Congress calls for National Recovery Bond as part of new Social Solidarity Pact
16 Jan 2009
Congress today (January 16) called for the establishment of a National Recovery Bond which members of the public could contribute to, as part of a new Social Solidarity Pact to be drawn up in response to the current economic crisis.
Launching the Congress response to Government proposals published last month, General Secretary David Begg said any attempt to cut pay would merely exacerbate the crisis: "We cannot be party to an exercise which is designed solely to cut wages and services. This crisis requires new thinking and Congress is bringing forward several new proposals on how it can be tackled - by all of society."
Mr Begg said a National Recovery Bond would be an innovative way for Government to raise money and for people to "buy into a new plan - but only if they felt it was fair."
It was also time to put an end to "the culture of corporate welfare - the myriad of untested tax breaks and incentives to business, unless it can be proven that they demonstrate a return for the taxpayer. Untested tax breaks and incentives got us into this mess to begin with and resources are now too scarce to be wasted."
He also said the loss of 20 percent of the tax base meant it would be necessary to raise the higher rate to "48 percent, on incomes that are a multiple of average industrial earnings."
In addition, it could be necessary to introduce a property tax on property other than the family home, or on properties above a certain size or value - so called 'trophy homes'.
Mr Begg outlined the four key priorities of a new Social Solidarity Pact:
o Get Credit Flowing Again
o Reflate the Economy and Maximise Employment
o Stabilise the Public Finances
o Address Competitiveness in a holistic fashion
The Congress proposals contain a number of other initiatives, in this regard:
- Strategic intervention in the economy - renationalise Eircom to overcome the national competitive disadvantage in Broadband infrastructure and supply;
- Reshape the Social Welfare system to focus on skills development and establish a national Flexicurity System
- Set Capital taxes at relevant income tax rates
- Invest in a pre-school, early development education programme for all children under three and establish a National Childcare Network
- Establish a Primary Health Care Network
- Put in place measures to protect private sector pensions and examine the development of a mandatory pension system
- Invest in Pubic Transport, a School Building programme, Social Housing and Home Insulation
- Establish a new Corporate Governance Regulatory regime
Read the full text of the Congress response to the government's Smart Economy document here.
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