Economic competitiveness suggestions

[patslatt]

Today's London Times on page 23 has a checklist of suggestions for improving economic competitiveness taken from a report by the Conservative Party's policy group.Some of these may be applicable to the Irish economy,for example:

[] Abolish stamp duty on shares.

This may be intended to keep investment capital from migrating to the duty free US market and tax havens, which can be done easily on the Internet.

[] Make work health and safety risks more proportionate.

Having researched the regulations governing restaurants, which include many acts of the Irish legislature and EU law, I concluded that a team of barristers would have difficulty advising on how to open a restaurant without contravening some regulation or other. In other countries,such opaque regulation tempts inspectors to extort bribes.

[] No compulsion to buy an annuity from pension fund on retirement.

THis compulsion reflects the power of insurance companies over politicians. It treats people like children. Of course,some people may spend the pension money and then rely on the social welfare to keep them. The solution is to require purchase of an annuity that would provide,say,50% of the equivalent of state welfare.

[] Where EU legislation applies,do not put in place extra UK regulations.

THe UK civil service and regulatory bodies for some strange reason have a habit of goldplating EU legislation,according to the business press. Does the Irish civil service do so too,given the Irish habit of copying UK laws?

[] Seek opt-outs from EU legislation in areas where UK legislation would create jobs and prosperity.

There is a risk that the tsunami of regulation in Europe will smother economic growth,if it hasn't done so already. As deregulatory initiatives show, it is nearly impossible to get rid of redundant regulation or regulation where the costs clearly outweigh the benefits.

[] Appoint a cabinet officer to keep red tape within a set "budget" for each department.

This would require departments to cost the burden of new regulations.

[] Restore European social chapter opt-out and produce UK rules on work councils,part-time and fixed term working and sex discrimination.

The EU social chapter conspires to force trade unionisation on small businesses by pretending that management's compulsory consultation with employee representatives is required for the welfare of the workforce. In my opinion,competition among employers to recruit the best employees is the best thing for the welfare of the work force,provided workers have portable pensions they can carry with them from job to job. Compulsory consultation will do nothing but generate fees for consultants. If it did lead to unionisation in a small number of companies, they would not be able to offer pay and benefits much better than the average for their industry, given that private sector unions have little market power in Ireland's internationally competitive,open economy.

[jpc]

In an Irish context I agree with the points made on 2,4,5

[Ard-Taoiseach]

Ireland is the second easiest place in the world to pay business tax, as research published here:

http://www.finfacts.com/irelandbusiness ... 7968.shtml ,

states. Keeping our position at second or moving to number 1 would be mighty fine for keeping competitive. Plus cutting the tax rate further, of course.

[pfkf1]

Ireland is the second easiest place in the world to pay business tax, as research published here:

http://www.finfacts.com/irelandbusiness ... 7968.shtml ,

states. Keeping our position at second or moving to number 1 would be mighty fine for keeping competitive. Plus cutting the tax rate further, of course.

I think this should be done sooner rather than latter with regards to corporation tax I would propose a reduction from 12.5% to 11% over the next 12 months, in order for us to remain competitive economically in a global context, so as we do not keep losing large number of jobs to countires with cheaper running costs and cheaper salaries. I also believe that we need to increase income tax in the higher band to 43% and the lower band to 22%, this would be done in order to improve public services.

[Ard-Taoiseach]

[

I think this should be done sooner rather than latter with regards to corporation tax I would propose a reduction from 12.5% to 11% over the next 12 months, in order for us to remain competitive economically in a global context, so as we do not keep losing large number of jobs to countires with cheaper running costs and cheaper salaries. I also believe that we need to increase income tax in the higher band to 43% and the lower band to 22%, this would be done in order to improve public services.

But doesn't raising taxes on labour disincentivise the desire to work? Our lower rates of tax, especially the upper band, have been critical in increasing the level of overtime worked in this country and thereby improving the tax take overall.

[boldfenianman]

If Dublin truly wants to be an international financial centre then the stamp duty on share-dealing should be done away with. I know that would be seen as a sop to the rich but it would also encourage foreign companies to list in Dublin and raise the profile of the capital still further in these matters.

[wombat]

I also believe that we need to increase income tax in the higher band to 43% and the lower band to 22%, this would be done in order to improve public services.

How can you imagine that increasing income tax would improve public services? If money was the solution we would already have a good health service. The govt. has linked the TV licence fee to the cost of living - where is the incentive for RTE to improve? Our road building program is now within budget because the budget has been set to allow for inflated cost. Local authorities gouge businesses with planning fees because they can, not because they spend money efficiently.

[pfkf1]

I also believe that we need to increase income tax in the higher band to 43% and the lower band to 22%, this would be done in order to improve public services.

How can you imagine that increasing income tax would improve public services? If money was the solution we would already have a good health service. The govt. has linked the TV licence fee to the cost of living - where is the incentive for RTE to improve? Our road building program is now within budget because the budget has been set to allow for inflated cost. Local authorities gouge businesses with planning fees because they can, not because they spend money efficiently.

The reason why I suggested it was becasue we must plan not the week ahead or even 5 years ahead but for 20-30 ahead, and currently we do not have the money to do that.

By 2020 the cso predict that there will be over 5 million people thats a 25% increase on what we currently have, also there will be over 3 million cars on the road, which is unsustainable.

Petrol prices if they have the same rate of increases as they have had over the last 6 years by the the time 2019 comes around 12.75 litres of petrol, which today will cost you €15, will cost you €29.74. I believe that Transport 21 is welcome but goes nowhere near what we need, we need at least 6 more tram lines in dublin as well as the 2 metro lines, we need a reduction in the number of buses, but use the remaining buses to connect up the train lines. we need the same in other cities around the country, such as Galway, Limerick, Cork, and Waterford. Dublin also needs a new motorway to go around the current M50.

As you can see this will cost a huge amount of money, and that is only regarding transport, not Health, Justice, Environment, Social Welfare, etc. We need to take the hit now, rather than wait for indecision, so as we can plan long into the future, for the benefit of all.

[zachler]

Sticking to the issue of competitiveness, an aggressive competition authority that can impose competition on the professions (GPs, Pharmacists, legal profession) and the service sector (a big source of inflationary pressure) would help enormously. We have a twin economy here; highly competitive in some areas with monopolies and oligarchies elsewhere.
The National Competitiveness Council's reports have plenty of recommendations for improving Ireland's competitiveness.

[Ard-Taoiseach]

I'd go back to basics on the wage growth front. We used to trade pay moderation in return for tax rate cuts so that take-home pay increased strongly while actual pay only increased slightly.

As well as that, VAT rates on essential business services such as electricity, gas and telecommunications need to be slashed to lower costs.

Furthermore, the tax incentive system for building certain types of buuldings which has been so successful over the past few years should be adapted to building export-led Irish companies.

Enterprise Ireland has been extraordinarily successful in boosting Irish exports and should be motivated to carry on in its sterling work.

The IDA should step up its efforts substantially in terms of advertising and networking with MNCs.

We should have a huge increase in the number of trade missions we go on and should be widely spread around the globe.

Significant increases in spending on FÁS training courses and constant re-optimisation of courses available in FÁS centres.

w00t!!! 100th post