Time to share prosperity
Sinn Féin pre-Budget submission
In its first Budget the Fianna Fáil/Progressive Democrats
Coalition government had the option to make real progress towards
the elimination of poverty and the building of equality in Irish
society, or to continue the pattern of previous years and benefit
the wealthy while leaving the disadvantaged behind. It took the
latter course.
Budget `98 was thus a deep disappointment to all those who had
hoped that the current robust health of the Irish economy would
be used in an energetic way by a new government .
Budget `99 - due on 6 December - is a second chance to take the
radical action needed to spread the benefits of economic
prosperity across the dividing lines of Irish society.
In urging the government to seize this second chance Sinn Féin
rejects the culture of Mé Féinism which pervades much of the
`Celtic Tiger' economy and which government actions -
particularly the last budget - have fostered.
A culture of individualism sees the wealthy few and the
personally ambitious and greedy benefit most from economic
activity to the detriment of the common good, and especially of
the disadvantaged sections of society. Reducing the contribution
to the public purse of those who can most afford to contribute is
the wrong approach. Emphasis should be placed instead on
enhancing the quality and quantity of services provided by the
State in health, education, housing, social welfare,
infrastructure and employment creation.
In pursuing the goal of Sinn Féin as against Mé Féin we advocate
an economic approach based on the spirit of co-operation which is
seen in the thriving community and voluntary sector. We urge the
application to Irish economic policy of what James Connolly
called ``the democratic principle of the republican ideal''.
Taxation
Create equity and end evasion
When will there be a fair taxation system? This is the one
question that has been left unanswered by successive Ministers
for Finance. Over the past five years the Irish public have
witnessed one taxation scandal after another. There have been:
- Politicians who have evaded tax;
- Banks who have deliberately allowed their customers defraud
the State;
- High earners who pay little or no tax because their income
and status allows them to exploit loopholes in the tax code;
- Companies who siphon funds out of the Irish economy leaving
ordinary citizens with a disproportionate share of the tax
burden.
- A taxation system where PAYE workers pay over 80% of total
income tax.
There has been some simplification of the tax code, but the much
needed root and branch reform of the taxation system has been
avoided by successive ministers. Last year Charlie McCreevy
ignored advice to use the considerable funds available for income
tax cuts to help the low paid. We proposed using all those funds
earmarked for income tax cuts to raise the tax free allowance
enjoyed by all workers. This would help all workers but the low
paid would be the prime beneficiaries.
The Minister cut not only the higher rate of income tax but also
slashed the rate of capital gains tax by half. The result is a
tax code characterised by abuse and structural inequity. This
Coalition has already promised to deliver further cuts in
corporation tax without making any firm commitment to the low
paid.
The taxation measures in the 1998 Budget thus widened the gap
between rich and poor. Tax cuts once again disproportionately
benefitted the higher paid. This must not happen again. The tax
priorities must be:
- Improving the income of the low paid.
- Using extra revenue not to boost the incomes of the highest
paid but to improve services in health, education, social
welfare, infrastructure and job creation.
Sinn Féin proposes:
- Increase the tax-free allowances of single people by £1000
and co-habiting couples by at least £2000 annually.
- No more cuts in corporation tax or capital gains tax.
- More resources should be directed towards tackling tax
evasion and fraud. Currently there is a disproportionate emphasis
on tackling abuses of the social welfare code while the big tax
fraudsters largely escape unscathed.
- An increase in corporation tax for Irish retail banks with
the resulting tax funds earmarked for community and local
development projects in the most disadvantaged areas throughout
the state
Agriculture - development not dependency
Sinn Féin proposes that this year's budget must address itself to
both the immediate crisis faced by Irish farmers as well as
taking the first steps to ensure the long term economic future of
rural communities. In 1996 there were 301,000 people working full
and part-time on Irish farms. Securing their future must be a
priority.
Sinn Féin proposes
- Extension of the Family Income Supplement to low-income
farmers.
- A comprehensive review of both the Irish Government and EU
subsidy schemes for farmers. The levels of direct payments to
farmers have increased by 132% since 1992. Much of the funding
flows disproportionately to the larger farmers leaving the
majority of farmers behind.dependency cycle which is forcing ever
more farmers off the land.
Social Welfare - Real work not workfare
Up to 1.5 million people in the 26 counties are dependent on
social welfare payments. They are not just the unemployed but
pensioners, people with disabilities, widows and widowers, lone
parents, farmers with small holdings, the self-employed on low
incomes and lastly but most importantly the children of these
groups.
The recent ESRI conference on Budget Perspectives highlighted
these inequalities. They found that the incomes of the top
earners in the 26 Counties have over the past four years
increased more rapidly than those at the bottom. They also found
that social welfare payments increased by 16% over the last four
years compared to a 22% growth in average income.
Sinn Féin proposes
- An immediate increase in social welfare payments to levels
that will allow an individual to live with dignity in truly
adequate living conditions that will create the possibilities for
greater economic participation in society.
- At the very least social welfare payments should keep pace
with average earnings and be raisedto bridge the gap highlighted
by the ESRI report.
A real action plan on unemployment
Sinn Féin believes that there is a need for a real Employment
Action Plan, which has as its objectives the goal of empowering
the unemployed to get the education and other skills necessary to
enter the labour market. An action plan would look at the issue
of educational disadvantage and exclusion and study how this has
generated unemployment.
important part of this process would be a comprehensive review
of the spending made by the Irish Government across a range of
departments for tackling unemployment. We estimate that between
spending on Education, Enterprise Trade and Employment as well as
the unemployment provisions in the Department of Social, Communty
and Family Affairs over £4.2 billion is being spent annually on
either education, job creation or unemployment benefit payments.
