Mark Henry: Our corporate tax windfall can bring life-changing equality to our thriving nation

Single-parent households have low disposable income and very low net wealth. They, alongside households with children and single people of retirement age, are most likely to have difficulty making ends meet. File photo: iStock

The latest report card on the state of the nation’s well-being has been released. And it shows that we are a country doing very well indeed.

The ‘Understanding Life in Ireland’ report, born out of a Programme for Government commitment, is designed to provide an assessment of the nation’s progress beyond mere economic growth. The appraisal is one of positive progress across 10 of the 11 dimensions examined.

Most importantly, the Irish are very positive about how their lives are going. 45% of us rate our overall life satisfaction as very high—the highest proportion in any EU country.

We are a particularly safe country in which to live. Our murder rate is well below the European average, the proportion worrying about crime is low, and the number of people killed or injured on our roads has declined by almost 30% since 2015.

Counterintuitively, housing is an area in which the assessment is very positive. A strong increase in housing completions over the past five years is noted, along with a doubling of the share of domestic dwellings with an A or B energy rating. It also finds that the share of Irish households having to commit more than 40% of their disposable income to housing is amongst the very lowest in Europe.

The one dimension on which the report is unequivocal about our failings is that of the environment, climate and biodiversity. All the indicators are negative: our greenhouse gas emissions per capita are the highest in the EU, our river quality is deteriorating, our volume of waste is increasing, and the proportion of households reporting environmental problems is on the up.

A healthy natural environment is an important contributor to well-being. In failing to reduce our CO2 emissions we are impacting on the quality of life of others well beyond these shores. Equity demands greater action.

Inequality

Indeed, inequality of well-being is a major insight in the analysis. Women, single-parent households, people living alone, immigrants, unemployed people, households with lower incomes, those in rented accommodation, and people with long-term illness or disability all experience inequality of well-being across the range of indicators.

This is particularly concentrated in the areas of housing, and income and wealth. There is a very large difference in the proportion of households paying over 40% of income on housing, for example. Less than 1% of households who own their home experience this overburden, but more than 10% of households renting at market price do.

Income inequality in Ireland is low by international standards and has been on a downward trajectory for the past couple of decades. Nevertheless, single-parent households have low disposable income and very low net wealth. They, alongside households with children and single people of retirement age, are most likely to have difficulty making ends meet.

Opportunity

We now have an historic opportunity to make a step-change in addressing well-being inequality. The anticipated corporate tax surplus of €65 billion over the next four years provides government with the resources to make significant inroads across multiple domains.

Increased social supports can further reduce income inequality. Greater support for childcare provision will enable single parents and women to enter the workforce in greater numbers and increase their household incomes.

Lifelong learning is essential for reskilling and upskilling. Providing greater accessibility for adults with low levels of education, women, and people with disabilities empowers them to seize new opportunities that will arise at this time of full employment.

The provision of affordable housing can be accelerated. And investment in our green transition will deliver both an environmental benefit and will future-proof our economic development.

We are fortunate to live in a country that is focused on improving its citizens' well-being. The evidence is that it has done so to good effect in recent decades: we have never been healthier, wealthier, better educated, or happier.

But the job is never done. Deploying our tax windfall wisely will enable us to further reduce well-being inequality and to make Ireland a happier place to live for all.

• Dr Mark Henry of Technological University Dublin is the author of ‘In Fact: An Optimist’s Guide to Ireland at 100’.