The Construction Industry Federation (CIF) has called for the implementation of the remaining commitments of the Partnership 2000 tax reduction package in the spirit of social partnership. In its sectoral development strategy for 1999, which has been submitted to the Government, the CIF said the key budgetary strategy should be a significant real reduction in income tax, particularly for those on lower and middle incomes, employers PRSI and corporation tax.
Specifically it wants -
Single persons earning up to £20,000 to £22,000 per annum remaining below the threshold for the higher income tax rate.
A 5 per cent reduction in the lower rate of corporation tax on taxable income of up to £100,000 and a 4 per cent reduction in the standard rate.
A reduction in the 12 per cent rate of employers PRSI.
A doubling, to £6,000, in the first time house purchasers.
No change in VAT on construction.
On measures to boost the housing supply, the CIF said there should be additional public funding to increase the amount of suitable serviced residential development land and the early publication of a policy framework within which developers can put forward proposals for public private partnerships. To ensure an adequate supply of rented accommodation at reasonable rents, it wants up to 20 per cent of houses and 40 per cent of apartments in new developments to be available for sales to the investor market.
It has also called on local authorities to seek innovative solutions to their housing needs by using the public private partnership route combining innovative design, increased densities and public/private sector finance to provide affordable housing for purchase or rent by those on lower incomes. The submission noted there are clear signs of an emerging acute shortage of rented accommodation which is increasing rents. "This is creating problems for those who do not wish to own a home such as students, elderly, and expatriates.".
The CIF wants more efficient and effective planning and development systems and seeks the establishment of a task force to co-ordinate the delivery of manpower and training in the construction industry.
