secretary
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