Budget 2008 Must Deliver for Working Families

8 Nov 2007

The forthcoming budget must prioritise working families and ensure they are properly-supported, the Irish Congress of Trade Unions said today.

Speaking at the launch of the Congress Pre-Budget Submission, General Secretary David Begg said: "Across a whole range of areas, official policy is pushing up costs for working families and creating additional, unnecessary burdens.

"Quiet simply, people need to see prices coming down and more in their pockets.

"It is evident in areas such as the poorly-resourced services on which so many working families depend - health care, schools, public transport links.

"We are among the worst in Europe on key issues like childcare, parental leave and flexible working.

"Budget 2008 needs to deliver for working families on all these issues", Mr Begg said.

"Congress strongly believes that investment in people and the services that support them will reap rich dividends in the future: investing in decent, affordable childcare enhances children's development, in the same fashion as investment in education; investing in support systems that facilitate greater labour force participation is vital to any modern workforce. Equally, investment in upskilling the workforce is the key to future economic growth - that is where we can gain a competitive advantage.

"We also recognise the need to make good the serious deficiencies in our hard infrastructure, such as public transport and roads and, in that respect, Budget 2008 assumes a greater significance, in that it must clearly signal that the National Development Plan will have the resources necessary to be implemented in full.

"Ultimately, we believe that a serious programme of investment in people and services will deliver greater social cohesion, greater opportunities for all, increased productivity and stronger national competitiveness," Mr Begg said

See attached summary for key points of Congress Submission

Ends

 

Congress Pre Budget Submission
Summary of Key Points
Investment Priorities

The delivery of an integrated and efficient public transport system will result in immense social, economic and environmental benefits. As a major transport funder, Government must make this a priority.

We are calling for the introduction of Paid Educational Leave to ensure a determined focus on upskilling and retraining.

Housing affordability remains a serious problem for too many of our citizens and, at current levels of provision, targets agreed under Towards 2016 will not be realised.

It is clear that both the planning process and school building programme are seriously deficient. The building of large scale developments minus any facilities must become a thing of the past.

Tax

Budget 2008 should increase the individual's personal tax credit by €100 and the employee's tax credit by €350 - a total of €450 pa. Congress is also calling for the introduction of Refundable Tax Credits. Increase the individual's standard rate tax band by €4,000.

 

PRSI Earnings Exemption Threshold should be increased from €287 pw to €442 pw PRSI Tax Free Allowance This should be increased from €127 pw to €217 pw

The current high ceiling on pension contributions should be substantially reduced to €30,000 for reasons of equity and to reduce tax avoidance by high income earners.

Congress believes any new measures on Mortgage Interest Relief should go beyond what is contained in the Programme for Government.

The minimum wage must remain outside the tax net.

Budget 2008 must end the unfair practices, in respect of tax and social welfare, which discriminate against same sex and cohabiting couples.

Asset-stripping Private Equity firms should not enjoy tax advantages over normal commercial companies

A subsidy regime for biofuels would increase food price and would not be environmentally sustainable

The introduction of a new tax on oil and gas profits is welcome, a tax on production would be more transparent and efficient

EU law does not prevent Ireland ensuring any oil or gas found here is offered for sale in first in Ireland, rather than on the international market

Better Services & Supports for All
In health, the co-location initiative must be dropped or an independent review carried out. We do not believe it will stand up to scrutiny.

Improved Maternity and Paternity Leave

The introduction of a Payment for Parental Leave;

A Legal Right to Flexible Working

Free Early Childhood Care for 3-4 year olds

Better in-work benefits for working parents

Fair treatment of Same Sex and Cohabiting Couples.

Increase Qualified Adult Dependant Allowances

Reinstate Direct Provision for Asylum Seekers

Increased Payment to Carers

Ensuring Income Security in Retirement

Improvements in the lives of People with Illness or Disabilities

- In work benefits

- Sheltered Workshops

- Second Tier Invalidity Benefits