CCI warns McCreevy to cease cosmetic finance strategy

Finance Minister Charlie McCreevy should stop his strategy of trying to shifts costs "off the books" in an attempt to make the public finances appear more healthy.

The last time such a policy was undertaken it took a decade for Ireland's finances to recover, the

Chambers of Commerce of Ireland claimed today.

The CCI also stated that capital projects were being sacrificed with money being channelled to fund the cost of public service pay.

Its chief executive, John Dunne said today : "We have already seen the Government renege on its commitment in last year's budget that increases in road tax would be ring-fenced for improvements in non-national roads.

"Instead it is being used to fund local authority pay," he added.

Dunne also called on McCreevy to give assurances that this will not continue to happen next year.

The business lobby group also presented the Minister for Finance with what it termed 'cost-free' proposals.

These included broadening the tax base by introducing a Property tax to cover all properties except primary domestic dwellings, changing the insolvency rules affecting SMEs and allowing the efficient transfer of Special Saving Incentive Accounts (SSIA) money to

Personal Retirement Savings Accounts (PRSAs) at the end of the savings term.

The CCI proposals were included in its pre-budget submissions presented to the Department of Finance today.