Finance chiefs call for more taxes, social welfare cuts and sale of ESB

TAX hikes, cuts in social welfare and selling-off the ESB and Board Gáis are favoured by finance directors in private companies as key measures to reduce the budget deficit.

Two in three (64%) finance leaders advocate the privatisation of utilities. This was a key finding of research conducted by Hays, recruitment specialists in qualified, professional and skilled people.

Hays surveyed 218 financial directors, financial controllers and other senior finance executives on Budget 2011 in October, asking which measures the Government should adopt to reduce the deficit.

The accountants favoured alternative revenue generating and saving measures, including a third, higher-rate income-tax band, which was suggested by three in five (60%) senior finance professionals. The introduction of a universal social contribution would also be welcomed by 72%.

Managing director of Hays in Ireland Richard Eardley said: “The decision not to touch the semi-states through a privatisation programme is seen as something of a missed opportunity by our financial experts. The other notable absence from the recovery plan was any signal regarding a third, higher-rate income-tax band, with the majority of our survey respondents supporting such a measure.”

Almost nine in ten (86%) support a reduction in social-welfare payments, while 73% believe this would impact positively on employment. Three-quarters (77%) of the respondents also agree with the Government that the minimum wage should be reduced and the same number believe this would impact positively on employment.

The accountants believe savings should be biased towards spending cuts and four in five stated that tax increases should not account for more than 25% of the adjustment target.

When it came to cuts in capital spending, 32% would not make any cuts to education and 27% would not cut the healthcare budget.