The Government should use this year’s budget to invest more in major infrastructure and research so as to create a broader economic base and lessen dependency on revenue from a handful of multinational companies, the Irish Congress of Trade Unions (Ictu) has said.
Speaking ahead of the National Economic Dialogue, an annual event taking place at Dublin Castle on Monday, Ictu general secretary Owen Reidy said the Government needed to act in order to end the State’s reliance on the “sugar rush” currently provided by corporation tax.
While the economy was clearly doing well on the face of it, Mr Reidy said: “We know that headline figures don’t tell the full story of the Irish economy.
“We have an over-reliance on a handful of firms for corporation tax, significant wage inequality and major infrastructure deficits across housing, healthcare and transport.
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“Budget 2026 must mark a turning point by giving certainty and security to workers across Ireland. That means good jobs that pay well, a decent standard of living, as well as stronger public services. But it should also mean a shift in our economic model.”
Mr Reidy said Ictu would be publishing submissions in the coming weeks outlining how it feels the Government should address the issues involved and “start serious planning for the longer term”.
Figures published in January indicated the amount of money paid in corporation tax to the State increased by 18 per cent last year to €28 billion. This excluded the €11 billion windfall arising from the Apple tax case.
In contrast, some €35 billion was generated in income tax last year with €21.8 billion coming via VAT receipts and €6.3 billion from excise duties. This means corporation taxes accounted for about a quarter of all Government revenue last year.
While the corporation tax take is expected to increase further this year, there have been repeated warnings about State finances being overly reliant on it.
Speaking ahead of Monday’s conference, which will be attended by representative bodies from across the economy and addressed by the Taoiseach, Tánaiste and senior Ministers, Mr Reidy said: “We’ll be urging Government to create genuine economic certainty by investing in infrastructure and research, strengthening workplace democracy, reducing inequality and ending the fiscal gimmickry of the past.”
He said action was needed given the current economic uncertainty.
Meanwhile, Ictu has been arguing in recent months for a long list of changes to employment regulation as part of an action plan the Government is required to publish in relation to the European Union Directive on Adequate Minimum wages, which the unions hope will pave the way for far wider collective bargaining.
