McCreevy's double standard

     
We are ...an open community based organisation, owned by our members, run by volunteers. Competition or profit are not on our agenda
``The biggest cock-up in the tax history of the state''. This was how Tony Smyth, Irish League of Credit Unions (ILCU) General Secretary, described the plans announced by Finance minister Charlie McCreevy to tax credit union savings and have Credit Unions report to the Revenue Commissioners any dividends of over £500 paid to members.

This week McCreevy completely abandoned his plans after a wave of opposition from within his own party and in the credit union movement.

The credit union provisions were part of an important piece of government legislation - the 1998 Finance Bill. The bill contains most of the provisions announced in last December's budget.

The most damning element of the Finance Bill's provisions is that McCreevy picked the softest possible target when focusing on the credit union movement. He could not, it seems, tackle the multi million pound free riders of the Golden Circle and at the same time tax those who are using offshore tax havens to avoid paying tax.

It is now more than eight months since the £38 million Ansbacher deposits scam was revealed to the Irish public. During that time the minister and his department have been singularly unable to deal with this debacle and restore public confidence in the state's much tarnished tax regime. There is only one small provision in the bill which deals with this issue.

Another element of the bill is dealing with tax avoidance. Thousands of the top earners in the 26 Counties have found ways to exploit loopholes in the tax code. A survey by the Revenue Commissioners last December showed that almost one in five people with incomes over £250,000 pay income tax of just 20% a year. 8.5% of the top earners paid less than 5%. The effectiveness of how the bill will deal with these issues has been overlooked.

The ILCU described their role in the economy to the McCreevy as ``We are ...an open community based organisation, owned by our members, run by volunteers. Competition or profit are not on our agenda''.

The still unanswered question is why the non profit ILCU was targeted by McCreevy and the corporate tax sharks and free riders have possible another free year.

Finance ministers' record of bungling

     
Charlie McCreevy entered the finance bunglers hall of fame, his portrait nestling alongside many of his predecessors including Ruairi Quinn, John Bruton, Martin O'Donoghue and even Charlie Haughey.
What is it about being Finance minister in the 26 Counties that turns formerly rational politicians (though limited and often mundane people) into blundering legislators whose lack of judgement and political u-turns are becoming the stuff of legend?

This week Charlie McCreevy entered the finance bunglers hall of fame, his portrait nestling alongside many of his predecessors including Ruairi Quinn, John Bruton, Martin O'Donoghue and even Charlie Haughey.

Haughey was quite an effective legislator as Finance minister but it could be argued that it was as master of the state's finances that he decided that life in semi-detached suburbia was not for him and embarked on decades of living beyond his means to the tune of millions of pounds.

Martin O'Donoghue was Fianna Fáil Finance minister from 1977 to `79 and introduced the FF economic programme that culminated in a growing state debt and totally misjudged the economic conditions of the time. The net result was a decade of spending cutbacks and over 250,000 young people emigrating.

John Bruton's plan to introduce VAT on children's clothes and footwear cost him not only his job as Finance minister but also led to the fall of the Fine Gael/Labour coalition.

Ruairi Quinn's tenure as Finance Minister saw him undergo a rapid political transformation casting aside whatever socialist credentials he still retained and re-emerging as a conservative monetarist Finance minister.

One particular failure of the Quinn era was his continual stalling on Labour's commitment to creation of a vibrant state bank. Now it was just more of the steady as she goes financial conservatism that is the hallmark of the department.

So come on down Charlie and enjoy your entry as the latest member of this not very select or exclusive club of ditherers and bunglers. Cheer up though, six of the previous encumberents ended up as party leaders. right now the only way is up.


IJM dispute ends


Cavan Monaghan Sinn Féin TD has welcomed the resolution of the dispute at IJM Timber Engineering in Monaghan Town. The threatened closure of the plant has now receded. Closure would have cost the area 130 jobs and severly damaged the local economy.

Now IJM management have agreed to recognise the Building and Allied Trades Union while locked out workers at the plant have called off their strike action which was due to begin next Monday. Talks will continue to resolve the issues whichg lead to the lockout two weeks ago.

Caoimhghín O Caoilain said in a statement that ``I warmly welcome this resolution. I commend both the trade union and the management at IJM for applying themselves successfully to the settlement of their dispute. It is great news for the town and people of Monaghan''.

£100,000 wage club


There are over 1.3 million workers in the 26 Counties. Hundreds of thousands of these get by on meagre wages and salaries. Wage increases are in small proportions and in the long run few people are any better off.

At the top end of the spectrum though things are somewhat different. Figures released from the Department of Finance show that the number of people earning more than £100,000 a year has more than doubled over the past four years.

In the 1993-94 tax year there were 2,100 people earning more than £100,000. Now in 1997-98 the figure has risen to 4,600. The most common income bracket was the £10,000 to £12,500 which accounts for £133,000 tax payers. Nearly 600,000 people earn less than £10,000. This shows conclusively that though some are creaming it at the top end of the wage scale the vast bulk of workers whose efforts have actually created the economic growth are living on below average incomes.

Ryanair Profits


Further evidence - if it were needed - of why Ryanair should recognise SIPTU and negotiate with baggage handlers on wage improvements was shown in its profit figures for the last three months of 1997.

Profits rose by £3 million to £8.1 million for the last three months. The company made £32 million in the last nine months of 1997. Time to pay up I think.