The Government should use the forthcoming budget to increase personal allowances and give greater funding to training programmes, the Irish National Organisation of the Unemployed (INOU) has said in its pre-budget submission. The organisation says skill shortages will only be addressed if the Government provides more adequate funding for training programmes.
It says successful pilot programmes which have helped the long-term unemployed get back to work should be "mainstreamed" by the Government.
On the issue of tax cuts, the organisation says a large portion of the money available in Partnership 2000 should be used to substantially increase personal tax free allowances at the standard rate.
The organisation is strongly opposed to any reduction in the 48 per cent higher rate and says cuts of the standard rate should be "balanced".
The reason personal allowances should be increased - and given at the standard income tax rate - is because an increase for all workers would cost £250 million, whereas confining that increase to the lower band will cost £200 million.
The INOU's general secretary, Mr Mike Allen, said another important budgetary measure required of the Government was the abolition of the ceiling on employees' PRSI.
"The fact that workers on very high wages stop paying any additional PRSI contribution makes this levy regressive and unfair at higher wages," Mr Allen stressed.
The submission contains 59 recommendations and the organisation says this year's Budget is the best opportunity in decades to "bridge the gap between rich and poor".
Another call made by the group is for the Government to pay the minimum rates of assistance recommended by the Commission on Social Welfare.
Mr Allen also announced that the INOU has decided to support calls for a minimum wage of £5 an hour.
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