Our economy is based on the value of our people – it must be driven forward by our creative and ambitious entrepreneurs, made competitive by capable workers, and provide quality jobs for our talented and energetic graduates.
Our Plan for Building An Economy For All
Equip the Workforce
Investment in lifelong education, skills-based training, apprenticeships and access programmes to help workers maintain value in a fast changing world.
Grow Investment
Inward investment is a key driver of growth – high levels of long-term Foreign Direct Investment must be maintained.
Foster Enterprise
From a Brexit fund to start-up support, we want to support new and existing businesses to drive our economic development and provide jobs, income and opportunities for our people.
Maintain Foreign Direct Investment
• In the near term, we are committed to maintaining the 12.5% corporate tax rate which is an important factor in our competitiveness as an FDI location – however, we would regularise our treatment of all companies to ensure that 12.5% is collected; • For the medium term, we will challenge EU Fiscal Rules to allow for the greater level of investment required to bridge Ireland’s infrastructure deficit – which is acting as a brake on growth in all areas of the country. We would tactically restructure our public debt, to free up fiscal space and take advantage of historically low borrowing costs; • For the long term, we want to ensure that the Irish economy competes for FDI at the higher end of the value chain, where investment will be predicated less on our tax system than on the agility and innovation of our workforce. Competing solely on price instead of value is not sustainable for most businesses, and nor is it right for our economy.
Equipping the Irish Workforce
• Steadily reducing primary school class sizes to the EU average of 20 • Introducing skills-based courses to include innovation, entrepreneurship, communications and critical thinking, together with required professional development for teachers • Investing in access programmes, building on existing successes, to ensure broad socio demographic representation across the third level system • Recognising that an apprenticeship ought to be acknowledged as a valuable third level education and a better competency based approach for some trainee professionals, we propose a new innovative National Apprenticeships programme in line with the European Framework for Quality and Effective Apprenticeships to help meet workforce needs and skill shortages. We want to see a particular focus on new apprenticeships in areas such as coding, IT security and AI • Investment in lifelong education so that employees can up-skill and re-skill to enrich the workforce and drive their own careers
Growing Irish Enterprise
• Provide an additional €100m for Enterprise Ireland for start-up support funding to bring support levels in line with comparable European states, ensuring that our start-ups are supported to grow internationally from an Irish base • While we believe that the current levels of Capital Gains Tax are appropriate overall, we believe it would be a good investment to allow entrepreneurs to offset a portion of Capital Gains Tax against rollover investment in new Irish start-ups; • Recognising the key role that cooperatives have played in developing Irish industry particularly our major success stories like Kerry and Glanbia and ensuring that new and growing companies based on this model have equal access to state supports; • Adjust the tax-treatment of share options for startup employees so that they can be rewarded without penalty for taking the risk of joining a new venture.
Supporting SMEs and the Self-Employed
• To respond to an immediate issue, we would provide a special Brexit fund to Enterprise Ireland to help insulate indigenous industries traditionally heavily dependent on trade with the UK (particularly agriculture, food and beverage, fisheries and energy) towards new European markets, and non UK suppliers • We are committed to improving self-employed tax credits and providing the same social protections as PAYE workers on a voluntary opt-in basis • As a principal, we want interactions with the state to progress at the normal speed of doing business –This will require revision and simplification of a tax system which has grown complex over decades and the implementation of a user friendly web portal for businesses to file tax returns, employment, compliance, etc • As part of tax simplification, we will introduce opt-in mechanisms to spread tax payments throughout the year which will bring greater cash-flow stability • We will boost the collection of Local Authority rates and apply the saving to all businesses.
Rethinking VAT
It’s time for a rethink on VAT. A huge number of anomalies continue to exist in VAT categorisations. For example: • Sanitary pads and panty-liners attract a 0% VAT rate whereas medical incontinence products are subject to VAT at 23%. • Children’s crash helmets attract a 0% VAT rate whereas adult crash helmets are subject to 23% VAT. • Oral contraceptive solutions attract a 0% VAT rate whereas non-oral methods such as condoms and barrier gels are subject to VAT at 13.5%. We are calling on the Government to ensure that the very many discrepancies in our VAT system are raised and reformed at EU level.
Alternative Budget 2018
Our plan for the economy aims to deliver a fairer society where living is affordable and public services are delivered efficiently and to the highest standards. Our proposals are for a Budget that works in the interests of everyone in our society.