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Responses to Stormont draft Budget… December 16, 2010

Posted by WorldbyStorm in Economy, Irish Politics, Northern Ireland, The Left.
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Any responses from political parties/others to the draft Budget agreed at Stormont can go here. All welcome.

We start with éirígí who argue that:

If the political parties at Stormont, particularly those who claim to be left-wing, are genuinely opposed to the cuts being demanded by the British government, they should refuse to administer them and join the rest of us on the streets in a campaign of resistance.

“A failure to let the British government do its own dirty work and, worse, deciding where best to implement the cuts can only lead working people to conclude that what has happened over the last number of weeks at Stormont has been nothing but meaningless posturing.

“Despite the spin being put on Stormont’s draft budget, it is clear that the Six County executive has totally failed to challenge the British government assault on working class communities and on the most vulnerable in our society.

Send more and we’ll link to them in this post.

Here is the response from the Socialist Party:

Assembly Parties agree on CUTS CUTS CUTS

Join the Socialist Opposition

The cuts are coming – and the parties in the Assembly are not standing in their way – they have agreed that they will implement them, not oppose them. One after another, all the parties in the Assembly Executive are queueing up to identify where cuts can be made – cut education spending, privatise the Housing Executive, close hospitals, sell off Belfast Harbour, increase household rates for ordinary workers, cut civil service workers pay, introduce water charges…

None of the parties are prepared to stand up to the cuts agenda and demand that those who are responsible for the economic crisis – the wealthy stock market speculators, the billionaire bankers, bosses and capitalists – pay for their crisis. It is workers who are taking all the pain. 230 workers at the Bank of Ireland in the North are to be sacked yet Bank of Ireland chief executive Brian Goggin was paid over €3million last year, after receiving a massive bail-out!

The scale of the cuts will destroy at least 50,000 jobs in Northern Ireland – in both the public and private sector. £1billion will be taken out of the economy in the form of cuts to benefits alone. The cuts will hit the poorest households the most, but the richest are not feeling anything. All the parties in the Assembly are in favour of cutting tax on big business and are prepared to make extra cuts to public services in order to do so. There has been no hint from any of the politicians of making big business pay their rates in full. Big companies in Northern Ireland only pay one-third of what they should in rates. Workers are subsidising big business millions in unpaid rates, yet if we cannot find the money to pay our rates we are thrown in front of a judge!

Full Workers’ Party response to the draft budget available here

Under the terms of the Stormont Budget and that of the Con-Dems, at the very least there will be massive cuts in education, Belfast Harbour will be sold off, hospitals will close and welfare provision will become more draconian. As noted in the Irish News (16th December), the Budget is predicated on Stormont earning £540 million from the sale of public assets and this figure relies on a wildly optimistic expectation of future property prices. When this sell-off doesn’t work, the Sinn Fein/DUP Stormont Coalition will doubtlessly introduce even greater austerity cutbacks and levies.

But even as it stands, for thousands of workers this Budget will mean disaster. The pay freeze for the 12,000 civil servants under Stormont control and who earn over £21,000 is a clear attack on working class civil servants and their families and localities. In the UK as a whole 4,000 public sector managers get paid £117,000 a year or more. A pay freeze for this group of people might mean a few belt-tightening exercises but will hardly prove disastrous. For those workers earning in and around £21,000 a pay freeze will mean that they and their families will go without basic goods and services. More generally, the 29% of our people who earn less than £300 per week will be disastrously affected by cutbacks in public sector provision, while for the 25% earning £800 and above cutbacks will hardly affect them at all. Moreover, as unemployment in the public sector and related sectors increases, the number of unemployed workers will increase by the thousands. This is the class reality of the society in which these thatcherite policies will be put in place.

Sinn Fein must take special blame for agreeing on this budget. For all its talk of the necessity of spending our way out of recession, in this Draft Budget Sinn Fein has totally accepted the neo-liberal Con-Dem agenda. The Budget they signed up to affirms that “the challenge for the Northern Ireland Executive […] is to both rebuild the economy in the aftermath of the recession and to rebalance it towards the private sector in the context of the constrained public expenditure position” (2.30) and Chapter 3 of the document sets out the background to the UK deficit in terms that entirely reflect the Con-Dem austerity agenda, with its talk of “reducing welfare costs and wasteful public spending” (3.6) . Following the public consultation “a draft Economic Strategy will be developed and this will also reflect the outcome of the UK Coalition Government Paper on rebalancing the Northern Ireland economy” (2.33). The Workers’ Party, along with the Trades Unions and progressive economists believe that “rebalancing” the economy means a further move away from public provision and the public good, a further growth in inequality as the rich pocket more, and a further attack on the working class. All this depends on the people of Northern Ireland accepting the austerity agenda. Recent protests and actions have shown that many thousands of people will not tolerate it.

Comments»

1. joan - December 16, 2010

well come on all you crypto-sticks, rush to the defence of your friends in sinn fein nua!!!!

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Garibaldy - December 17, 2010

Thanks for that Joan. Very constructive contribution.

