Rabbitte unimpressed by 'Budget for super-wealthy'

"Once again, Fianna Fáil have decided to disproportionately favour the super-wealthy few, rather than the hard-working many,” he said.

"The cut in the top rate of tax will give a person on €250,000 a tax break of more than €2,000, yet gives a person on the average industrial wage nothing. This is a Budget from a Government that has simply run out of ideas."

Meanwhile, Fine Gael deputy leader and spokesperson for finance Richard Bruton slammed the Government.

"This is the Government’s tenth year in power," he said. "In the last five months, the Minister has raised and spent over €258m. Today he wants you to focus on the last 1% of your money which he is spending. He doesn’t want you to look back at the way these ministers have spent the last 99.

“But the Irish voter does not have such a short memory. What people ask is why has a government that made so many promises, who had so much money, still let down so many people who depended on them.”

However, Tánaiste Michael McDowell described the Budget as an historic one in which the Irish people can take pride.

“Budget 2007 will allow for significant increases in social welfare and in other services for society, especially for the elderly,” said the PD leader.

“It will allow for taxation rates to be reduced, providing tax relief for citizens whose energy has produced the resources in the first place.

“It will allow us, without having to borrow money, to pay for all of the capital projects we need, including roads, hospitals and so on. And it will allow for significant sums to be invested in the National Pensions Reserve Fund and to reduce the National Debt.”

The Budget itself attracted mix reactions from organisations around the country.

Although dubbed a great day for small businesses and enterprises, pension groups feared the elderly could continue to live below the poverty line despite improvements in the level and quality of care schemes for the elderly, along with an increase in nursing home subvention payments.

School unions raised concerns that little was being put towards special needs pupils.

The increase of 50c on the price of a packet of 20 cigarettes was also criticised after claims it would be hit with a two euro hike.

“If the Government is serious about achieving a tobacco free society then the 'price nettle' must be grasped,” said Professor Luke Clancy, of ASH Ireland.

“Cigarettes are a highly addictive killer product and people need assistance with cessation, and price is well established as the best way of achieving this.”

John McCormack, of the Irish Cancer Society, added: “The announcement verifies the decision that the Government has lost its way in terms of trying to protect young people by allowing the tobacco industry free access to them.

“This decision represents a complete failure by this Government to protect the health of our population and is facilitating a direct resurgence in smoking levels especially in women and in young people.”

The Vintners’ Federation of Ireland expressed its disappointment at the failure to reduce the current excise duties on alcohol.

Barnardos, Ireland’s largest children’s charity, gave a mixed reaction - although hailing the 10 euro increase in child benefit, it believes more could have been done to cut child poverty and increase the provision and quality of services for children.

“Overall we would give this Budget six out of ten with additional remark ‘could have done better’,” said chief executive Fergus Finlay.

Focus Ireland’s Declan Jones said: “We are very disappointed there was no real action taken in the Budget to provide more housing for those more in need. A key area of concern is the lack of action to date to ensure rent supplement payments allow people to meet the real rents they are being charged in the private rented sector.”

The mortgage interest relief for first-time buyers was welcomed by the Professional Insurance Brokers Association, the country’s largest group of independent brokers.

CEO Diarmuid Kelly said while this measure will not fulfil all the needs of the first-time buyer, it is certainly a step in the right direction.

Pat Delaney of IBEC said it was a great day for small businesses, while Annette Devine, President of the Irish Hotels Federation said allowing VAT refunds on hotel costs for conference visitors will give an enormous boost to marketing Ireland and help in gaining a greater share of the 40 billion euro global conference market.

Dublin Chamber of Commerce said changes to VAT on conference business, together with the construction of the National Conference Centre in the Docklands by 2009, will add over €50m per annum to the Dublin economy.

The decisions to radically alter vehicle registration tax (VRT), motor tax and the introduction of vehicle labelling represent one of the most progressive environmental measures to be introduced in recent years, said Minister for the Environment Dick Roche.

He added that the Budget contains a whole range of environmental measures across transport, agricultural, industrial policy as well as in the area of Environment and Local Government.

IFA president Padraig Walshe said the result is positive for farm competitiveness and will address the structural problems of inadequate scale and fragmentation of family farms in Ireland.

While Macra na Feirme welcomed measures to help encourage farmers get more involved in growing energy crops, in particular the planting grants for Miscanthus and for Willow, as well as an increase in payment for the growing of energy crops.