Social Justice Ireland calls for new 'social contract' from Government

Social Justice Ireland director Sean Healy says the Government must not 'repeat the mistakes of the past'. Picture: Denis Minihane

An extra €3bn in taxes must be raised in various ways, including an effective minimum rate for corporations, in order to get a long-term recovery under way, according to a new policy document from Social Justice Ireland.

The anti-poverty agency also recommends that one fifth of all new homes built should be for social housing and that all costs associated with the pandemic be ringfenced so as not to impact on spending in a recovery.

SJI is launching a new “social contract” today as a blueprint for a recovery, which, it says, takes account of the wide range of factors that must be addressed in the post-Covid world.

“The National Economic Plan — to be published on Budget day — must give equal weight to environmental, social, and economic considerations,” according to SJI director Sean Healy.

“If not, this Government will simply repeat the mistakes of the past.

“If Government is serious about our long-term recovery, about securing our public finances in a changed world, decarbonising the economy, and preparing for digital and technological transformation, then the National Economic Plan must be underpinned by a new social contract that treats our environment, society, and economy equally.” 

The contract also proposes to set up a tax commission with a mandate to set out “a pathway towards increasing the total tax-take and broadening the tax base”. 

SJI points out that this country’s overall tax take is still below that of the European average. 

The proposed contract has 80 recommendations, including:

• Fully resource the implementation of Sláintecare;
• Set a target of 20% of all housing stock in the country to be social housing;
• Introduce a floor of Basic Income and Basic Services;
• Introduce State-led childcare;
• Reintroduce windfall gains tax at 80%;
• Introduce a floor of basic income and basic services; 
• Ringfence the Covid-related costs incurred in 2020 and 2021 to deal with the deficit;
• Increase the minimum wage to the level of the living wage;
• Introduce a minimum effective rate of corporation tax of 6% on all corporate profits passing through Ireland.

Colette Bennet, research analyst at SJI, says that the strength of the social contract is in its ability to improve the quality of life and wellbeing of all Irish citizens.

“We welcome the ambition of Government to provide each citizen with accessible and affordable healthcare, housing, education, childcare and disability services, and the commitment to a living wage," she said. 

"How this ambition is delivered will be a yardstick for how committed Government really is to a new social contract.” 

You can make a donation to Social Justice Ireland here.