Competitiveness Council backs calls for property tax

The National Competitiveness Council has backed calls for the introduction of a valuation-based property tax in order to help plug the massive hole in the public finances.

The council is also calling for targeted cuts in public spending, as well as more productivity and flexibility in the public sector.

In a report out today, it says Ireland runs the risk of entering a prolonged period of depressed economic activity without immediate action on competitiveness.

It says export-led growth is the only sustainable way to maintain living standards in Ireland

Elsewhere, the council also says banks must bear the risk and take the responsibility to resolve the problems they have caused.