Budget 2012 Ógra Fianna Fáil Pre-Budget Submission
‘Protecting Our Future’
Ógra Fianna Fáil Pre-Budget Submission Budget 2012
‘Protecting Our Future’ Ógra Fianna Fáil Pre-Budget Submission Budget 2012 Submissions from: Éamon Quinlan (Úachtarán), Gerard Fogarty (Policy & Campaigns Director), John Regan, Paul Anthony Ward (Dublin Organiser), Ógra National Youth Conference, Donagh O‟Malley Cumann (UCC), North Tipperary Ógra and Clare Ógra. Page | 1
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 Introduction: 28th November 2011 With our generation and the one that follows us being burdened by a huge national debt, it is important that young people have a strong input into how the budget deficit is reduced. We have to be realistic in our approach to reducing the budget deficit. Austerity does not equate to savings. Essentially it must encompass increases in taxation, reductions in expenditure and measures promoting growth. Demand has to be increased in the economy. With the budget deficit at 10.3% of GDP, the Government‟s Medium-Term Fiscal Statement intends to reduce public expenditure by €7.7 billion and increase the tax take by €4.7b between the next fiscal year and 2015. The budgetary adjustment for 2012 must be €3.6b. The biggest difficulties in reducing our budget deficit is the deflationary effect on the economy and conditions set down by the European Commission and European Central Bank and conditions set under the funding programme of the European Financial Stability Fund. Like the National Recovery Plan, the statement acknowledges that in order to achieve the deficit target of 2.9% of GDP by 2015, in addition to increases in taxation and reductions in expenditure, that we must increase our GDP. The Government are expected to reduce the deficit in 2012 by €3.8b with €1.6b in taxation measures and €2.2b in expenditure measures. Uncertainty is one of the biggest hindrances to growth in the economy. The Government‟s Medium-Term Fiscal Statement, unlike the National Recovery Plan, is in reality, lacking in comprehensive clarity as to the Government‟s fiscal strategy for the next few years, and as such, fails to achieve its own objectives. However, it is expected that more clarity in regard to taxation and expenditure measures over the next three years (2013-2015) is to be presented in the budget statements. Instilling confidence across the economy has to be the one of the main objectives of the Government‟s fiscal policy. In addition to more clarity in regard to the exchequer finances, the Government needs to outline a plan for economic development and a new economic model. The Government‟s handling of the economy so far has been inappropriate in its ad hoc approach, and they will have to provide a long-term view on the budget days. Ógra are eagerly awaiting the publication of the comprehensive expenditure review and the estimates of receipts and expenditure for 2012 as well as the most recent figures on the tax receipts. Growth projections for 2012 differ amongst different agencies from between 1% and 2.3% in GDP terms. The Fiscal Statement projects growth to be 1.6%. The following are Ógra's proposed policy amendment measures and their projected yield for Budget 2012 to make savings in line with the Government‟s deficit reduction parameters. Projected Yield of Recommended Measures: € 3,855m* Page | 2
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 Section I - Responding to the Euro Crisis: Over the past two years confidence in the euro currency has been severely eroded. Monetary union under the Maastricht Treaty has failed as the measures set out lacked the political will for an effective monetary system. We need a comprehensive authoritative package of rules to deal with the current crisis and provide substantive monetary and fiscal co-ordination to tackle future challenges pro-actively as they arise. Fiscal union is required. This package must have at its core: price stability, financial stability and overall confidence in currency. Decisive and long-term action is required to save the single currency. The ad hoc, reactionary packages aimed at promoting confidence in the eurozone are no longer working and are not fooling the markets. This is evident with the developing debt crisis spreading across eurozone countries and the recent failed bond action in Germany. Euro Stability Bonds There are various options open to the eurozone regarding the issuance of Stability Bonds e.g. the full substitution by Stability Bond issuance of national issuance, with joint and several guarantees or the partial substitution by Stability Bond issuance of national issuance, with joint and several guarantees, amongst other options. The first option would have more positive effects on stability and integration and would abolish market and interest rate pressure on Member States. However, it is likely that this would require Treaty amendments. As well as alleviating the sovereign debt crisis it would make the financial system more stable and resilient to future challenges and provide more effective monetary