The story so far
SPENDING TAX
THE COMMITMENT: “The Government will conduct a comprehensive spending review to examine all areas of public spending and to assess effectiveness of spending programmes.”
WHAT HAS HAPPENED: The review will be published this month.
THE COMMITMENT: “The Government will keep the corporate tax rate at 12.5 per cent”.
WHAT HAS HAPPENED: This cornerstone of economic policy has been successfully defended and external pressure for an increase seems to have diminished.
THE COMMITMENT: “The Government will consider various options for a site valuation tax.”
WHAT HAS HAPPENED: A €100 annual “household charge” will be introduced in January next year for two years, ahead of the introduction of a full property tax, based on site valuations, in 2014.
THE COMMITMENT: “We will introduce a fair funding model to deliver clean and reliable water.”
WHAT HAS HAPPENED: A new State utility company, Irish Water, will be set up in the autumn to oversee the process of installing meters in all homes. Domestic water charges based on usage will be introduced in two years’ time.
BANKING
THE COMMITMENT: “We will seek a reduced interest rate as part of a credible re-commitment to reducing Government deficits to ensure sustainability of our public finances”.
WHAT HAS HAPPENED: In July, euro zone leaders cut the annual cost of Ireland’s bailout by agreeing a larger than expected cut in the interest rate on rescue loans. Cutting the interest rate on loans from the EU by 2 percentage points to about 3.5 per cent is expected to save Ireland over €800 million a year.
THE COMMITMENT: “We will defer further recapitalisation of the banks until the solvency stress tests are complete and known to the new Government.”
WHAT HAS HAPPENED: In the first seven months of this year, The Government put a further €10.7 billion into the banks as part of recapitalisation efforts. However, the expected further injection of capital into Bank of Ireland this summer was not needed after private equity investors agreed to stump up €1.1 billion for a 35 per cent stake.
THE COMMITMENT: “We will end further asset transfers to Nama.”
WHAT HAS HAPPENED: Done, after agreement with the EU-IMF
THE COMMITMENT: “We will establish a Strategic Investment Bank.”
WHAT HAS HAPPENED: No action so far.
JOBS
THE COMMITMENT: “We will – within the first 100 days – resource a Jobs Fund.”
WHAT HAS HAPPENED: A scaled-down jobs initiative was introduced in May, funded by a levy on private pensions. It provided for a cut in VAT for tourism-related businesses, a temporary halving of the lower rate of PRSI, a national internship scheme and the abolition of the travel tax as part of a deal with airlines to restore lost routes. However, the internship scheme has been slow to get off the ground and the abolition of the travel tax has been delayed.
THE COMMITMENT: “We will reverse the cut in the minimum wage”
WHAT HAS HAPPENED: Done
THE COMMITMENT: “We will reform the Joint Labour Committee structure”
WHAT HAS HAPPENED: The JLC structure had to be abolished following a High Court judgment on the issue but Minister for Enterprise and Jobs Richard Bruton has promised new legislation shortly.
THE COMMITMENT: Under the NewERA programme, the Government promised to set up State water, telecoms and alternative energy companies, with €2 billion of the €7 billion funded by the sale of State assets.
WHAT HAS HAPPENED: Nothing so far, except the appointment of a Minister of State to implement policy.
REFORM
THE COMMITMENT: “Ministers’ salaries will be reduced”
WHAT HAS HAPPENED: One of the first acts of the Government was to cut ministerial salaries, with the Taoiseach’s capped at €200,000. Most Ministers also lost their State car and Garda drivers. A ceiling of €200,000 has been imposed for new public service appointments, and existing post-holders have agreed to have their salary capped at this level. A €250,000 ceiling will apply in most semi-States.
THE COMMITMENT: Longer Dáil sittings and a ban on corporate donations. Referendums on abolishing the Seanad, reducing judges’ pay and allowing the Oireachtas to carry out meaningful investigations.
WHAT HAS HAPPENED: A modest increase in sitting hours has been proposed, including one Friday sitting per month and a half-hour earlier start each day. The referendums on judges’ pay and Oireachtas investigations, will be held in October.