A harsh budget - GWU

The "harsh budget" will mean a strong financial blow for workers who are already burdened with the new water and electricity tariffs, according to the general secretary of the General Workers' Union, Tony Zarb.

"Taken as a whole, the budget does not contain any measures to reduce the burden imposed by the water and electricity tariffs on workers and their families and on pensioners," he said.

The GWU national council will be meeting today to discuss and analyse the budget and issue a more comprehensive reaction to it.

The €4.08 weekly cost of living adjustment (that is to be added to last year's €2.33 advance) failed to cover the expenses brought about by the tariffs and the increase in fuel, let alone the hike in cost of living, Mr Zarb said.

He added that the measures announced would only drive medium-income families further into the ground, irrespective of the "cosmetic" changes to the income tax bands that were widened by amounts ranging between €300 and €700.

The situation was made worse with the introduction of the fuel tax to cover other energy-related investment.

In a statement released last night, the union stressed that most of the proposals made by the GWU during the pre-budget consultation had been ignored. Only two had been taken up: the tax breaks for mothers who returned to work and the incentives for alternative energy.

"These energy incentives were positive but only a minority would benefit," Mr Zarb said.