policy. Other measures like quantitative easing are unlikely to be agreed to. Governance The eurozone requires extensive rules with regard to the governance of the euro currency and particularly stricter rules on fiscal and monetary policy with particular regard to price stability, financial stability and strengthening the euro currency. These rules need to be backed up by stringent Fiscal Approval Procedure which involves thorough scrutiny and surveillance of national budgets and their enactment. Where national governments fail to abide by the rules, enforcement procedures will first include revision of policies followed by disciplinary procedures including penalties and sanctions and an administration procedure in severe cases. The provisions under Article 136 of the Treaty on the Functioning of the European Union are adequate in our opinion to put such rules in place. Further amendments may be required by way of treaty protocol amendments. European Financial Stability Fund The EFSF and European Stability Mechanism are ultimately insufficient to deal with the pan eurozone debt crisis. Italy may need funding in region of €600 million from the IMF. We feel that EFSF will have to be extended by at least €1 trillion. With solvency restrictions on the ECB, the stability fund should be permitted to act as a guarantor and provide confidence in the European banking system. Page | 3
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 Contingency plan The Government will have to ensure that an effective contingency plan and that the requisite support is put in place in the event of the common currency collapsing. Commission budget cuts The budget of the European Commission has grown vastly in recent years to €129 billion this year with a 2.2% increase. This is causing increased difficulties on countries who are introducing austerity measures. The budget needs to be frozen for 3 years. Lowering Ireland’s Cost of Borrowing The Government must use its bargaining power to reduce loans with the ECB and attain cheaper funding and must be bold in tackling the eurozone crisis.
Section II - Taxation Measures: A permanent strategic restructuring of the tax system is required. A widening of the tax base is crucial. Increases in income tax in particular are deflationary. The following recommendations are intended to broaden the tax base and make funding more sustainable in the long-term and progressive. Domestic Utility Levy A temporary levy to be put on all private residences. The levy shall be €250 in the case of principle private residences and €500 in the case of non principal private residences. This levy will replace the television license but €150 of it can be ring-fenced for RTE with the remainder to be provided for water and broadband infrastructure. The television license has become irrelevant as most houses have at least one television set and the scale of fraud and cost of regulation is unnecessary waste. As such we feel that this will increase the amount of money raised from the television license and lower costs. A graduated payment system should be put in place to assist low income earners and administration can be continued by An Post to save administration costs. The current NPPR levy is charged on a self-assessment system. We propose that the Property Registration Authority database be used to ensure full compliance with this new levy. A site valuation procedure and water metering will have to be put in place as soon as possible in order for this levy to become a value based property tax and water charge, also taking into account new houses where stamp duty has been paid. This will lead to the gradual removal of stamp duty on real property. Money will be given to local authorities with the Local Authority Grant to be reduced proportionately. Yield: €450m & €90m Universal Social Charge Page | 4
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 While the income levy was lauded for being very progressive the USC was very regressive in that it raised tax for low-income earners and brought many more into the scope of the tax while reducing the burden for many on higher incomes. We are proposing a decrease in the lower rate of USC and increase in the higher rates to reverse this, as follows: Total income: Rate: Below 10,036 0% 10,037-16,016 2% 16,017-75,036 6% 75,037-174,980 8% 174,981 and above 10% Yield: €400m Environmental Levies Increase the Plastic Bag Levy to 50c. Extend the levy to all carrier bags made of plastic. Yield: €10m Introduce a Bottle & Tin Recycling Scheme whereby all plastic and glass bottles and jars and tin cans etc. will have a levy attached of 5c per item which in turn will be refunded when the item is brought to local recycling centres. Local authorities will be required to provide recycling centres to facilitate this scheme and encourage recycling of waste. The infrastructure will cost €10 million. Yield: €40m Value Added Tax We are urging the Government to avoid the front-loading of the higher rate of VAT increase and to follow the path set out by the National Recovery Plan in