The Irish Congress of Trade Unions is seeking tax cuts worth £827 million (€1,050 million) in the December Budget. It also wants increases in the old age pension to be linked to average earnings.
However ICTU wants corporation tax to be standardised at 20 per cent by 2010, rather than the Government target of 12.5 per cent. It also wants employers' PRSI increased by 1 per cent.
Launching the Budget submission Time for fair sharing yesterday, ICTU general secretary Mr Peter Cassells described it as "a bridge to a new agreement" with the Government and employers on a successor to Partnership 2000. The Government has delivered all of the tax concessions promised in Partnership 2000 ahead of target, therefore the Minister for Finance, Mr McCreevy, is technically free to deliver any Budget he sees fit. However, Mr Cassells said yesterday that unions expect the Government to continue the policies of a fairer tax regime, measures to tackle social exclusion and greater investment in our "human infrastructure and quality of life".
The ICTU executive is to meet the Minister for Finance, Mr McCreevy, on Friday, November 5th, the day after its special delegate conference decides on whether to enter talks on a new national agreement.
Presenting the main features of the submission, ICTU deputy general secretary Ms Patricia O'Donovan said that personal tax free allowances should be increased by £800, the PAYE allowance by £1,000 and the threshold for paying the health service levy by £750. The standard rate tax band should be increased by £1,900 to further benefit low and middle income earners.
She called for a special courts tax division to be set up to deal with tax offences, and for statutory codes of conduct to be established for financial institutions and associated professional groups such as accountants and brokers. Better supervisory and regulatory mechanisms are needed.
Ms O'Donovan said that the corporate sector could well afford a tax rate of 20 per cent, particularly areas such as retailing and financial services. The old age pension should be raised to £100 a week this year, rather than in 2002, the Government target date, Ms O'Donovan said. All welfare payments should be increased in line with average earnings, rather than on the basis of the consumer price index.
There should be sustained programmes over five to 10-year periods to target disadvantaged areas, she said. Providing "lifelong learning opportunities", removing barriers that exclude people with disabilities from the workforce and implementing the recommendations of the Partnership 2000 Working Group on Childcare, were amongst the priorities in these areas.
This was not just a question of tackling disadvantage but building our human resource base in ways that would benefit the economy and society in general, she said.
