Lower CGT `charter for speculators'

The Budget decision to cut the Capital Gains Tax rate from 40 per cent to 20 per cent was described yesterday as a speculator's charter by the Democratic Left spokesman on finance, Mr Pat Rabbitte.

Mr Rabbitte urged the trade union movement to use the Partnership 2000 process to press the Government to reverse its decision when the 1998 Finance Bill comes before the Dail.

Referring to Bank of Ireland's recent takeover of New Ireland, he said it was unacceptable that four directors who had made profits of almost £5 million "on a speculative paper transaction" should be taxed at just 20 per cent. "Even with the Budget changes in the tax rates, a worker on the average industrial wage will still face deductions of over 50 per cent on every pound earned in overtime," he said.