this regard. The current higher rate must be maintained until January 2013 as per the NRP as the front loading will erode consumer confidence and lower much needed demand in the economy and as such won‟t return the expected VAT take. It will particularly affect the January post-Christmas sales. The ESRI have commented that such an increase will be largely regressive. Ógra proposes a transfer to the higher rate of VAT on sugar and all items containing sugar e.g. confectionary, drinks etc, whether consumed in a retail outlet or a restaurant etc. This a key policy in regard to health promotion, to reduce the amount of sugar consumed particularly by children. We are also proposing a reduction in the rate of VAT on fruit juices, smoothies and bottled water to zero. Yield: €40m There are many distortions across the VAT code; a wholesale review of VAT rates would be welcome. Page | 5
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 With high costs affecting the most vulnerable organisations in our state, we are proposing to allow schools and registered charities to claim back VAT on their costs. Deposit Tax With many people saving money and a lack of confidence and demand in the economy, we propose an increase in Deposit Interest Retention Tax from 27% to 30%. Yield: €25m Income Tax While there has been a commitment not to increase income taxes, we are concerned that with reversals on other commitments and the possibility of lower receipts at the end of November that the Government will not commit to this. Income taxes are the most growth distorting taxes after corporation tax. Even the OECD recommends limiting income tax increases. It is however necessary to adjust the income tax system to make it more progressive. Current bands and tax credits must be maintained. As such we have outlined changes above in regard to the USC. We further propose an increase in the higher rate of income tax back to 42%. Yield: €300m As there will become greater demand on the Social Insurance Fund, we also believe that Pay Related Social Insurance should be chargeable on all income, including passive income, across all PRSI classes. Yield: €400m Corporation Tax We must increase our levels of Foreign Direct Investment. The low rate of corporation tax is central to this and must be maintained at 12.5%. Domicile Levy The domicile levy only brought in €1.48 million since its enactment. There are approximately 440 high-net non-resident taxpayers who should have been liable to the levy. We urge the Government to complete a thorough review of the levy and relax the conditions applicable to it to target more of the individuals concerned in 2012 and raise the levy to €300,000. Yield: 12m Capital Taxes As capital taxes, particularly Capital Gains Tax are substantially similar to income tax; we feel that in order to make these taxes more progressive, a second, higher rate should be introduced on gains/acquisitions of €80,000 or higher of 40%. As agricultural relief and business relief are similar and many, who don‟t qualify for Page | 6
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 agricultural relief, qualify for business relief, the two reliefs should be merged. The CAT exemption thresholds must be reduced largely, particularly considering the deflation experienced by the economy of the past few years. Yield: €250m Excise & Carbon Taxes Excise on fuel and cigarettes should not be increased to avoid loss of demand due to smuggling and cross-border trade. Health promotion is important and we feel that the issue of below cost sale of alcohol needs to be addressed as does the decline in the vintner‟s trade. We propose a 25% reduction in excise on alcohol for pubs and restaurants to be offset against a proportionate increase in duties for off licenses. We propose an increase in the Carbon Tax beyond the NRP to €40 per tonne by 2014. Yield: €400m by 2014 Motor tax must be maintained at its current rate. Miscellaneous Provisions The Government must reduce relief landlords receive on loan repayments for residential property to 50%. Yield: 95m The relief for pension contributions should be curtailed to 30%. Yield: €100m Finance Act (No.3) 2011 provided for changes in the tax code following the coming into force of the Civil Partnership Act 2010. However there are approximately 12 tax provisions which do not provide tax equality for civil partners. Civil partnership is a structural barrier to achieving full equality in the area of taxation. We therefore urge the Government to follow our recommendations in our marriage equality document for social and tax equality. Total Yield for Taxation Measures: €2,662b
Section III - Current Expenditure Measures Job Creation & Growth: With unemployment at 14.4% (CSO, October 2011) the Government needs to encourage demand and job creation in the economy. Page | 7
