Union wants extra €2bn in funding for infrastructure

A trade union has urged the Government to spend €2 billion more next year on public services and critical infrastructure such as social housing.

The Irish Congress of Trade Unions (Ictu) also said there should be no tax cuts contained in the Budget for 2017, which is to be announced next month.

Instead, the trade union has recommended that there should be “growth-friendly” tax rises, targeted towards those who can afford to pay more.

In its pre-Budget submission, Ictu called on the Government to scrap the special 9 per cent VAT rate for the tourism sector.

Ictu general secretary Patricia King said it was wrong that this sector should continue to benefit from a reduced rate of VAT, "while it is also the home of high levels of precarious work and low pay".

She said this measure had cost the State €2.1 billion in tax foregone.

She said that while they were enjoying the benefits of the lower VAT rates, employers in the tourism sector were refusing to participate in or co-operate with Joint Labour Committees - which were re-introduced under legislation by the previous government - which were designed to improve pay and conditions for workers.

PRSI

Ictu also proposed increasing employer PRSI on the portion of salaries above €100,000 in order to fund childcare provision, as well as the introduction of a new “net wealth tax”.

It proposed €1 billion in additional spending should be allocated to a major programme of home-building, and increased investment in education and health.

It also suggested the Government should put in place a new vacant site levy.

Ms King said: “People deserve an inclusive equality-proofed Budget that places the welfare and betterment of the majority at its very core, a Budget that will prioritise higher living standards, and deliver this through a transformative programme of investment in infrastructure, services and service delivery.”