Cori calls for end to 'crisis' rule

The social policy watchdog said the State faced a crucial choice in whether to reduce services and infrastructure or increase the tax-take to pay for them.

Cori director Fr Sean Healy said it should aim to reach a series of goals by 2015 and create a fairer tax system in the same time frame.

“It is not sufficient to move from one crisis to the next,” Dr Healy said. “It is crucial that government sets out a clear vision of the future it wishes to see Ireland have in five to seven years and identity a credible pathway to reach it.

“People need to see the destination and the pathway to it if they are to have confidence in supporting initiatives in difficult times.”

In its latest Policy Briefing, Cori said Ireland faced hard choices in the months and years ahead.

It found while services in health, education and welfare are not at the level expected of a country with Ireland’s wealth, infrastructure like public transport and broadband was also inadequate.

It said some improvements could be made with better value for money, but not enough to reach the levels demanded by most Irish people.

However, the Policy Briefing said Ireland could finance public services and infrastructure in the long term by implementing a number of tax initiatives over the coming years.

They include building a fairer tax system for low earners, introducing environmental taxes and reforming and broadening the tax base.

It also highlighted Government plans to borrow €13.4bn in 2009 – of which €4.7bn will go towards day-to-day expenses.

“This situation cannot continue for long,” Dr Healy added. “It is extremely important that the issue of taxation be addressed from a long-term perspective. Otherwise short-term decisions may only increase the problems being faced in the long term.

“Billions of euros could be made available if the tax system was reformed and tax base broadened.”