Study shows cross-Border problems for workers

A new report commissioned by the North/South Ministerial Council has recommended the establishment of a permanent "one-stop shop" aimed at encouraging labour mobility between Northern Ireland and the Republic.

The PricewaterhouseCoopers report, published today, highlights the difficulties workers have in accessing information on such matters as taxation, health care and housing in one or other jurisdiction.

Entitled Study of Obstacles to Mobility, the report also draws attention to a misperception in the North that tax rates are considerably higher in the Republic compared to the North, where, in fact, the reverse is the case when it comes to married couples and those on low incomes.

The report states:

A single person earning £12,500, at standard exchange rates, pays 4.8 per cent less tax in the Republic compared to the North. Someone earning £25,000 pays the same amount of tax, while someone earning £50,000 pays 6.1 per cent more tax in the Republic.

For a married couple with no children, the tax burden, at standard exchange rates, is 16.2 per cent less in the Republic for an income of £12,500, 10.5 per cent less for £25,000 and 1.7 less for £50,000.

Despite this, a perception remains in the North that "income differentials are offset by higher taxes and the higher cost of living" in the Republic.

The report cited the case of one Northern woman who lost 50 per cent of her wages in emergency tax, and had to wait six months for a rebate, after moving south.

It says there is a need for an expansion of information in respect of the personal tax position in Northern Ireland and the Republic. This could be done under the "one-stop shop" initiative, which the report estimates would cost about €410,000 to €820,000 a year to operate. This information bureau should be located in a Border region, the report adds.

It makes other recommendations in the areas of social security, pensions, housing, transport, banking and communications.

In relation to education, it says "it is important that there is maximum co-operation on the recognition of qualifications", particularly those in the medical profession. Joint accreditation of vocational training courses should be introduced where appropriate, it says.

The report also makes recommendations for the private sector and calls for insurance companies to remove existing higher premiums for people travelling across the Border to work.

It suggests that fixed-line and mobile phone operators should consider introducing the same charges for local and national calls on the island of Ireland and it says banks should publish comparative information on fees and charges relating to domestic and cross-Border transactions.

"The evidence from our research suggests that it is rarely one single obstacle which limits freedom of movement, but a combination of factors which, acting together, can affect the decision to move. The effectiveness of any changes that are implemented will therefore be enhanced if these recommendations are taken as a package of measures which need to be tackled," the report says.

Weblink: www.qub.ac.uk/ccbs