Sir, - Despite the objections of Fintan O'Toole, Garret FitzGerald and Joan Burton, the Progressive Democrats plan to press on with their proposals for radical tax reform.
The achievement of two tax rates of 40 per cent and 20 per cent over a five year period is within our means, and will follow on from the fundamental reform in the taxation system implemented by our party during our period in Government between 1989 and 1992.
We are committed to bringing spiralling public, spending under control and intend using the proceeds of economic growth to fund tax reform proposals. Our participation in any Government will be contingent on the preparedness of other parties to accept that unless high taxation is tackled, we cannot hope to translate our sound economic fundamentals into real, sustainable jobs.
The only way to tackle long term unemployment is to reduce the cost of employment and create the incentives for people to come off the dole and participate in our economy. Our policies seek the achievement of greater social justice in our society through the creation of a pro jobs, pro enterprise economy which puts the emphasis on opportunity and not on dependency.
There an huge competitive challenges ahead of us, and web must be mindful of the fact that, by the end of the century, we will not be able to rely on huge subventions from the EU to cushion our economic performance.
Our party has looked to the economic transformation which has been wrought in New Zealand in recent years as an example of what can be achieved here; yet your commentators seem to be less than convinced.
Perhaps they are not altogether with the extent of the government there.
New Zealand has an economy much like our own, and has been to create 180,000 full time jobs, with the assistance of low taxes on employment, in the last three years. Its unemployment rate stands at 6.7 per cent.
Among the social services its citizens enjoy are free in patient treatment in public hospitals, free home nursing and extensive state support for pre school education.
It proves the Progressive Democrats point that low taxes one work and good social services are not mutually exclusive.
Now who's afraid of tax reform? - Yours, etc.,
Leader,
Progressive Democrats,
Dail Eireann,
Dublin 2.