Coalition Budget: Pay More

When all the juggling with statistics is finished the simple truth about the Coalition’s budget is that you pay more and get less.

But that is only a taste of things to come. The real significance of the budget is that it shows byond doubt that the Coalition is firmly committed to a policy of making the poor pay for the economic crisis. Any worker who expects some relief in the ‘real ’ budget next April is in for a shock.

Fine Gael’s economic strategy is based on indirect taxation. Instead of taxing income through PAYE it is intended to increase taxation on goods bought mainly by workers for their day to day existence. Since workers with low wages naturally spend more of their income on such items they will end up paying more of their income on such items and will end up paying more taxes.

Divide and Weaken Increases in the cost of living will of course generate renewed demands for wage increases. But the Coalition hopes it will be able to defuse them. Their major hope is that they will be able to divide and weaken the workers’ counter-offensive. Traditionally it has been the better paid workers -- the craftsmen and public sector workers who had either scarce skills of monopoly power - who have forced up the size of the wage packet.

Since the traditional ‘wage-leaders’ will be less affected by the change to indirect taxation it is expected that they will remain quiet and leave the general mass of unskilled workers to their fate.

At the same time the Coalition intends to go on the offensive against the workers movement. Vague hints of this were evident in Bruton’s budget speech. He spoke about involving those who are not represented at national wage negotiations but whose incomes are affected by their outcome. He had in mind mainly the ’farming community’. So in the next round of National Understanding talks the trade unions will be confronted not only by the Federated Union of Employers and the Government but also the Irish Farmers Association ~~ | DUBLIN DISTRICT COUNCIL “wit he Wiis ‘ se, IRISH TRANSPORT 2 = GENERAL WORKERS" eNee OER Are the unions going to unite workers against this coalition government?

Association.

Determined Offensive In short the budget foreshadows the main elements of a determined offensive against the workers and their allies amongst the poor.

First there is the economic policy objective of ‘soak the poor’, This is a straightforward recognition that the economic crisis is a crisis of capitalism and can only be solved at the expense of the workers.

Secondly there is a conscious strategy of divide and rule.

union movement. unions. ments will be reduced. and the Irish Creamery Milk Suppliers Get Less Thirdly there is a concerted effort to unite all sections of the capitalist class to break the power of the trade Workers will be able to defend themselves only if they clearly recognise what the Coalition is up to. There is one major flaw in the strategy which can become the ace card of the trade The government aims to pacify workers in the public service sector. But even if tax concessions do enhance the wages Labour Party During the recent General Election campaign it became obvious that the Labour Party in Limerick had lost its cutting edge. Its election literature had the Starry Plough turned upside down. There are those who believe that Labour would not know the difference but the truth of the matter is that it is simply a confirmation of Labour turning the teachings of Connolly on their head. Participating in a Blueshirt Coalition, and support for British imperialism in the six counties is not what Connolly died for.