The Progressive Democrats have accused the Labour party of attempting to reverse five years of economic progress by proposing to rise employers PRSI if in Government after the next General Election.
In a statement issued this afternoon, the Tanaiste, Ms Mary Harney, said the Labour Party’s plan to reverse the 1.25 per cent reduction in employers’ PRSI introduced in last December’s budget would make it more expensive to employ people and would negatively impact on national employment levels.
"They [the Labour Party] bitterly resisted every reduction in the higher rate of income tax over the last five budgets," Ms Harney said.
"If they believe it was wrong to go from 48 per cent to 42 per cent then they must believe it is right to go from 42 per cent back towards 48 per cent."
The Labour Party has proposed to reverse December’s reduction in employers PRSI to fund improvements in the childcare system if they are returned to government.
Ms Harney also said she believed that the proposed PRSI increase would not be Labour’s only tax increase.
Her comments follow the Labour Party’s publication of the revised 'New Direction, New Priorities' document originally published two years ago which outlined the Party’s policies regarding the reform of public service.
Today’s document sets out how Labour’s political priorities would be funded and the implications for the Exchequer.
Labour proposes to:
- borrow to support capital programmes like the NDP not day-to-day spending
- reduce the contribution to the National Pension Reserve Fund to support the capital programme in the Health Strategy.
- further investigate ways of using the NPRF to finance projects in Ireland.
says it will not:
- allow the General Government Deficit exceed 1.9 per cent.
- not increase income tax rates but we have indicated for example that reversing last year's reduction in employers' PRSI will help pay for our radical package on childcare.