The NESC's view of the new agreement
• Overall level of tax to remain steady or even rise slightly. Tax reliefs and shelters to be closed, or restricted to the standard rate of tax. If there is any scope for tax relief in the years ahead it should go to the lower paid.
• A clear focus on combatting social exclusion including rising welfare and old-age payments, a new tier of income support for children and the provision of free medical cards to all children.
• Government investment spending to be maintained at a high level. This sets the basis for future economic growth.
• A much greater focus on planning spending and ensuring value for money.
• Wage increases based on the norm in our EU trading partners to ensure that competitiveness is maintained.
• Much greater use of profit and gain-sharing throughout the economy. This would allow employees to benefit in the good times but not damage competitiveness when times are tough.
• Benchmarking agrement on public sector pay offers substantial increases. These should only be granted in return for significant increases in flexibility and productivity.
• New measures to hold down inflation. No major excise increases in the Budget and measures to boost competition in key sectors.