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 JobBridge JobBridge has failed to tackle the jobs crisis as it was projected too. It has permitted some companies to exploit it as a mechanism for cheap labour. We propose the merging of JobBridge, TUS, Rural Social Scheme, National Internship Scheme, etc, to be replaced with a €100 stipend, on top of the welfare payment, for work and training in community sector, enterprise or public sector internship. The merging of the existing schemes is the key to efficiencies and lower administrative costs. The scheme should allow for 25,000 additional places by end of 2013 Cost: €40m The Government must legislate to re-establish the Joint Labour Committee (JLC) Wage Setting Mechanism. This must be done according to the proposals outlined in the Report of Independent Review of Employment Regulation Orders and Registered Employment Agreement Wage Setting Mechanisms. The JLC is an essential mechanism for protecting the incomes of the lowest paid & most vulnerable workers. Most relevantly, this Independent Review stated that cutting the wages of the low paid will not lead to a significant increase in employment. Promoting Enterprise The Government must maintain the tax relief for start up companies. While Ireland has one of the most administratively low corporation tax regimes in the world there is still an overcomplicated regime for starting up companies. The Government needs to follow international models and establish a one-stop-shop system for start-ups which will reduce costs, administration and time. A radical and extensive €500m state loan guarantee scheme needs to be put in place as soon as possible to provide credit for new traders and traders who are coming under increasing pressure to cover their current expenditure. The Government needs to take the challenges experienced by businesses seriously and tackle the high rents being charged by commercial landlords. Businesses need to lower costs and lower prices if they want to remain competitive. We oppose plans to extend the maximum retail store size to allow the entry of „hyper-markets‟. In addition to the commercial rents review a commercial rates review needs to be carried out with national regulations if necessary. This is a serious challenge for the retail sector and the Government really needs to be radical in its approach. Driving Exports and Intra-Community Supplies While exports are stronger and national product remains quite low, the indigenous economy is dangerously weak. We must stimulate our export led growth and encourage indigenous businesses to target international markets. Simplifying the complex VAT rules will remove a Page | 8
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 key barrier to this. To reduce costs for businesses, Ógra are proposing tax relief at higher rate of VAT on advertising Irish businesses and Irish products in international markets. Businesses must also be encouraged to target emerging markets and our double-taxation agreement network must expand as required. Innovation, Research & Development and Intellectual Property We must promote innovation and research and development amongst our indigenous businesses and start-ups and promote Ireland as a centre for R&D. Gross simplification of the rules regarding R&D grants and tax credits must be made in order to encourage its use. Ógra proposes the introduction of a lower, 10% corporation tax rate for profits from patents; similar to the UK‟s proposed “Patent Box”. We must move fast to ensure that we remain competitive as a location of choice for international and indigenous innovators. As the rate proposed in the UK is 10%, a similar rate in Ireland is necessary. Costs: €10-12m Total Yield for Job Creation & Growth Measures: €-8m
Public Sector Reform: Rationalisation of State Bodies Ógra strongly welcomes the proposals by the Government in relation to public sector reform. However they are far less ambitious than what was promised in election manifestos and leave a lot to be desired. The reform agenda needs to be more comprehensive. Introduce a nominal charge for all visitors (excluding retired and children) to state assets, e.g. National Museums, National Gallery etc., for €2.50 minimum. This measure is not to raise money but to cover costs associated with maintenance and reduce the grant to these assets. 5% cut to RTE taking into consideration expected greater footfall from the utility levy with funding ring-fenced for RTÉ. Yield: €10m County Enterprise Boards to be merged in line with VEC rationalisations. The HEA should examine the rationalisation of third level institutions to improve quality of education and create efficiencies. Merge the 30 Education Support Centres into the Teaching Council. Abolish Regional Authorities and Assemblies. Merging of County Councils from 36 to 25: e.g. Carlow & Kilkenny, Limerick County & City, Waterford County & City, and Tipperary North & South. We call on the reformation of a more democratic Seanad rather than abolishing it. Total Yield: €50 Page | 9
