FG warns third tax rate is not the solution
Wednesday November 04 2009
FINE Gael leader Enda Kenny has warned that the trade union proposal to introduce a third tax rate for high earners is not the solution to solving the country's public finances crisis.
The Irish Congress of Trade Unions wants a third tax rate of 54pc for workers earning more than €100,000 as part of the solution to solve the public finances deficit.
Mr Kenny repeated his Party's belief yesterday that the Government can't tax the country back to economic recovery and tackling waste in public finances should be Finance Minister's Brian Lenihan's key objective in the December 9 Budget.
The Fine Gael leader was speaking at the launch of a nationwide tour aimed at hearing the views of business people at public meetings in Dublin, Cork, Galway, Waterford and Limerick.
The Party's economics team -- including George Lee, Richard Bruton, Leo Varadker and Simon Coveney -- will use the views of business people to inform its proposals on how €4bn can be found.
Mr Lee will chair the meetings, but Mr Kenny refused to say if his appointment was a signal that Mr Lee will be promoted in a frontbench reshuffle.
Mr Kenny said that if it comes to a balance between job protection and job losses, the protection of frontline jobs and services is critical.
"We've made the point that we do not see increased taxation as a solution to our problems. The real issue here is what measures you can put in place to get people back to work, to cut our costs, to increase our competitiveness and put our focus back on Ireland working and harnessing that potential and young energy that's out there," Mr Kenny said.
His party has already proposed €1bn in public sector savings by introducing a 5pc pay cut for everyone earning over €80,000, a freeze on all increments and bonuses and 15,000 voluntary redundancies.
Meanwhile, the Fine Gael transport spokesman called yesterday for private bus companies to be allowed the use of CIE's network of garages and maintenance depots.
Fergus O'Dowd said that government plans to introduce more competition and routes in the Public Transport Regulation Bill are "flawed" and do not provide proper competition because Dublin Bus and Bus Eireann will be allowed hold onto routes for at least two years after the bill becomes law.
- Aidan O'Connor and Paul Melia
Irish Independent
