We need to face up to reality and pull together

THE question is raised: should Ireland default? Let’s put the question to the people in a referendum.

However, the Irish should face a reality check first. Let’s benchmark salaries, unemployment social welfare payments and the minimum wage. Compare this bench mark against the average of wealthier countries like Germany, France and the UK and adjust our wage rates downwards. Yes, we are referring to our GPs, hospital consultants, nurses, ESB workers, public pensions and social welfare recipients, etc. It is time now to be mature as a nation and let us all pull together for the sake of our nation.

Next, put all billions from the bank bailout including NAMA and Anglo Bank into a rescue package called the “Irish Euro Bailout bond”. Due to the benchmarking process there will be an extra costs on private house mortgage defaults, this cost too will be passed into this bond. Ignoring the costs of the bailout, the government should prepare the annual budgets where expenditure is balanced against our tax revenues. Yes we should plan for the water tax and the property tax rate and perhaps a second level of tax on our offshore oil and gas profits.

We should bring our income taxes up to the level of the European average as well. After these benchmarking exercises are implemented, the surplus revenue available in our annual budget is the money we can afford to offer for repayment of our billions owed in the Irish Euro Bailout Bond.

But the big question is will the Irish people face reality and accept the benchmarking process.

Patrick Fitzpatrick

Glanmire

Co Cork