TAX REFORMER

AFTER 30 years in the cement and road metal business, CRH chairman, Dr Tony Barry is taking on a new challenge persuading the Government, to substantially lower taxes and restore the incentive to work.

Dr Barry, in his new position as head of the Irish Business and Employers Confederation (IBEC), will be leading a campaign aimed at securing a radical overhaul of the tax system. The major object of the campaign will be to bring about a sharp in crease in the income of the lower paid. He believes that the powerful lobby group, representing more than 6,000 businesses is in a prime position to help bring about such tax reform.

Such changes, whereby those earnings £7,500 to £20,000 a year, would gain major tax relief, will be a key plank in overcoming tax anomalies and increasing employment.

"The Government must lower taxes not across the board but at lower levels off income," says Dr Barry. Tax cuts should be specifically aimed at people earning between £7,500 and £20,000, he believes, giving a substantial boost to their take home pay, according to Dr Barry.

Acknowledging Government efforts in this direction in recent Budgets, he warns there is still a long way to go. "The Government has gone in the right direction, but has not moved far enough or quickly enough."

It seems difficult he says, to get the message across that such a move would be self financing. A higher tax take and a drop in the number of people claiming social welfare according to Dr Barry would offset the cost to the Exchequer. The Government, he says seems "fearful" of making a risky move.

Restoring the incentive to work is of primary importance to the economy, Dr Barry warns. Whether this should be done through the tax or social welfare systems is a difficult call, he says.

Dr Barry asserts that whether married or single, people should be at least 15 per cent financially better off in work than when claiming social welfare. Reform of the tax and social welfare systems, he believes should work towards achieving this outcome.

Dr Barry, who as chief executive helped shape CRH into one of Ireland's leading publicly quoted companies, is no stranger to the issues which affect Irish industry.

He is familiar with the heavy tax burden, the high cost of employment and the impact that sharp changes in the value of the Irish currency can have on a company's day to day operations.

Clearly focused on what tasks lie ahead of him at the helm of the business lobby group, he says he will be urging employers to take a higher profile role in meeting industry training needs.

Stronger links to co-ordinate industry wide training needs with the State training body FAS, he says must be established. "This could be achieved by making some, State and EU monies for draining available to businesses, through FAS. " Of the "colossal" amount of money currently being spent on training, he says "relatively little" is going into providing a high skilled work force.

With over 6,000 members, IBEC represents companies in a wide range of business sectors. Through its federated organisations, IBEC sees its role as supporting and protecting the interests of companies throughout the economy, including those in the textile industry, renderers, food and drinks groups, and the small business sector.

The organisation, according to Dr Barry is at its most effective when representing sectoral interest. However, he says IBEC must also be seen to promote a wider agenda in helping to formulate Government policy and to make a strong contribution towards social change.

He believes the organisation's vociferous stance has made a difference on issues such as the exchange rate, taxation and the environment over the years.

"Business lobbying has the effect of making the State and the Central Bank and Department of Finance very conscious of industry's problems" he says.

Over the past 15 years he says the Government has clearly gained a better appreciation of business needs. This has been helped by organisations such as IBEC which have pressed successive governments on how issues affect their members.

Lobbying is a central part of IBEC strategy and soaks up a vast amount of its, resources. The organisation spends almost, half of its £10.25 million annual budget on communications costs, incurred in publishing reports, carrying out surveys and generally keeping in contact with its members.

It estimates that circulating a bulletin to all its members costs £2,000 each time.

The remainder of the budget goes towards maintaining offices in Dublin, Cork, Limerick, Donegal, Waterford and Galway. The organisation, ranks as a medium size firm in itself, employing 150 full time staff.

Membership costs are determined by the number of employees a firm has on its payroll. For example, large companies could pay up to £50,000 per annum in subscriptions. By contrast, a firm with around 15 employees could pay around £500 per annum. IBEC says around 1,500 of its members are small businesses, employing less than 20 people.

Those who know Dr Barry say he is a formidable opponent, and someone who is very capable of pushing IBEC's agenda on whatever issues it tackles. Described as very pleasant and easy to deal with, sources say he will add credibility to IBEC's cause.