Neil McDonnell: Structural problems threaten our economic stability

No one really believes that an extra €54.60 per week for those on the National Minimum Wage will help them rent a house or buy an apartment. But that is exactly what the 'living wage' agenda is suggesting workers should be able to do, writes Neil McDonnell, Isme chief executive.

'Managing departmental expectations is far more difficult when money is plentiful than when it is not.' Picture: Sam Boal/Rollingnews.ie

It is hard to have sympathy for a finance minister suffering an embarrassment of riches come budget time, but the political reality for Michael McGrath is that managing departmental expectations is far more difficult when money is plentiful than when it is not.

In our pre-budget submission to government, Isme asked for significant tax and social welfare reform this year, while also proposing €1.1bn in additional Exchequer income via PRSI and USC simplification measures. From the papers published last week by the Tax Strategy Group, and from the general pattern of leaks from Merrion Street, it does not appear that significant reforms will take place this year.