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 Public Sector Pay We welcome measures put in place by the Government to reduce civil service numbers and savings from ministerial transport. The Government must ensure that efficiencies and rationalisations are pursued rigorously but safeguard frontline services. We call on the Government to enforce the provisions of the recent constitutional amendment and reduce the wages of the judiciary in line with other reductions across the public sector. Yield: €5.5m Defer pay increments due to all civil and public servants for 3 years. Yield: €250m. €500m over 3 years Lump Sum payments upon retirement and termination should be capped at annual pension rate and fully liable to income tax and the USC. Cap all public sector pay, lump sums and pensions at €150,000. Yield: €3m Require all civil servants and public servants (teachers, nurses, doctors etc) to work an additional 1.5/2 hours a week. This will reduce the numbers that need to be recruited later and cuts overtime bill, substitution bill and supervision bill. Teachers would be expected to teach, Gardaí expected to be on the streets, doctors expected to be seeing patients and civil servants expected to be working. This will require a renegotiation of the Croke Park deal which we feel will eventually occur during the lifetime of the agreement anyway. Yield: €500m over 3 years Remove exemptions to minimum retirement age for Gardaí, teachers and nurses. Incentivise early retirement schemes for all civil and public servants to save the long-term pay bill. Staff rationalisation and efficiencies are required across third level. Freeze pay for all public representatives for 5 years. Cuts in pay have been taken by previous Government and this Government, but more needs to be done. Cap all lump sums etc. for retiring politicians or those who lose ministerial positions at €80k, subject to income tax, PRSI and USC. Remove the entitlement for independent TD‟s and Senators to obtain a “party leader‟s allowance”. Introduce a pension cap of €1,000 a week for all public office pension holders, liable to USC and make further expenses reform so that they are vouched fully transparency. Yield: €6m We feel that members of the Oireachtas have an elaborate expense regime covering travel, constituency office support, phone bills, printing, and postage as well as having parking, office space, equipment, personal staff as well as other Oireachtas administrative staff, subsidised food and other perks. We propose a 50% cut across the board for all elected members to bring their wages more in line with the average industrial wage. This reduction will also affect Government Ministers, Ministers of State, An Taoiseach and the Page | 10
Ógra Fianna Fáil Pre-Budget Submission Budget 2012
President who all have additional benefits including more staff and drivers. The intention of this decrease is to save money for the exchequer, return some public confidence to the political system and bring public representatives' standard of living closer in line with that of the electorate. Yield: €7m Government officials estimate the public service pension bill will increase by 50 per cent over the next seven years, double in 15 years, and almost treble by mid-century. In other words, it would increase from €2 billion in 2006 to some €6 billion in about 50 years. These figures do not factor in future pay rises. We therefore propose the change defined benefit pension scheme to career average payment and make them liable to the USC and remove pay parity.
Total Yield for Public Sector Reform: €450m
Banking: Regulatory Toolkit To ensure appropriate scrutiny and surveillance of financial institutions, we propose that the regulatory directorate of the Central Bank of Ireland is given wide ranging powers as part of their investigative toolkit to conduct surveillance, search, seizure and questioning functions etc. as part of their ongoing functions. Debt-management and other related financial service companies need to come under the scope of the Financial Regulator. Banking Inquiry We feel that a necessary element to reinstalling public confidence in the political system and in the economy is to fully address the issue of how our current crisis arose. Ógra have previously called for a full comprehensive independent banking inquiry. The Government has already conducted a behind-the-scenes inquiry culminating into three lengthy reports. It is necessary to put a line under the issue and conduct a full parliamentary inquiry into the matter. While it is widely held that the Oireachtas cannot conduct parliamentary inquiries on foot of the Supreme Court decision in Maguire v Ardagh [2002], we are of the opinion that the decision does not revoke that power of inquiry. The Supreme Court did not address the issue as to whether the Oireachtas had the inherent power to conduct such inquiries it merely held that an inquiry may not make adverse findings which adversely affect the good name of any person, breaching their fundamental enumerated right under Article 40.3.2 of the Constitution. We are of the opinion that while legislation will be required, a constitutional amendment will not be required to conduct an inquiry into the banking crisis once the findings of its report protects from unjust attack the good name of every citizen.
