GWU says Budget insensitive

Government induced costs must be frozen and the cost of living allowance awarded twice a year, the General Workers’ Union said yesterday in its reaction to Budget 2011.

The union said the Budget was insensitive to people’s needs and did not alleviate the financial burden brought about by higher utility rates that eroded purchasing power.

“The Budget was directed at reducing the deficit rather than ensuring better living standards,” the GWU national council said.

While criticising the higher excise duty on fuel and the new tax on cement, the union insisted the government should freeze its costs over a stipulated time frame.

It said the cost of living compensation should be calculated on a twice-yearly basis and the weightings of the mechanism – established two years ago – should be adjusted to reflect the big increase in water and electricity rates last year.

The government should reduce utility tariffs, the union added, in view of the decision not to award the energy allowance, which last year amounted to €11 million.

The union welcomed the €25 per week benefit for workers on the minimum wage who undergo training but reiterated its call for the minimum wage to be increased.

It criticised the higher VAT rate on hotels, especially since it said this was introduced without prior consultation with stakeholders.