THE SOCIAL campaigning group Cori (Conference of Religious of Ireland) Justice has said the Government should not seek to find a way out of the current economic downturn through excessive cuts.
In a briefing policy published yesterday in advance of the budget next month, Cori said that while cutbacks would be necessary, the core of any effective strategy had to be investment.
Tackling current crises would involve financial measures, but, it said, more importantly, it would require a reorientation of the economy towards “development of productive and innovative firms, creating a more sustainable tax base, significant investment in the skills and wellbeing of the population, and securing social services and infrastructure at levels sought by the Irish people”.
Cori, which represents more than 135 religious congregations, described as “seriously problematic” the Government’s proposals to limit borrowing this year to a maximum of 9.5 per cent of gross domestic product.
“To achieve this target they argue that €4.5 billion or more should be taken out of the economy through a combination of tax increases and public expenditure reductions. These parameters are seriously problematic.
“The target of 9.5 per cent is in stark contrast to the borrowing of some other countries.
“For example, the comparable figure . . . in President Barack Obama’s first budget is 12 per cent. Making adjustments of €4.5 billion over an eight-month period is likely to have a very negative impact on Ireland’s economy.”
Cori said a substantial part of the additional revenue required by the Government could be generated by raising the country’s total tax take to a level that was 1.5 per cent below the EU average between now and 2013.
As part of proposals to broaden the tax base and make the system fairer, it proposed that all tax breaks should only be made available at the standard 20 per cent rate and that such tax breaks should be eliminated where the cost could not be calculated.
It said the Government should move towards the introduction of a tax on property. This should be preferably through the introduction of a land value tax – a tax based on the annual rental value of land so that places with major public facilities would pay more.
Cori Justice director Fr Seán Healy said: “We need to move from a world that is built on individualism, anxiety and greed to a world that is built on the reality of abundance, the need for generosity, the dignity of the person and the centrality of the common good.”