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Budapestkick - December 17, 2010

‘Crypto-Sticks’

Eoghan Harris has been deep undercover since he left. He’ll reveal his true allegiances only after the revolution has succeeded.

Incidentally, Queen Elizabeth has the Inglis Bakery poster of Joe McCann hidden in her attic. It’s always the ones you least suspect. Group F have been mighty effective.

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Riverdale - December 17, 2010

Very on the ball: you must be well clued into Irish politics (from a distance). It must break your heart that Sinn Féin are going to win 15 plus seats in the Dáil and that nothing you say makes a blind bit of difference about that. Jog on.

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2. Budapestkick - December 17, 2010

http://www.socialistpartyni.net/campaigns/fight-the-cuts/483-assembly-parties-agree-on-cuts-cuts-cuts

Assembly Parties agree on CUTS CUTS CUTS

Join the Socialist Opposition

The cuts are coming – and the parties in the Assembly are not standing in their way – they have agreed that they will implement them, not oppose them. One after another, all the parties in the Assembly Executive are queueing up to identify where cuts can be made – cut education spending, privatise the Housing Executive, close hospitals, sell off Belfast Harbour, increase household rates for ordinary workers, cut civil service workers pay, introduce water charges…

None of the parties are prepared to stand up to the cuts agenda and demand that those who are responsible for the economic crisis – the wealthy stock market speculators, the billionaire bankers, bosses and capitalists – pay for their crisis. It is workers who are taking all the pain. 230 workers at the Bank of Ireland in the North are to be sacked yet Bank of Ireland chief executive Brian Goggin was paid over €3million last year, after receiving a massive bail-out!

The scale of the cuts will destroy at least 50,000 jobs in Northern Ireland – in both the public and private sector. £1billion will be taken out of the economy in the form of cuts to benefits alone. The cuts will hit the poorest households the most, but the richest are not feeling anything. All the parties in the Assembly are in favour of cutting tax on big business and are prepared to make extra cuts to public services in order to do so. There has been no hint from any of the politicians of making big business pay their rates in full. Big companies in Northern Ireland only pay one-third of what they should in rates. Workers are subsidising big business millions in unpaid rates, yet if we cannot find the money to pay our rates we are thrown in front of a judge!

For a one-day Public Sector Strike

The trade unions must set a date and build for a one-day public sector strike as a first step in building mass resistance to ALL cuts. The cuts can be stopped if workers were fully mobilised in general strike action. Medical secretaries recently forced management in the Belfast Health Trust to retreat from enforcing redundancies and cutting pay, by organising militant protests and voting overwhelmingly for strike action. Management have not yet fully withdrawn all their attacks, but it is a small example of how workers taking action can make a difference. Motions calling on the trade unions to co-ordinate ballots for a one-day public sector strike should be passed in every union branch representing public sector workers.

We need our own political voice

Workers and the unemployed are facing huge cuts from the parties in the Assembly. Threats to cut civil service workers pay should dash any doubts anybody might have had that the parties in the Assembly represent us. There is no party in the Assembly or on local councils fighting the cuts and speaking up for the interests of workers – Catholic and Protestant. It is intolerable that the leaders of the trade unions – which unite more than 220,000 members – continue to stand back and leave right-wing and sectarian parties a free run in elections. The trade union leaders must take steps to support the formation of a new mass political party which can unite the working class against the cuts agenda of all the parties in the Assembly. The Socialist Party will be standing candidates next May in the local and Assembly elections to put a socialist alternative to the shared right-wing policies of the Assembly parties and will strive to develop a political opposition to the cuts.

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WorldbyStorm - December 17, 2010

Thanks a million Budapestkick, I’ll put that into the main body of the text.

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3. Mick Hall - December 17, 2010

Instead of foot stamping, it would have been nice to hear an argument from the SF comrades as to why they feel the need to implement these cuts in the north.

This is not only a question for members of SF, but also progressive councillors across Ireland and the UK. So far we have hardly heard a squeak of opposition from within town halls, true many are doing their utmost to minimise the damage, but the problem here is the scale of the cuts redundancies, etc are unprecedented.

It has become clear the scale of the cuts are ideological not necessity and it is not an ideology the left should give house room to.

So SF do need to answer questions over the norths budget etc, not leas because when they go to the southern electorate next year, they will be arguing against the cuts. Which will look a little thin if across the border in the six counties they endorsed cuts.

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4. WJ - December 17, 2010

I thought that this part of the eirigi response was informative.

“Asset-stripping is a main plank of the Stormont executive’s budget, which opens the door to the future privatisation of public services.

“This budget will come as absolutely no surprise to anyone who has observed the impotence of the Six County executive since its establishment.

“In their Programme for Government 2008-2011, all the Stormont parties agreed to implement £1.65 billion [€2 billion] of cuts in public expenditure. That was followed in March of this year by the announcement of another £360 million [€420 million], bringing the total cuts which Stormont had agreed to £2 billion [€2.4 billion], even before the impact of this present budget, with its additional £4 billion of cuts, takes effect.

“Despite an economic recession affecting greater numbers of people than officially admitted, the Stormont parties continue to collude in concealing both their own ineptitude and the full extent of that crisis from the population.

