Unions seek 'recovery bond' and new property tax

Trade union leaders have called for the establishment of a “national recovery bond” which members of the public could pay into, in an effort to take Ireland out of the economic crisis.

Publishing a document in response to Government proposals on the economy published last month, the Irish Congress of Trade Unions (Ictu) also called for the introduction of a 48 per cent income tax rate on “ incomes that are a multiple of average industrial earnings.”

It could be necessary to introduce a tax on properties other than the family home or on large houses, so called ‘trophy homes’, the Congress proposal said. It also called for the renationalisation of Eircom.

Ictu General Secretary David Begg said any attempt to cut pay would exacerbate the crisis. “We cannot be party to an exercise which is designed solely to cut wages and services. This crisis requires new thinking and Congress is bringing forward several new proposals on how it can be tackled – by all of society.”

Mr Begg said a national recovery bond would be an innovative way for Government to raise money and for people to “buy into a new plan – but only if they felt it was fair.”

Mr Begg said a new “Social Solidarity Pact” should be introduced to get credit flowing, reflate the economy and maximise employment, stabilise the public finances and address competitiveness.

The Congress proposals contain a number of other initiatives, including:

• Strategic intervention in the economy - renationalise Eircom to overcome the national competitive disadvantage in Broadband infrastructure and supply;
• Reshape the Social Welfare system to focus on skills development and establish a national Flexicurity System
• Set Capital taxes at relevant income tax rates
• Invest in a pre-school, early development education programme for all children under three and establish a National Childcare Network
• Establish a Primary Health Care Network
• Put in place measures to protect private sector pensions and examine the development of a mandatory pension system
• Invest in Pubic Transport, a School Building programme, Social Housing and Home Insulation
• Establish a new Corporate Governance Regulatory regime