THE provision of a national basic income and major tax reform should form part of a new policy approach to tackling poverty, on employment and social exclusion, according to the Conference of Religious of Ireland (CORI).
In its socio economic review for 1997, published today, CORI's Justice Commission argues that radical measures need to be taken to combat deepening divisions in Irish society. A tax free basic income for each Irish resident combined with a package of employment and taxation policies would prove both cost effective and successful in reversing this trend, it claims.
The 98 page document, entitled Planning for Progress, is critical of existing policy which has led to increased economic growth without narrowing the poverty gap. Citing worsening social problems such as drug abuse, long term unemployment, crime and family breakdown, it asks: "If Ireland is supposed to be doing so well then why are there so many problems? Why is the feel good factor missing for so many people?"
Central to a new policy approach, it argues, is a redefinition of the concept of progress which at present focuses too narrowly on economic growth.
Traditional measurements of progress, such as GNP or GDP, should be replaced with more comprehensive and integrated indicators which acknowledge, among other things, the right of every person to have sufficient resources to live life with basic dignity; recognition that nature and its resources are for the benefit of all people; the need for environmental sustainability; and the right of all to participation in shaping decisions which impact on them.
While the Government and Irish public should, through open debate, decide what constitutes progress, CORI's Justice Commission suggests that the overall purpose of economic policy would be to ensure full citizenship for all.
"Full citizenship is not simply about political rights such as the right to vote, to equality before the law. It is also about rights such as the right to adequate income, to meaningful work, to participation in society," the report explains.
A broad range of policy areas is covered in CORI's new strategy, including taxation, rural development, environment, housing and education. One of the main proposals is an unconditional basic income, aimed at ensuring no individual falls below the poverty line. It would be paid directly into each individual's bank, building society or post office weekly, and, under 1997 estimates, would range from £21 for people up to 17 years of age to £82 for people aged 80 or over.
Accompanying this initiative would be a reform of the taxation system involving the abolition of employee's PRSI and all income levies. Instead, there would be a single tax rate of 50 per cent on all money liable for income tax, and employers would be obliged to pay 8 per cent of payroll costs to a proposed Social Solidarity Fund and other public services. This employers' payment would amount to only three quarters of the current payment of employers' PRSI.
The report says these proposals would eliminate the poverty and unemployment traps.
While the basic income proposal would cost an estimated £9.3 billion, it would lead to a variety of Exchequer savings in relation to administration costs and existing expenditure on income support schemes. An expected increase in economic activity, furthermore, would lead to a rise in revenue to an estimated £11.5 billion for 1997.
Under employment, the report calls for the expansion of a pilot part time job opportunities programme currently operating in a number of areas throughout the State. The programme, run by CORI with government funding is similar to the existing Community Employment Scheme, except that participants could be taken on for a full three year period.
The report's main proposals are summarised in a 10 point plan which is directed towards the Government, the social partners and policy makers generally. CORI says these issues should be considered in the new national programme which follows the Programme for Competitiveness at Work, the national anti poverty strategy, next year's general election and all future budgets.
