Madam, - Stephen Collins quotes a "senior [Fianna Fáil] party figure" saying the lesson of the past week was that it was going to be a lot more difficult than expected to get the public to understand the need for tough decisions: "People are all for decisive action in theory but not in practice. We have a lot of work to do to try and bring people around to understanding the need for appropriate action."
They just don't get it, do they? The man and woman in the street do not need patronising lessons in basic economic truths. They are only too painfully aware of the "why". But they have a right - indeed, dare one say, a patriotic duty - to express their views on the "how". - Yours, etc,
COLETTE NÍ MHOITLEIGH,
Ascal Rath Gearr, Baile Átha Cliath 6.
Madam, - Dr Kevin Ryan (October 29th) commends you for proposing a long overdue discussion of taxation policy. This is much to be supported. He goes on to argue for a comprehensive, regionally levied, property tax. However, I believe the emphasis needs rather to be on a universal land value tax.
The last property tax, introduced in the 1980s, was a total failure, essentially because it was levied on structures, as opposed to land, which resulted in a great deal of discrepancies. This distinction is brought home forcefully when we examine the value of land in housing between 1994 and 2006. In 1994 land value as a proportion of the average house price was 12 per cent; in 2000 it was 28 per cent; and in 2006 it was 42 per cent. (These percentages are based on values quoted in the Building Industry Bulletin, September 2007) This shows that the cost of land rose to a much greater extent over that period that the cost of houses per se.
What would be the effects of a land value tax (LVT)? Would it discourage economic activity? No. Businesses and individuals locate in high-value areas precisely because of the economic benefit, for which they are willing to pay. Under an LVT system, they would still pay the same amount for that benefit, the difference being that they would pay the community rather than private landlords.
Would it release land from the hands of speculators to those who are prepared to use it in economic production? Yes. Would it provide the Exchequer with much needed revenue to fund public services? Yes. Would it be transparent? Yes (no magician can make a plot of land disappear).
It may be appropriate to mention here that the Property Registration Agency (PRA) is well on the way to having all land in this State registered - in fact 85 per cent is so already. When it has reached 100 per cent — hopefully before too long - the Government will be in a position to introduce this fair and equitable tax, and we will also know what this fair land of Ireland is worth. - Yours, etc,
KONRAD DECHANT,
Arran Quay, Dublin 7.
Madam, - Two divergent approaches to the current economic crisis have come to light in recent days. Fiona Walsh's London Briefing (October 29th) provides the example of workers at JCB in England who have decided, through their union, to take a pay cut of £50 a week and move to a four-day week in an attempt to save 500 jobs. Here, meanwhile, current spending increases of €229 million are announced for the Department of Education in this year's Budget to pay, it seems, for teachers' pay increases agreed between the Government and relevant public-sector unions. This is in spite of the swingeing cuts in the Department's spending which will result in at least 1,000 teaching jobs being lost (according to the INTO).
Perhaps it is time for Irish teachers to show the same level of solidarity with their colleagues that workers in JCB have exhibited. A pay freeze and/or modest pay cut (and the resultant easing of Departmental current spending) would do a lot to safeguard threatened jobs. Or is that just a solution that the private sector should contemplate? - Yours, etc,
BRIAN KELLY
St Joseph's Place, Dublin 7
Madam, - According to Fianna Fáil the bailout of the banks was necessary to protect Irish jobs, so to oppose it would unpatriotic. Now the party is calling on people to be patriotic by supporting a Budget which is going to result in the loss of a large number of jobs.
We can now see Fianna Fáil's moral compass at work. It is unpatriotic to oppose bailing out rich bankers and developers but patriotic to support slashing teachers' jobs. Samuel Johnson defined patriotism as the last refuge of a scoundrel. Surely this parcel of scoundrels deserves the boot as soon as possible. - Yours, etc,
DAVID WALKER,
Sydenham, London.
Madam, - In light of the sharp drop in the senior Government party's opinion poll rating, perhaps the Taoiseach should emulate the founder of his party and look into his own heart to find out what the people of Ireland want.
If he does, I suspect he may find that the people want nothing less than the highest quality services provided free by the State in conjunction with minimal taxation. - Yours, etc,
COLUM HAYES,
Rossmore Lawns, Dublin 6W.