PROPOSALS AGREED by Fine Gael and Labour on the economy, public sector reform, political renewal, healthcare and education form the basis of the document Towards Recovery: Programme for National Government.
The programme was approved by the special conference of the Labour Party yesterday at University College Dublin. It was outlined to members of the Fine Gael parliamentary party meeting in the Shelbourne hotel.
The 64-page document begins with a “statement of common purpose” which declares that “a democratic revolution” took place on election day and that “we now face one of the darkest hours in the history of our independent State”.
There are commitments on the budget deficit, public sector staffing levels, water charges, constitutional reform, job creation, income tax and third-level education.
The two parties have reached a compromise on the year 2015 instead of Fine Gael’s 2014 and Labour’s 2016 for reaching the 3 per cent deficit target.
Fine Gael sought to cut 30,000 jobs from the public sector on a voluntary basis by 2014, compared with 18.000 sought by Labour. This figure has been agreed by the two parties at between 18,000 and 21,000 within the same period, with a further 4,000 to go by 2015.
On third-level education, the parties have agreed to a “full review” of funding before the end of this year, based on the Hunt and OECD reports, but there is no specific reference to the Fine Gael plan for a graduate tax.
“Our goal is to introduce a funding system that will provide third-level institutions with reliable funding but does not impact access for students,” the document states.
A State-owned water utility company is to be established to take over from the local authorities, with the objective of installing water meters in every household and “move to a charging system that is based on use above the free allowance”.
A constitutional convention will review Bunreacht na hÉireann and the government will “prioritise” referendums on five topics:
*abolition of the Seanad, although no date is specified;
*reversing the effects of the Abbeylara judgment on the powers of Oireachtas committee investigations;
*protecting the right of citizens to "communicate in confidence" with their public representatives;
*cutting the salaries of judges in "restricted" circumstances;
*children's rights.
The convention will also consider such topics as: same-sex marriage; reducing the presidential term from seven to five years; reducing the voting age; and removing the provision on blasphemy.
The number of TDs will be reduced in line with the 2011 census. Ministerial salaries will be cut, political expenses will have to be vouched for and severance payments for ministers will be cut.
A strategic investment bank, proposed by Labour, is to be established, although there no detail supplied in this document.
Fás will be replaced by a national employment and entitlements service.
Resources will be provided within the first 100 days of the new administration for a jobs fund. An export trade council will be established to promote trade and exports.
A national development plan will be drawn up for the period 2012-2019. A commercially-financed investment programme called the NewERA plan, which was the title used in the Fine Gael manifesto, will also be put in place.
The document states: “We will target up to €2 billion in sales of non-strategic state assets drawing from the recommendations of the McCarthy review group on State assets, when available.”
The programme also pledges “to stick to the aggregate adjustment as set out in the national recovery plan for the combined period 2011-12”.
Existing rates of income tax, together with bands and credits, will be maintained. Top marginal rates on income will not be increased.
“We will reduce, cap or abolish property tax reliefs and other tax shelters which benefit very high income earners,” the programme states.
The new government will “consider” a site valuation tax on property, which must take account of “mortgage distress” and the provision of a reliable stream of revenue to local government.
“We will review the universal social charge,” the document states.
An independent fiscal advisory council will be set up to “undertake fiscal macroeconomic projections and monitoring”.
In the health area, universal health insurance will be brought in by 2016, with access according to need and payment according to ability to pay. “Universal primary care will remove fees for GP care,” the document adds.
On the Irish language, there is to be “a thorough reform” of the curriculum and the way Irish is taught. There is no reference to the controversial Fine Gael proposal to drop Irish as a compulsory subject of study for Leaving Cert.
The preamble to the document begins: “On the 25th February a democratic revolution took place in Ireland. Old beliefs, traditions and expectations were blown away.” The document continues: “It is no exaggeration to say that we now face one of the darkest hours in the history of our independent State.
“To deal with this unprecedented national economic emergency, our country needs an unprecedented level of political resolve.
“What is needed now after a long period of reckless, ill disciplined government is strong, resolute leadership.
“That is why Fine Gael and Labour, the two largest political parties in the State, having achieved historic levels of support in the general election, now seek to use their mandate to form a government for national recovery.”
For a PDF table comparing the coalition parties' pre-election promises with their programme for government, click
