Congress calls for Fundamental Policy Shift in Budget

27 Oct 2005

Congress General Secretary David Begg today called for a "fundamental policy shift" in the coming Budget.

Launching the Congress 2006 Budget Submission, he said: "Congress is calling for a fundamental policy shift, with this Budget: it is time to shift that focus from the economic to the social, from the requirements of the economy to the needs of society.

"In the past, we've been told: 'we must make the money before we can spend it.' Today we have the money. Today we have the opportunity to address the many serious social and structural deficits in our society."

The Congress Budget Submission (click for submission) contains a number of key recommendations on Childcare and the Care sector; Royalties on natural resource extraction; taxes on exceptional company profits; the abolition of business tax breaks; a clampdown on 'tax exiles'; investment in social infrastructure, such as health education and public transport.

Key Congress Recommendations

Childcare

  • Introduction of PRSI-based paid Parental Leave Benefit;
  • Restoration of Maternity Benefit to 80 percent of average industrial earnings;
  • Increasing investment in capital allowances and staffing grants to develop the supply of childcare places towards a target of an additional 15,000 places per year;
  • Examining the Benefit-in-Kind structure to remove barriers that exist or discourage employer's contribution to childcare costs;
  • Completion of the report of the Working Group established under Sustaining Progress to examine how to improve the availability of childcare for working parents and how the supply of pre and after school care could be accelerated, is imminent;

Royalties on Natural Resource Extraction

The current regime is over-generous. Royalties at 12.5 percent of production should be re-introduced in the next Budget for future finds.

Indirect Taxes

The policy of shifting the burden of taxation from companies and incomes to higher taxes on spending and high administrative charges should be reversed;

Tax Breaks Most tax breaks for business, especially property-based ones, should be immediately abolished;

Tax Bands

To ensure that those on average industrial earnings pay no more than the standard rate of tax in 2006 the single person's tax band should be raised by €2,600 - from its present level of €29,400 to one of €32,000

Reform

Administration of the tax system needs reform. It should be rebalanced away from the pursuit of PAYE workers to the big evaders, especially in the building industry;

Infrastructure & Learning

The National Development Plan should focus on public transport and invest strongly in upgrading the skills of the workforce at all levels. A State Holding Company, should be established, into which the shareholdings in the commercial state companies would be placed

Employer Compliance

All public spending projects must require that the winning bid be in full compliance with all relevant labour and equality legislation;

Social Cohesion

Congress is seeking increases of €16.00 for pensioners in Budgets 2006 and €14.00 in Budget 2007, and:

  • increases in the lowest social welfare payment of €14.00 to €162.80 in 2006 and €12.20 to €175.00 in 2007;
  • an emphasis on measures to alleviate Child Poverty in this Budget
  • people with disabilities remain the most significant group of people in poverty or at risk of poverty. We are seeking the allocation of funding to deliver the implementation of the commitments under Sustaining Progress for people with disabilities in Budget 2006

Health

The ongoing crises and difficulties in the Health Service requires commitment to sustained long-term funding and issues of women's health require special commitment.

Congress will shortly be publishing a major report on the Health Service

Overseas Aid

Budget 2006 should make explicit the announced significant increases in Ireland's Overseas Development Assistance in 2006 and 2007, to reach an interim target of 0.5 percent of GNP by 2007.

 

Copies of the Congress Budget Submission can be downloaded from www.ictu.ie

 

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