Speaking at the launch of the Labour Party’s 2010 pre-budget programme, Deputy Joan Burton emphasised that Labour is putting jobs front-and-centre of their budget proposals with the establishment of an €1,150m jobs fund.

The full programme can be downloaded here.

Jobs

“Getting Ireland working again will be the key to recovery. The 2010 budget can’t be just about cuts – it must be about jobs. While accepting a net reduction in the 2010 of nearly €4.1bn, we are proposing to dedicate €700m to a job creation fund in 2010, and €1,150m in a full year. The Jobs Fund will:

– Include half a billion euro for labour intensive capital projects in a full year
– Support businesses with targeted measures, such as PRSI relief for jobs created
– Provide 60,000 extra training and work experience places to give people the skills they need for the jobs they want.
– Be allocated by a Cabinet-level Jobs Taskforce

“We have set out a budget programme which attempts to achieve the required outcome through a combination of 1) a €700m jobs package, 2) €1.3bn of public sector efficiencies, 3) tax reform amounting to €1.65bn and 4) a €300m investment in social cohesion.

Social Solidarity

“Getting people back to work must be the priority, but we also need to maintain social cohesion. Social solidarity is one of the key principles underpinning Labour’s budget proposals we would:

– Preserve basic social welfare rates.
– Maintain support for families by protecting child benefit
– Introduce targeted measures to tackle fuel poverty to off-set the impact of the carbon levy.

Tax Reform

“On taxation, our proposals emphasise the need to deliver on tax justice, putting a stop to the plethora of reliefs and loopholes that have dominated tax planning for wealthy people.

“In the tax debate, the marginal rate of tax for high earners has been allowed to dominate discussion rather than the average or effective rate of tax paid. In Ireland, one critical factor is the massive scope for high earners to reduce their tax bill to such an extent that they pay less tax than those on average incomes.

“While Fianna Fáil has promised to phase out many tax shelters, they still dominate our tax system. We propose that budget 2010 should see these shelters severely curtailed.

“I do not believe that high marginal income tax rates are conducive to growth and recovery. We need to rebuild the tax base in as fair a way as possible. Everyone contributes their fair share and, in that way, moderate taxation rates can be preserved.

“The Labour Party proposes to reform the tax system so that we move to a minimum effective tax rate for single earners earning over €100,000 – or couples earning over €200,000.

“Our programme aims to tackle the excessive claiming of deductions which reduces the effective rate of tax paid by many high earners. In effect, our proposals, if implemented, this would put a floor under the level of tax shelters a person can use.

Public Sector Pay Bill
“The achievement of targeted savings and public sector reform is a prize worth struggling for.

“An agreement of a unified public service based on flexibility, flat rate working on a standard day over the targeted period would send a strong message to international bond markets that Ireland is serious about reform and deficit reduction. This would both curtail the overall growth of our national debt and help to reduce the cost of servicing it.

“This would be win-win for everyone; a reformed, unified, more efficient public sector as opposed to an appalling vista of disruption, inefficiency and industrial strife.

“Such an outcome can only be achieved through negotiation.