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Ógra Fianna Fáil Pre-Budget Submission Budget 2012 Supporting Home-Owners Ógra propose the establishment of a Debt Settlement and Mortgage Resolution Office to provide an independent, non-judicial debt settlement system for persons struggling with personal debt and those in difficulties with their mortgage based on the recommendations of the Law Reform Commission‟s Report on Personal Debt Management and Debt Enforcement of last December and the associated draft Personal Insolvency Bill and include the growing problem of mortgage debt.
Foreign Affairs: There must be no cut in Overseas Aid and the Government must recommit to raise this budget expenditure to 0.7% of GDP by 2016.
Social Protection: Rates Ógra are urging the Government to protect social welfare rates in the budget to protect lower income families. Efficiencies need to be found in the administration of welfare, fees (e.g. to GP‟s), online applications, rigorous enforcement against fraud and review of conditions to restrict fraud. Research by Barnardos has found that many children in low-income families are not even receiving 3 meals a day. The focus of social protection must be making the standard of living for people on low incomes much easier. Fuel Allowance Research by the Society for the Saint Vincent de Paul has shown that older people are able to meet their cost of living however they come under difficulty during winter. This is due to the loss of Christmas bonus, increasing fuel costs and increase in cold weather. We propose an increase in the fuel allowance by €30. Cost: €11m Miscellaneous One fundamental inequality in the welfare system is the barrier to self employed people regarding sick pay. We feel that this needs to be addressed. We also urge the Government not to transfer the burden on paying sick pay to employers, particularly small businesses. If the Government are committed to introducing this measure, the maximum employers should be required to pay is one week. In order to protect low-income earners further, we are proposing to make all tax credits refundable. This will address the regressive nature of non-refundable tax credits whereby high income earners may apply them all and low income earners will not be able to put them against their tax liability due to the relative size of their tax liability. Back to school allowance must be processed more speedily to ensure that families can pay for school materials. Page | 12
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 We urge the Government to reintroduce Back to Work Allowance to promote employers to create jobs and lower their wage liability for the first 18-24 months of employment. We urge the Government to consider merging different payments to streamline the Department of Social Protection and reduce administrative costs. Yield: €150m by end of 2013 In particular, we propose that Jobseekers Benefit and Jobseekers Allowance are merged leading to graduated payments, for example, for the first 12 months, a recipient would receive €188, for the next 3 months they receive €180, 3 months following that they receive €170, and so on down to €150. This is a labour activation measure to encourage people to keep seeking a job or training. Anyone who goes into training course should receive the full €188. Yield: €150m saving by 2013 Ógra propose the taxation of Child Benefit to be applied at source alongside tax credits. Low income and non-earning parents will be required to pay nothing and the measure will be graduated increasing until someone pays 40%, as per the Commission on Taxation report. The benefit would therefore increase for low-earners and no-income earners, stay more or less the same for some parents and would be cut for many others. Yield: €300m The Department should work with the National Asset Management Agency for the provision of social housing schemes in help meet the strong demand for units and introduce probation period for holders to ensure good standards of maintenance with regular inspections and possible removal of entitlement. Total Yield for Social Protection: €439m
Education & Skills: Third Level Funding & Student Support We must continue to invest in people and safeguard equality of opportunity in education. With regard to student support the Government must review the means test for the maintenance grant and must not reduce the grant. It must not be removed for postgraduates. This closes entry to fourth level for many low income families, particularly into the teaching profession and will create a large funding gap for third level institutions, making a big problem a lot worse. With the welcome enactment of the Student Support Act, the Government must ensure that the grant is distributed early in the college year to provide for rent and materials. It is clear that the free fees system does not work. The money invested into universal free fees could be much more progressively invested into helping low-income families enter third and fourth level and provide a good quality, internationally recognised third level sector. Ógra Page | 13
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 eagerly awaits the Higher Education Authority report on third level funding. We urge the Government to stand by their electoral pledge in this budget and consider all options, and work with all interest groups to create a fair deal for student contributions. Ógra is opposed to the universal introduction of tuition fees and to caps on student numbers. Access to quality education is a right that must be maintained. Protecting Education We must continue to aim towards a knowledge-based economy as the basis for our new economic model. The Government must protect class sizes and pre-school programmes and endeavour to ensure that every child has a Leaving Certificate and as such, funding must be maintained for the school completion programme, home school liaison scheme and educational welfare. The growing cost of school materials needs to be addressed. Regulations need to be put in place to ensure that publishers maintain their current editions for several years. We are seeking a ban on retired teachers returning to work to act as substitute teachers, when there are many newly-qualified teachers who need the experience to start their career. We call on the Minister to develop a new sports grant mechanism to target primary schools with the aim of encouraging engagement with sport from an early age and to introduce compulsory driving tuition to all citizens over the age of 16 to promote road safety.
