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Dáil
‹ Ceisteanna—Questions Oral Answers. - Programme for National Recovery.

ICTU proposals under the recovery programme

Summary

Rabbitte questioned whether workers were sharing economic gains and pressed for tax reform and a timetable for social welfare changes. The Taoiseach said tax and welfare proposals would be considered for the Budget, other issues would be discussed with ICTU before then, and defended workers’ increased take-home pay.

asked the Taoiseach if he has any plans to meet the ICTU before the Special Delegate Conference of Congress in January, 1990; if he accepts the thrust of the Congress submission A New Phase for the Programme for National Recovery — Sharing the Benefits; the elements of the Congress submission which are to be given priority by Government for the remainder of the lifespan of the programme; and if he will make a statement on the matter.

Comment on this

I met representatives of the Executive Council of the Irish Congress of Trade Unions on 24 November 1989 accompanied by the Ministers for Finance, Industry and Commerce and Labour.

We agreed at that meeting that the recommendations made by Congress in the area of tax reform and social welfare would be considered by the Government in the context of the 1990 Budget.

We also agreed that the other issues raised by Congress would be considered at official level with the objective of a further meeting between Congress and the Government before the budget.

Comment on this

Does the Taoiseach accept it is the thrust of the thirty point programme submitted to him by the ICTU entitled Sharing the Benefits that workers have not shared in the benefits that have accrued in the economy as a result of their wage restraint, and that at a time when profits are spiralling at a rate we have not seen previously, workers are not sharing in those profits? Let me ask him about his commitment to tax reform. We know about the commitment to the 25 per cent base rate ultimately, but I am referring to the specific demand of the ICTU. Is he in sympathy with the demand of the ICTU to broaden the tax base to include companies, the self-employed, professionals, farmers and so on, so that the burden on PAYE workers can be reduced?

Comment on this

We will be meeting the ICTU again about these matters before the budget. I would like to point out to the Deputy that statistics show clearly that, apart from the general benefits which flow to the economy and therefore enrich workers' participation, the take home pay of workers and employees generally increased during the period in which the national economic programme has been in operation by between 3 per cent and 7 per cent. I cannot understand what the Deputy is talking about when he refers to tax reform which would extend taxation to companies, the self-employed and professional classes. Very considerable extensions have been made in all these areas by this Government and their predecessors. In particular I would remind the Deputy that we have extended an effective tax régime for the first time to the self-employed and the farming community.

Comment on this

I am disappointed if I am to take it that the Taoiseach has no intention of increasing the tax take from the categories I referred to. If he had to pay a mortage he would appreciate that the pay increases he referred to are not in line with——

Comment on this

I do not know why the Deputy misinterprets what I say. I did not say I had no intention of extending anything anywhere.

Comment on this

Let me ask the Taoiseach whether in respect of a category who do not receive wages he intends to respond to the ICTU demand for a timetable to phase in the introduction of the commission's report on social welfare.

Comment on this
Seán Treacy An Ceann Comhairle Independent

The Deputy is perhaps raising a number of extraneous matters.

Comment on this

It would be very helpful and would betray a great deal of maturity if the Deputy would leave these matters to be discussed between the Government and the ICTU. We have a very satisfactory, amicable, co-operative, constructive relationship and the Deputy can quite safely leave these matters to be discussed between us in the excellent spirit we have developed between us.

Comment on this
Seán Treacy An Ceann Comhairle Independent

Deputy Jim Mitchell.

Comment on this
Seán Treacy An Ceann Comhairle Independent

Deputy Mitchell has been called. Deputy Rabbitte, please obey the Chair.

Comment on this