Richard Boyd Barrett: Calls July 'stimulus' a cut for low earners
Richard Boyd Barrett challenged the Tánaiste over the government's July stimulus, arguing it would slash payments to people on the lowest incomes and those hardest hit by Covid-related unemployment. He accused the plan of progressively cutting the PUP and said that calling it a stimulus was a misnomer.
Main criticism
Boyd Barrett argued that the promised July stimulus would not stimulate but would reduce incomes for people who lost jobs or had reduced income due to Covid. He said the plan appears to progressively cut the Pandemic Unemployment Payment (PUP) over the coming months and questioned how cutting supports can be described as a stimulus.
Allegations about cuts to low-income households
The deputy said leaked details suggested some of the lowest earners and those hardest hit by loss of income would not receive a stimulus. He framed the cuts as unfair to people who suffered hardship through no fault of their own because of the pandemic.
Government response and claimed figures
In reply, the Tánaiste defended the package as stimulus, stating the government would "pump about 30 billion euros into the economy this year." The Tánaiste described the package as taking in about 50 million in taxes and spending 80, and said the measures under discussion are part of that broader fiscal support.
Wage supports and timeline
The Tánaiste said the wage subsidy scheme and the pandemic payment had originally been due to end around 10 August but would now be extended. He indicated there would be a further stimulus and that supports would be phased out because they "can't last forever," adding that the best way to help people was to get them back to work rather than keeping them on welfare.
Parliamentary process and next steps
The Tánaiste said the July stimulus package would be agreed by cabinet and published, with legislation to be debated in the House next week. Boyd Barrett pressed for consideration of deputies' concerns before final decisions were revealed.
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For some weeks, Tanaiste, you have been promising the famous July stimulus, the details of which we will get soon and legislation presumably will be discussed next week on this. But isn't it the case that the term stimulus really is a completely misnomer when we have leaked today, something that was in the air for the last number of days, is there's not going to be a stimulus for some of the people on the lowest incomes and some of the people who've been hardest hit by loss of income and by unemployment caused not by any fault of their own but because of the impact of Covid because the plan is now to slash, it's not a stimulus but to slash the payments of people who've lost their jobs, who've seen reduced income and to progressively cut the PUP over the coming months. How is that a stimulus, first of all, cutting the incomes of people who've lost jobs and incomes and how is it fair to people who've already suffered hardship as a result of the pandemic? The time is up. The government will agree the July stimulus package and will publish it this afternoon and it will of course require a debate in the House including legislation next week but at least until the decision is made by cabinet I can't reveal the contents of it but all of the matters that deputies have raised will be considered. What is stimulus, Count Corle? Stimulus is the government pumping money into the economy and that's exactly what we're doing. We're going to pump about 30 billion euros into the economy this year and this is only part of that, taking in about 50 million in taxes, spending 80. So 30 million, 30 billion euros being pumped into the economy, that is a stimulus. The plan was to end the wage subsidy scheme and the pandemic payment in August, around the 10th of August. That will now not be the case. They will be extended, there will be a further stimulus but we will set out how they will be phased out because they can't last for us. I think people appreciate that and the best way to help people is to get people back to work, not keeping them on welfare forever which is a very different type of policy which I don't support.
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