Health & Children: We are opposed to charges on medical cards as well as increases in prescription charges. The automatic entitlement to a medical card for all conditions must be removed. In addition to changes outlined above in public sector reform, other efficiencies need to made across the HSE. All payments to GP's need to be cut particularly from nursing home medical card patients. The grotesque overpayment of consultants needs to be cut. All other aspects of the health service budget must be maintained. We vehemently oppose any cuts to front line health services as any reduction will have a serious impact on patient care. We fervently oppose the closure of any specialist care unit around the country. The HSE need to put in place an action plan/strategy for the health service. Ad hoc closure of services is not in the public‟s interest. However if services are rearranged, so that they are operated in a more efficient manner, it could be to the benefit of the public, but the HSE must outline their long-term view for all local services. In particular, mental health services must be maintained with the introduction of 24-hour mental health services. Ógra condemns the failure to date of the Minister for Children and Youth Affairs to outline her plans to provide additional resources for social workers to cope with the expected increase in Page | 14
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 demand on social work services with the introduction of mandatory reporting of suspected child abuse. The HSE needs to promote more coordination with voluntary community organisations in providing patient transport and community care. Total Yield for Health & Children Measures: €150m
Agriculture, Energy & Natural Resources: We strongly oppose the proposed septic tank levy which is an attack on rural Ireland. We call on the Government to implement the key recommendations of the Food Harvest 2020 Report which will lead to the creation of many new jobs in agriculture and food and to take advantage of the removal of milk quotas in 2015 by reforming taxation policies to support investments for farming and dairy processing. The Government needs to put measures in place to ensure the thorough retrofitting of houses. Sustainable Energy Authority of Ireland grant schemes must be maintained and guaranteed for at least 5 years. Energy efficiency reduces energy costs and creates jobs and boosts demand. It must be made mandatory on all local authority and cooperative housing schemes as well as units availing of rent allowance. Mandatory retrofitting could be operated by imposing conditions on applications for all housing assistance schemes or other means, for example, as a precondition for registration on the Private Residential Tenancies Board or imposing penalties on landlords who don‟t retrofit their housing units. A graduated scheme needs to be put in place for the payment of these services to allow low-income earners access to the scheme. We propose a cut in the Energy Research Programme from €14m to €7m. Yield: €7m To improve the efficiency of public transport and make it a more effective alternative to driving we are proposing the renegotiation of the National Transport Public Service Provision Payments to make them 100% accountable for delays etc. Total Yield for Agriculture, Energy & Natural Resources Measures: €7m
Justice & Defence: We must protect local Garda Stations. Cutting these local services does not merit the minimal savings. As outlined above we need to remove early retirement for Gardaí and ensure there is more Gardaí on the streets by moving Gardaí out of administrative jobs and transferring other public servants to those posts. The future of the Garda College needs to be examined as Page | 15
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 soon as possible and a cost-benefit analysis completed on closing the college versus training new recruits. There should be a 10% cut in Defence Force numbers by 2013 due to natural wastage and early retirement scheme. Yield: €25m a year, €40m in total Total Yield for Justice & Defence Measures: €25m
