The message many economists still send out, on equality and social exclusion issues, is that like labour, they must wait until we get the economy right; until resources become available; until the more central economic problems have been resolved. The attitude is that the social issues are marginal items.
My attitude is the opposite; that we can't get the economy right without putting social issues centre-stage and insisting on their centrality at all times.
A commitment to achieving this balance is stated explicitly by the social partners in P2000 and is reflected in the full title of the agreement Partnership 2000 for Inclusion, Employment and Competitiveness. The concept and practice of social partnership in pursuit of those objectives, is now generally recognised as a key factor underpinning Ireland's recent economic success.
However, it's not enough to marvel at the fine words in chapters four and five of P2000, which deal respectively with Action for Greater Social Inclusion and Action towards a New Focus on Equality. They bear reading and re-reading; they do contain extremely important commitments.
The major point is that now, more than halfway through the life of Partnership 2000, many of these commitments have not been honoured. There is a danger they may not be honoured by the end of 1999: that we will start the new millennium with considerable poverty, inequality, discrimination and disadvantage.
Our tiger-like economic performance cannot continue unless all members of our relatively close-knit society can share in its fruits.
That's why SIPTU has already published its pre-Budget submission A Budget for the Needy nor the Greedy shaped by its commitment to equality and social inclusion.
December's Budget is vital to Ireland's economic and social progress. It's the Government's last chance to ensure the commitments made in Partnership 2000 are honoured. The opportunity to radically reform the income tax system in favour of people on low incomes must not be missed. The resources exist to achieve such reforms and this group. Pensioners, women, young people, low-paid workers and families living on a combination of welfare and low wages must not be asked to wait any loner. Ideally, we should move to a system of tax credits to ensure equity in taxation. But if that can't be done in 1999, virtually all the available resources should be concentrated on increasing the personal tax-free allowances.
What SIPTU has suggested achieves several key objectives. It would mean no PAYE worker paying tax on income below £100 per week. It would mean no such worker paying the higher rate of tax on income below average industrial earnings. It would mean no married couple (one earner) paying tax on a weekly wage that barely exceeds the proposed national minimum wage.
It would cost £727 million or rather, would give back £727 million to taxpayers who are, for the most part, on low and middle incomes. But it would do so in the fairest way equivalent to a flat-rate increase in income of nearly £6 per week for people on the standard rate of tax and £11 per week for people paying the higher rate. It would not mean leaving insufficient resources for equality and social inclusion measures.
These proposals promote social inclusion by improving the position of the worst-off members of the workforce and making it more attractive for unemployed or discouraged workers to take up employment. The other measure which will achieve this is the new minimum wage and we see it as essential that this be introduced by January 2000 at the latest with 1999 being treated as a phasing-in year.
The minimum wage legislation is crucial to women workers. Of the 23 per cent of employees earning less than the proposed minimum, most are women.
Equally important, in the Budget context, are SIPTU's proposals for welfare improvements and other measures to promote equality and social inclusion. We argue all the main rates of social welfare payments should be increased by at least £5 per week. Also, that all the rates for qualified adults be raised by at least £4 per week. to make up for the grossly inadequate increases this year and improve the `QA' rates as a proportion of the main rates.
SIPTU is also continuing its campaign to remove that particularly nasty poverty and unemployment trap for married women a trap that ensnares thousands of families that depend on a combination of low earnings and income from welfare. It arises where the spouse of a social welfare recipient earns in excess of £60 per week. At this point, qualified adult allowance begins to be withdrawn; by £90 it is fully withdrawn. These thresholds must be substantially increased.
Other Budget measures sought by SIPTU include the establishment of a new pension fund to smooth out the escalating future costs of social welfare pensions; the introduction of a social insurance scheme for carers; the provision of a parental leave payment similar to maternity benefit; and better assistance towards childcare costs through substantial increases in child benefit.
Improving the economic and social position of women and other groups suffering discrimination or disadvantage means moving on many fronts. It involves reforming our tax, welfare and payment systems tackling low pay and low incomes and insisting on more family-friendly practices in the workplace. It involves using the new, long-awaited employment equality legislation to best effect on behalf of anyone suffering discrimination on grounds of sex, race, age, religion, disability, family status, marital status, sexual orientation or membership of the travelling community.
Converting commitment into change and hard cash is a difficult task and December 2nd Budget Day will be a major testing point.
Rosheen Callender has recently been appointed National Equality Secretary of SIPTU; an economist, she was an adviser to the Democratic Left leader, Mr Proinsias de Rossa when he was Minister for Social Welfare.
