The Irish Congress of Trade Unions said today (Sept. 14) that Budget 2017 should aim to raise living standards through investment of €2 billion in key services and critical infrastructure.
Speaking ahead of the publication of the Congress 2017 pre-Budget Submission People Deserve Better, General Secretary Patricia King said:
"We need to raise people's living standards and boost the Social Wage by investing in a range of key services such as health, education and childcare. After eight long years of crisis and diminished living standards the citizens of this society deserve far better.
In particular, Congress has proposed:
- €2 billion in additional spending to boost the Social Wage, by investing in key services and infrastructure;
- "Growth friendly" tax measures to raise an additional €1 billion in revenue;
- A sum of €1 billion allocated to tackle the Housing Emergency;
- An end to the reduced VAT rate for the tourism sector, while low pay and precarious remain so pronounced in the industry;
- Increasing employer PRSI on the portion of salaries above €100,000 to fund childcare provision.
- Introduce a Net Wealth Tax
Ms King said: "People deserve an inclusive equality-proofed budget that places the welfare and betterment of the majority at its very core, a budget that will prioritise higher living standards, and deliver this through a transformative programme of investment in infrastructure, services and service delivery."
The Congress submission outlines four key priorities for Budget 2017:
Repair & Rebuild
Congress proposes a sum of €2 billion in additional discretionary public spending. The government estimates there will be in the order of €1 billion available for Budget 2017 and Congress proposes raising an additional €1 billion through a series of growth friendly tax measures. If we continue with the "low-tax, low spend model" our public spending will be among the lowest in the European Union by 2021.
Raise the Social Wage
To begin the process of social repair we need to invest now to deliver the services our citizens deserve, to raise the Social Wage and boost living standards. These include: health, education, childcare and housing.
Tackle the Housing Emergency
Existing policy approaches and the market has failed to resolve the housing emergency. In such circumstances, the needs of the citizens require that the state must step in and allocate €1 billion to a major programme of home building and accelerate the Vacant Site Levy and introduce Compulsory Purchase Orders.
Decent Work & the Living Wage
Wage suppression, greater insecurity at work and lower living standards are no basis on which to rebuild an economy and a society. Work must provide citizens with decent incomes and workers should be able to deal with employers on an equal and fair footing, to win better conditions. The Living Wage of €11.50 per hour must become the floor for pay in the economy.
In addition, Congress has called for an end to the special 9% VAT rate for the tourism sector, which has already cost the state some €2.1 billion in revenue foregone.
General Secretary Patricia King said: "It is wrong that the sector should continue to benefit from this, while it is also home of high levels of precarious work and low pay. In addition, employers in the sector refuse to cooperate with state bodies – the Joint Labour Committees – designed to improve pay and conditions in the sector.
"It is beyond bizarre that they should continue to enjoy this special deal while refusing to engage," she said.
Congress has also proposed that Budget 2017 should:
- Increase employers" PRSI (on the portion of salaries above €100,000) to help fund childcare services;
- Abolish Personal Tax Credit for High Earners;
- Introduce a Recurring Net Wealth Tax;
- Reform Capital Taxes and Tax Break
