More taxes needed, advisors tell Cowen
Government advisors today urged Taoiseach Brian Cowen to bring in a raft of new taxes including a property tax, university fees and water bills.
The National Competitiveness Council (NCC) said the stark measures were needed to halt Ireland sliding into a prolonged economic depression with high unemployment and emigration.
They also warned against stemming the drop in house prices, which they insist remain too high.
The State’s toxic assets agency NAMA must put seized developments up for sale as soon possible to allow property prices to fall further, they said.
In their report, 'Getting Fit Again: The Short Term Priorities to Restore Competitiveness', the NCC said the second homes tax was a step in the right direction but more taxes were needed.
A tax on all properties including main homes, charges for services such as water and third-level fees, as well as a carbon tax should be considered, it states.
The advisors also suggest public services could be improved while cutting back on resources, which could involve pay-cuts and lay-offs among civil servants.
The introduction of the public sector pay levies had made little impact on the public finances and much more was needed, according to the report’s authors.
The NCC also demanded:
:: the banks be forced to give credit to businesses.
:: a continued swift and painful drop in prices.
:: a further cut in energy costs.
:: investment in training and education.
The economic advisors, who recommend to the Taoiseach what actions government needs to take to improve competitiveness, also insisted key infrastructure projects should go ahead as planned.
Priorities include the completion by next year of the main motorways linking Dublin with regional areas.
The finalising of the southern section of the Atlantic road corridor and investment in rail and bus networks were also important, they stated.