“On the day that this budget was published, unemployment figures in the Six Counties again rose to 58,500 people. Not included in that official figure are another 40-50,000 people who are also seeking work but are not entitled to Job Seekers Allowance. That means that 100,000 are currently seeking jobs in the Six Counties – a real but unpalatable fact that the Stormont parties will not even publicly admit. In that context, Stormont’s aim to create 4-5,000 jobs barely even addresses the problem.”

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5. Budapestkick - December 18, 2010
6. Justin - December 18, 2010

Workers’ Party draft budget response at
http://www.workerspartyireland.net/id557.html

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Garibaldy - December 18, 2010

Thanks Justin. Have added a link and some of the text to the main post.

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7. RepublicanSocialist1798 - December 18, 2010

In fairness to them they managed to find an extra 1.6 billion through revenue raising to supplement the block grant. Sammy “expel the catholics” Wilson and a lot of other unionists scoffed at the idea when it was first proposed. They’re curtailing on the use of external consultants (which certainly in the 26 counties is little more than political patronage for party political supporters – civil servants could do the job just as well) as well as culling unnecessary quango’s. Water charges are deferred for the next four years. They aren’t touching health – they’re actually increasing it by 300 million. I’m going to wait until I see the details of that 20 million hardship fund before I pass comment on it. They’ve brought in a plastic bag levy finally.

There are aspects of the budget which are completely unpalatable such as the education cuts which I can’t fathom. It’s 67 million. They could’ve easily used the money going to health to defray the expenses there. Child benefit should’ve been allowed to rise with inflation (i’d like to know if they considered the possibility that inflation could rise). Then there’s that National Insurance exemption for new businesses for the first ten workers – a reduction rather than a full exemption would’ve made much more sense.

Curate’s egg budget is a fair assessment.

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Blissett - December 19, 2010

id largely agree with the above, but to be honest the detail is still very very thin. Im inclined to withold judgement until I see more. Its not so much the 67b as what that 67b might represent. We shall see, but on the whole looks like a half decent fist given the constraints.

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8. Ghandi - December 20, 2010

Workers Party Response

Sinn Féin & DUP conspire to implement vicious cutbacks

The Draft Budget which the Stormont Coalition parties have published for consultation will remove between £4-5bn from public expenditure in Northern Ireland over the four year period commencing 1 April 2011. If enacted, this budget will prove disastrous for the majority of people in Northern Ireland.

It is difficult to respond in detail to its provisions because – typical of the way that Stormont works – the details will be laid out at some point in the future by each department. The Workers’ Party will publish a detailed response to this Budget when it is in a position to do so. However, even at this stage we can say that it will not work and it will increase the social and economic hardship of the working class in Northern Ireland.

Under the terms of the Stormont Budget and that of the Con-Dems, at the very least there will be massive cuts in education, Belfast Harbour will be sold off, hospitals will close and welfare provision will become more draconian. As noted in the Irish News (16th December), the Budget is predicated on Stormont earning £540 million from the sale of public assets and this figure relies on a wildly optimistic expectation of future property prices. When this sell-off doesn’t work, the Sinn Fein/DUP Stormont Coalition will doubtlessly introduce even greater austerity cutbacks and levies.

But even as it stands, for thousands of workers this Budget will mean disaster. The pay freeze for the 12,000 civil servants under Stormont control and who earn over £21,000 is a clear attack on working class civil servants and their families and localities. In the UK as a whole 4,000 public sector managers get paid £117,000 a year or more. A pay freeze for this group of people might mean a few belt-tightening exercises but will hardly prove disastrous. For those workers earning in and around £21,000 a pay freeze will mean that they and their families will go without basic goods and services. More generally, the 29% of our people who earn less than £300 per week will be disastrously affected by cutbacks in public sector provision, while for the 25% earning £800 and above cutbacks will hardly affect them at all. Moreover, as unemployment in the public sector and related sectors increases, the number of unemployed workers will increase by the thousands. This is the class reality of the society in which these thatcherite policies will be put in place.

Sinn Fein must take special blame for agreeing on this budget. For all its talk of the necessity of spending our way out of recession, in this Draft Budget Sinn Fein has totally accepted the neo-liberal Con-Dem agenda. The Budget they signed up to affirms that “the challenge for the Northern Ireland Executive […] is to both rebuild the economy in the aftermath of the recession and to rebalance it towards the private sector in the context of the constrained public expenditure position” (2.30) and Chapter 3 of the document sets out the background to the UK deficit in terms that entirely reflect the Con-Dem austerity agenda, with its talk of “reducing welfare costs and wasteful public spending” (3.6) . Following the public consultation “a draft Economic Strategy will be developed and this will also reflect the outcome of the UK Coalition Government Paper on rebalancing the Northern Ireland economy” (2.33). The Workers’ Party, along with the Trades Unions and progressive economists believe that “rebalancing” the economy means a further move away from public provision and the public good, a further growth in inequality as the rich pocket more, and a further attack on the working class. All this depends on the people of Northern Ireland accepting the austerity agenda. Recent protests and actions have shown that many thousands of people will not tolerate it.

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