Cap public servants’ pay at €100k, urges SF

By Shaun Connolly, Political Correspondent

Tuesday, November 17, 2009

ALL public servants from the Taoiseach down should have their pay capped at €100,000 a year, Sinn Féin has said.

Unveiling its routemap out of the recession, the party called for a third rate of tax to be levied on high earners as part of a new "fair tax" economy.

The party has also proposed a €3.2 billion job creation initiative.

Sinn Féin is the first Dáil party to outline its proposals ahead of the December 9 budget and insists its agenda would raise €7.62bn for the Exchequer and avoid the need for cuts in social welfare.

Sinn Féin wants an immediate 20% cut on the excise duty on alcohol over the Christmas period to encourage shoppers to spend their money in the Republic rather than head North for cheaper prices.

Party finance spokesman Arthur Morgan said the package of measures would cut the budget deficit by €3.7bn and generate €3.94bn to pump into the economy.

Those earning above €100,000 would face a third rate of tax at 48%, which Mr Morgan said would generate €355m.

Capping public sector pay at €100,000 would save €450m, he added.

Standardising all discretionary tax reliefs would raise €1.1bn, and a wealth tax of 1% on assets worth more than €1m, excluding farmland, and houses worth under €3m, would claw back another €1.6bn, the party said.

Mortgage interest relief for landlords would also go with a saving of €285m, and the tax on second homes would rise to €600 a year, bringing in €120m.

Sinn Féin also proposes a €3.21bn economic stimulus package to boost jobs, and a €723m scheme to protect struggling households.

Mr Morgan urged Finance Minister Brian Lenihan to take on board the party’s pre-budget suggestions.

"Over the course of the past seven months tax receipts have dropped by €2bn – a direct result of cutting spending and targeting tax increases at the low paid.

"There is a fairer alternative to the Government’s slash and burn approach. We must invest in jobs and public services and social welfare – to protect citizens, not bank managers and the wealthy. We do not want a high tax economy, we want a fair tax economy.

"Our submission throws down the gauntlet to the Government. Their choices will either put us on the road to recovery or deeper into recession," Mr Morgan said.

This story appeared in the printed version of the Irish Examiner Tuesday, November 17, 2009