O’Keeffe: Consider greater taxes for high earners

EDUCATION Minister Batt O’Keeffe said the Government should consider increased taxes for higher earners, although he is not sure it would make a significant dent in the €4 billion cut being sought in public spending.

A hike in taxation for higher-paid workers rather than cutting public servants’ pay is a key demand of the public service unions, whose members will shut down schools, hospitals and other essential services today.

Responding to the Red C/Sunday Business Post survey finding that the measure the public would most support is higher taxation on those earning more than €100,000, Mr O’Keeffe said the issue could be considered.

Asked whether it would be worth examining as something the wider public would perceive as fair, while child benefit and some other welfare payments look like being cut, he said: “They say perception is everything, but I do think we have to show quite clearly as a Government that those who can afford to pay will be asked to pay.”

His opinion is at variance with the repeated insistence of Finance Minister Brian Lenihan that a third rate of tax would not be considered and that the bulk of the €4bn in savings required from next month’s budget would have to be secured through public service cutbacks and a €1.3bn axe in the public service pay bill.

Mr O’Keeffe also repeated his claim that today’s national public service strike, which will close more than 4,000 schools and third level colleges, was unnecessary.

The minister said any further disruption should be avoided, as strikes are not going to achieve anything

Bodies representing primary schools’ boards of management said today’s strike and the two further days of action planned by unions will place great pressure on parents and guardians, many of whom are struggling to maintain their own employment.

Opposition to the school closures by teacher unions has also been voiced by parents’ groups.

And National Parents’ Council-Post Primary (NPC-PP) spokesperson Rose Tully said students are already affected by a range of education cutbacks and unions restricting parent-teacher meetings to school times.