SIPTU representatives have expressed serious and deep concerns following the publication of the Government’s Summer Economic Statement, warning the significantly reduced fiscal package will squeeze public services, erode members’ living standards and leave the public finances dangerously exposed.
The Union highlighted despite persistent inflation, a growing population, and ageing demographics, the overall fiscal package is substantially lower than last year’s, signalling a potential suppression of public spending when resources are needed most.
SIPTU Deputy General Secretary for the Private Sector, Greg Ennis, said: “The fiscal package outlined in today’s Summer Economic Statement is substantially and shockingly lower than last year’s, despite the clear realities of rising inflation, population growth, and ageing demographics. This suggests the Government intends to suppress public spending at a time when our public services and social protection systems desperately need resources just to stand still.
“The reality is the spending package will barely cover baseline demographic and inflationary costs. It leaves virtually no room for substantial investment in childcare, a meaningful cost-of-living package to reduce energy costs this winter, funding for demand-led schemes like pensions, or make any serious inroads to end in-work poverty. We are looking at a fiscal squeeze that will leave many working people worse off.”
Incoming SIPTU Deputy General Secretary for the Public Service, Adrian Kane, said: “The Government must make good on its previous mistake of freezing tax credits and tax bands. To protect workers’ living standards against persistent inflation, double indexation of tax credits and bands for both this year and next as outlined, by the Irish Congress of Trade Unions, is entirely non-negotiable. Protecting wages from inflation is the very least our members expect, even if doing so takes up the lion’s share of the €1.5 billion tax package.
“It also appears that the Government is relying ever more heavily on windfall corporate tax receipts from a handful of US multinationals to plug structural gaps. This leaves our public finances at serious future risk, a vulnerability that is inexplicably ignored in today’s Statement. We believe that in the round, this package will squeeze essential public services to breaking point and do little to address the ongoing erosion of workers’ living standards.”