McCreevy's double standard
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We are ...an open community based organisation, owned
by our members, run by volunteers. Competition or
profit are not on our agenda
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``The biggest cock-up in the tax history of the state''.
This was how Tony Smyth, Irish League of Credit Unions
(ILCU) General Secretary, described the plans announced
by Finance minister Charlie McCreevy to tax credit
union savings and have Credit Unions report to the
Revenue Commissioners any dividends of over £500 paid
to members.
This week McCreevy completely abandoned his plans after
a wave of opposition from within his own party and in
the credit union movement.
The credit union provisions were part of an important
piece of government legislation - the 1998 Finance
Bill. The bill contains most of the provisions
announced in last December's budget.
The most damning element of the Finance Bill's
provisions is that McCreevy picked the softest possible
target when focusing on the credit union movement. He
could not, it seems, tackle the multi million pound
free riders of the Golden Circle and at the same time
tax those who are using offshore tax havens to avoid
paying tax.
It is now more than eight months since the £38 million
Ansbacher deposits scam was revealed to the Irish
public. During that time the minister and his
department have been singularly unable to deal with
this debacle and restore public confidence in the
state's much tarnished tax regime. There is only one
small provision in the bill which deals with this
issue.
other element of the bill is dealing with tax
avoidance. Thousands of the top earners in the 26
Counties have found ways to exploit loopholes in the
tax code. A survey by the Revenue Commissioners last
December showed that almost one in five people with
incomes over £250,000 pay income tax of just 20% a
year. 8.5% of the top earners paid less than 5%. The
effectiveness of how the bill will deal with these
issues has been overlooked.
The ILCU described their role in the economy to the
McCreevy as ``We are ...an open community based
organisation, owned by our members, run by volunteers.
Competition or profit are not on our agenda''.
The still unanswered question is why the non profit
ILCU was targeted by McCreevy and the corporate tax
sharks and free riders have possible another free year.
Finance ministers' record of bungling
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Charlie McCreevy entered the finance bunglers hall of
fame, his portrait nestling alongside many of his
predecessors including Ruairi Quinn, John Bruton,
Martin O'Donoghue and even Charlie Haughey.
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What is it about being Finance minister in the 26
Counties that turns formerly rational politicians
(though limited and often mundane people) into
blundering legislators whose lack of judgement and
political u-turns are becoming the stuff of legend?
This week Charlie McCreevy entered the finance bunglers
hall of fame, his portrait nestling alongside many of
his predecessors including Ruairi Quinn, John Bruton,
Martin O'Donoghue and even Charlie Haughey.
Haughey was quite an effective legislator as Finance
minister but it could be argued that it was as master
of the state's finances that he decided that life in
semi-detached suburbia was not for him and embarked on
decades of living beyond his means to the tune of
millions of pounds.
Martin O'Donoghue was Fianna Fáil Finance minister from
1977 to `79 and introduced the FF economic programme
that culminated in a growing state debt and totally
misjudged the economic conditions of the time. The net
result was a decade of spending cutbacks and over
250,000 young people emigrating.
John Bruton's plan to introduce VAT on children's
clothes and footwear cost him not only his job as
Finance minister but also led to the fall of the Fine
Gael/Labour coalition.
Ruairi Quinn's tenure as Finance Minister saw him
undergo a rapid political transformation casting aside
whatever socialist credentials he still retained and
re-emerging as a conservative monetarist Finance
minister.
One particular failure of the Quinn era was his
continual stalling on Labour's commitment to creation
of a vibrant state bank. Now it was just more of the
steady as she goes financial conservatism that is the
hallmark of the department.
So come on down Charlie and enjoy your entry as the
latest member of this not very select or exclusive club
of ditherers and bunglers. Cheer up though, six of the
previous encumberents ended up as party leaders. right
now the only way is up.
IJM dispute ends
Cavan Monaghan Sinn Féin TD has welcomed the resolution
of the dispute at IJM Timber Engineering in Monaghan
Town. The threatened closure of the plant has now
receded. Closure would have cost the area 130 jobs and
severly damaged the local economy.
Now IJM management have agreed to recognise the
Building and Allied Trades Union while locked out
workers at the plant have called off their strike
action which was due to begin next Monday. Talks will
continue to resolve the issues whichg lead to the
lockout two weeks ago.
Caoimhghín O Caoilain said in a statement that ``I
warmly welcome this resolution. I commend both the
trade union and the management at IJM for applying
themselves successfully to the settlement of their
dispute. It is great news for the town and people of
Monaghan''.
£100,000 wage club
There are over 1.3 million workers in the 26 Counties.
Hundreds of thousands of these get by on meagre wages
and salaries. Wage increases are in small proportions
and in the long run few people are any better off.
At the top end of the spectrum though things are
somewhat different. Figures released from the
Department of Finance show that the number of people
earning more than £100,000 a year has more than doubled
over the past four years.
In the 1993-94 tax year there were 2,100 people earning
more than £100,000. Now in 1997-98 the figure has risen
to 4,600. The most common income bracket was the
£10,000 to £12,500 which accounts for £133,000 tax
payers. Nearly 600,000 people earn less than £10,000.
This shows conclusively that though some are creaming
it at the top end of the wage scale the vast bulk of
workers whose efforts have actually created the
economic growth are living on below average incomes.
Ryanair Profits
Further evidence - if it were needed - of why Ryanair
should recognise SIPTU and negotiate with baggage
handlers on wage improvements was shown in its profit
figures for the last three months of 1997.
Profits rose by £3 million to £8.1 million for the last
three months. The company made £32 million in the last
nine months of 1997. Time to pay up I think.
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