Section IV - Capital Expenditure Measures: Ógra proposes a cut in investment in roads over the 5 years of the Government‟s Capital Expenditure Programme (Page 16 of Programme) from €2,931 million to €1,800 and the transfer of €300m into jobs, enterprise and innovation schemes over the 4 years, to invest into city and county enterprise boards and build up local, sustainable jobs. €300m to be transferred into the Department of Education and Skills over the 4 years to build and retrofit schools, return summer works schemes and build third level institution facilities that the Government cut, in particular DIT. Yield: €500m+ over the 4 years All roads programmes except priorities should be scrapped with the savings to be invested in upgrading the current road network to make it safer and more efficient and repair winter damage and upgrade street lighting. Broadband In addition to the funds allocated for broadband, the additional funding ring-fenced from the domestic utility levy for broadband should be invested in high speed broadband all over the island by 2014. This is one of the most important infrastructure requirements for promoting enterprise, innovation, research and development, the smart economy and attracting FDI and it must be put in place as a priority. Total Yield in Capital Expenditure Measures: €180m
Conclusion: Since the day it was elected, the most striking feature of this Government has been its emphasis on spin rather than substance. The long list of very specific promises made to communities and interest groups around the country has been steadily and cynically abandoned. For Ógra, the complete betrayal on education has been a major concern, but the betrayal of voters is obvious in almost every Department of Government. The 2011 General Election was a different election. It was fought on plans to solve the economic crisis, and it was an election like no other where false promises weren‟t necessary. Page | 16
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 We are calling on our members to play their part in highlighting local promises that are being broken and also to take a role in highlighting the campaign to uphold election promises at a national level. Visit www.ogra.ie/brokenpromises. Ógra recently launched our campaign against cuts in education and student support and increases in student contributions. Investing in our future has to be a key policy of the Government. We will campaign rigorously to protect the measures outlined in this submission. The relentless cynical kite-flying exercises on budget cuts need to end. Scaremongering the public only causes further damage to growth. As the budget is expected to be split into two segments this year the Government need to step up to the plate and fill the gaping holes in the Medium-Term Fiscal Statement to provide certainty and confidence to the economy. We urge the Ministers to enact the provisions of our costed, fair, alternative budget and ensure the speedy enactment of the Appropriation and Finance Acts to maximise savings in the 2012 fiscal year. This budget isn‟t about easy savings; it‟s about protecting our future.
About Ógra Fianna Fáil: Ógra Fianna Fáil is a progressive, political youth movement based in communities and third level institutions all across the island of Ireland. It is the youth wing of Fianna Fáil the Republican Party, but maintains autonomy and independent policies. It presents young people with the opportunity to get directly involved in politics and political activity. Members are actively involved in debating and developing policy on a range of local, national, European and international issues and campaigning on issues that affect young people and their local communities. Membership of Ógra is open to anyone between 16 and 30. Social activities are important in Ogra and the National Youth Conference and Summer School, which take place every year, as well as many other national and local events, are exciting and interesting both politically and socially. It was visionary, idealistic and committed young people who founded Fianna Fáil, under the leadership of Eamon de Valera in 1926. What followed was a momentous national movement encompassing the ideals of a united Ireland, social and economic advancement and equal opportunities. The next decade will present many more challenges for Ógra, but that is what Ógra is all about: meeting challenges. The vibrancy and enthusiasm of youth is a unique thing that should be cherished and used to its full potential. Ógra will continue to play a defining role in the future of Ireland‟s largest political party and in shaping the Ireland we want to live in. Your future is in your hands Page | 17
Ógra Fianna Fáil Pre-Budget Submission Budget 2012 Contact Us: Ógra Fianna Fáil, Áras deValera, 65-66 Lower Mount Street, Dublin 2. (T) +353 (0)1 676 1551 (E) info@ogra.ie (W) www.ogra.ie www.facebook.com/ografiannafail www.twitter.com/ografiannafail
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