Out of a total spend of over 14 billion in 1999 this is a
significant amount of money and the effectiveness of government
policy must be questioned given that there are still well over
200,000 people unemployed in the 26 Counties.
Tackling the Housing Crisis
- Major investment in a new and comprehensive social housing
programme.
- The purchase of land for housing by local authorities,
compulsorily where necessary. If it can be done for public roads
it can be done for public housing.
- Community involvement in planning of new housing. Best
design high density schemes merit examination.
- Proper maintenance and security on all local authority
housing complexes and schemes to ensure tenant comfort and safety
and the securing of well-kept housing stock by local authorities
to meet future needs.
- New Housing Act to outlaw `gazumping'.
Health for all not for health for wealth
There are 34,000 people on hospital waiting lists in the 26
Counties. Hospital beds have been forced to close at the end of
1998 because of lack of funds. There is a severe shortage of
nurses. Hospital staff, especially nurses and junior doctors are
forced to work extremely long hours which creates a real danger
to the welfare of both patients and staff. All this points to
three major ills in our health system:
- Lack of long-term government planning and bad management and
organisation
- Inequality within the system
- Underfunding.
Sinn Féin proposes:
- Comprehensive review of training, staff organisation,
working practices and pay in the health services to end the
inequality between well-paid consultants who operate profitably
in both public and private practice, and the hard-pressed staff
of public hospitals who do most of the healthcare work.
- Major increase in health spending in the Budget designed to
eliminate waiting lists.
- Irish National Health Service Act to provide free care and
medication for all who need it.
- Recognition in all government policies that ill-health is
linked to poverty.
Education - seize the moment
Sinn Féin proposes:
- Continuing priority and increased budgetary provision for
primary education.
- Increase primary education funding from £50 to £120 per
pupil per year
- Reduce the average class size to under 30.
- Radical action on remedial teaching with increased numbers
of teachers and adequate access to remediation to all schools
- More flexibility in determining staffing needs of schools to
ensure that schools are not left understaffed.
Third level proposals:
- Abolish registration fees.
- Increase grants.
- Fairer system of grant allocation.
- Special measures to provide student accomodation in the
context of addressing the overall houing crisis.
Ghaeilge
Tá sé geallta ag an rialtas Bille Teanga a chur os comhair an
Oireachtais i 1999. Bheadh sé mar chuspóir ag an Bille seo ní
hamháin cearta teanga a chosaint iad ach a chur chun cinn. Is
céim tábhacthach é seo agus eilímíd beart de réir a mbriathar ón
rialtas. Ach taobh leis an mBille seo tá gá le maoiniú ceart don
Ghaeilge ón Stát. Le blianta beaga anuas tá an maoiniú seo tar
éis sleamhnú. Má leanann an sleamhnú seo ní bheidh an Stát féin
ná earnáil dheonach na Gaeilge in ann Bille Teanga a chur i
bhfeidhm.
Molann Sinn Féin
- Méadú £500,000 sa bhliain le Ciste na Gaeilge.
- £10 milliún do Chiste na Gaeilge thar an tréimhse cúig
bliana seo romhainn
- Aithint do ról lárnach Chomdháil Náisiúnta na Gaeilge agus
méadú ar lármhaoiniú na Comhdhála.
Older People
Sinn Féin proposes
- Linkage of Old Age pension rate to average industrial wage.
Government to bring pension up to 40% of average industrial wage.
- The Medical Card to be granted to all persons over the age
of 66.
- Proper recruitment, selection and training for home helps.
Abolition of the current system of payment of `expenses' at
different rates by different health boards and the introduction
of adequate rates of pay and a standardisation of the service
across the State.
- Provision of necessary funding to local authorities to
introduce a central heating system to all Old Person's Dwellings
(OPDs) in their housing stock.
- Voucher system for free travel on private transport by older
people in rural areas which are not served by public transport.
- Grant entitlement to free travel to spouses of pensioners
when not accompanying.
Additional measures
- The Labour Court recommendations in relation to the Irish
Sweepstakes workers should be implemented in full
Supporting the most disadvantaged
The rights and needs of the physically and mentally handicapped
and their carers must be a government priority. Recongnition
needs to be given in particular to those who care for the
handicapped at home, thus saving the State hundreds of millions
of pounds annually.
Sinn Féin proposes
- A spending allocation of £60 million in this Budget to cater
for the needs of the mentally handicapped and their carers.
Special priority for the provision of badly needed respite care.
- Financial support for the 50,000 full-time carers through
the replacement of the Carers' Allowance with a much expanded
scheme of payment which recognises the value of carers' work and
is not, like the present allowance, treated as an income support
payment only.
- £17 million allocation for basic supports to over 4000
wheelchair users.
Aid, Development and Debt
Sinn Féin deplores the Irish Government cuts in the Bi-lateral
Aid and Humanitarian Assistance Programmes. This is a backward
step at a time when the government should be increasing the
Overseas Development Aid (ODA) as a percentage of Gross National
Product (GNP). It is particularly regrettable as this move comes
just days before the 50th Annniversary of the Universal
Declaration of Human Rights on 10 December.
Sinn Féin proposes
- Substantial increase in ODA so as to reach .45% of GNP by
2002.
- Reversal of government decision to join the International
Monetary Fund debt relief initiative. Instead the government
should take the lead - as it has done in its recent initiative on
nuclear disarmament - in calling for the cancellation of the
massive debt on poor countries which is a direct cause of daily
misery and starvation.