Labour budget proposals for 2010

[bprob]

didn't see a thread for this anywhere yet.
i also just posted a thread on the FG proposals

the labour party have issued their proposals for the upcoming budget, including:

jobs and enterprise strategies:
jobs fund:

include a major School-Building and pre-fab replacement programme to begin in 2010 and run into 2011, an additional allocation to the warmer homes scheme as part of the compensating measures accompanying the carbon tax and other initiatives supporting training needs, including capital provision for further education.

enterprise: establish a state investment bank and draw up a new national development plan

social welfare:

No cuts in the basic rates of social welfare
Support for families by maintaining child benefit
Restoration of the Christmas payment
Targeted measures to deal with the impact of fuel poverty on low-income households and charities, and associated measures, such as greater investment in rural transport and more resources for the warmer homes scheme.

public sector reform:

Appointment of a Cabinet Minister with responsibility for Public Service Reform
New Budgetary procedures to devolve responsibility to agencies and departments, who will be required to achieve value-for-money targets and a reduction in the public sector pay bill, while preserving the quality of services.
Stronger scrutiny in the Oireachtas of how money is spent based on our long- standing proposals for Oireachtas scrutiny of public expenditure.
Flexibility in the deployment of staff, and more openness in the limited recruitment that will be carried out in the public service.

and reduce public sector payroll

and taxation changes:

Immediate abolition of all property reliefs as an emergency measure
Substantial reduction of the relief on rental incomes of commercial and residential investment properties to 25%.
Abolition of a number of minor reliefs i.e. relief on donation of heritage items and relief on trade union subscriptions.

the introduction of a third rate of tax on earnings over €100,000 for an individual or on earnings over €200,000 for combined incomes...
...This would initially be set at 48%, and would remain in place as and when the emergencies levies are brought into the tax code, resulting in a three-tier tax system.

and carbon tax
and support for changes in the rules governing taxation of tax exiles

Full details here:
http://www.labour.ie/download/pdf/prebudget.pdf

there is a brief outline by liam delaney on: The Irish Economy

the FG proposals seem to have more detail in them, but i am by no means an economist.
what do you think?

[krusty]

The FG proposals look like proposals , the Labour proposals look like aspirations.
The FG Proposals have figures and targets , the Labour proposals have populist sound bytes.

I know who would get my vote if it was decided on budgetary policies

[Rebel CNC]

This Labour fixation with rental properties is ridiculous.

Their proposals will be hammered by people who invested in a second property as their pension (or backup in case of serious illness/death), as an alternative to handing over a big wad of cash to some private pension fund, managed by the banks; knowing that a massive % would be sucked up in commisions/bonus/charges.

Labour politicians with a background in the cosseted world of public sector, defined benefit pensions assume everyone else will enjoy the same gold-plated, taxpayer funded, income stream on retirement.

By all means target the landlord who hoovered up 10, 100 or 1000 properties but let off the couple with a single property nest egg out of their populist, rabble rousing scheme.

ps - I do not haqve a second property.

[redpath]

More ministers? yawn

what will this budget actually do?

[piano]

I seriously laughed when I saw the Labour proposals, having already read the FG ones.

Labour thinks that there's €100m to be got from tax exiles.
FG puts it at a more modest figure of €20m. If there was such a pot of gold FG would have put it in the proposals. It's likely that that money is not there.

It's also disappointing when you see no specifics on how to reduce the public sector wage bill. FG costed their plan and even took to the bold step to call for €1.7bn in savings. That's by no means a vote getter from PS workers but it's the right decision. Labour again goes for the populist move.

We have deflation at over 6% and a €22bn deficit. Social Welfare rates need to come down. Labour were against this while FG took another bold move of proposing a 3% cut. A net increase of 3%.

Also the constant emphasis on property relief and 3rd rates of income tax is populist too. The property market is dead so it'll raise no money!


Last week both FG and Labour had youth unemployment proposals out on the same day. Again Labour's was not costed and it was a mere 3 pages. On the other hand FG had full costings and it was a prudent and doable plan.

[bprob]

I seriously laughed when I saw the Labour proposals, having already read the FG ones.

Labour thinks that there's €100m to be got from tax exiles.
FG puts it at a more modest figure of €20m. If there was such a pot of gold FG would have put it in the proposals. It's likely that that money is not there.

It's also disappointing when you see no specifics on how to reduce the public sector wage bill. FG costed their plan and even took to the bold step to call for €1.7bn in savings. That's by no means a vote getter from PS workers but it's the right decision. Labour again goes for the populist move.


Last week both FG and Labour had youth unemployment proposals out on the same day. Again Labour's was not costed and it was a mere 3 pages. On the other hand FG had full costings and it was a prudent and doable plan.

i have to say i completely agree.
eamon gilmore has really gone down in my estimation in the last 12 months. he constantly gives in to populist motivations. if labour supporters are looking for reasons why they haven't thrived like FG in the opinion polls, that it right there: people want solutions, not populism; they want specifics, not soundbites.

the worrying thing about this from a FG point of view how will they convince voters to vote for an alternative government, which seems to be following divergent policies.

[piano]

i have to say i completely agree.
eamon gilmore has really gone down in my estimation in the last 12 months. he constantly gives in to populist motivations. if labour supporters are looking for reasons why they haven't thrived like FG in the opinion polls, that it right there: people want solutions, not populism; they want specifics, not soundbites.

the worrying thing about this from a FG point of view how will they convince voters to vote for an alternative government, which seems to be following divergent policies.

Well, I'm not worried, and neither is anyone else in FG. We're pushing for an overall majority and we certainly won't be entering a silly deal like the 2007 mullingar accord.

The alternative that we'll present to the electorate will be FG and FG only with all our costed polities.

[j26]

It is rather wishy washy, isn't it?

[Rebel CNC]

Well, I'm not worried, and neither is anyone else in FG. We're pushing for an overall majority and we certainly won't be entering a silly deal like the 2007 mullingar accord.

The alternative that we'll present to the electorate will be FG and FG only with all our costed polities.

I think that's probably the best option now - Gilmore and Labour have been floundering in recent months.
Gilmore's response to the "unpaid leave" plan showed a lack of judgement of Cowen like prportions and as outlined above, their rental property proposals are populist and short sighted. They'd have made some sense back in May 2007 to deflate the property bubble but back then Labour were trying to out-FF FF in their desire to continue inflating the bubble.

To be honest, if FG had a better leader, I don't think they'd be a million miles away from a historic overall majority. As it is, I'd say they'll struggle to more than 65-70 seats.

[Wakeupcall]

Anyone supporting Carbon Tax should have their hands cut off for theft.