Raise tax to fund social projects, says Cori

The Government must increase taxes if it is serious about bringing levels of investment in social provision up to EU average …

The Government must increase taxes if it is serious about bringing levels of investment in social provision up to EU average levels, religious congregations have urged.

In its annual socio-economic review for 2006 published today, the Cori (Conference of Religious of Ireland) Justice Commission says Ireland can never hope to address deficits in infrastructure and social provision by collecting substantially less tax than other European countries.

"Small increases in taxation are certainly feasible and there is little evidence to suggest such increases would have any significant negative impact on the economy," Cori's annual review says.

"We believe these increases should not be attained through income taxation, but rather via reforming and broadening the tax base so Ireland's taxation becomes fairer."

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The review by Cori, which represents more than 135 religious congregations, says the lack of social provision is clear for all to see through numerous sets of statistics.

Despite significant progress in areas such as employment, it says society is still blighted with problems such as growing levels of poverty, unequal income distribution, high levels of illiteracy, a lack of social housing and growing social exclusion.

For example, it says the population at risk of poverty has increased from 15.6 per cent in 1994 to the latest figure of 19.4 per cent.

Other official statistics show that 22.6 per cent of the population is functionally illiterate, while the proportion of State spending on healthcare is 5.5 per cent compared to 8.6 per cent in Germany and 7.4 per cent in France.

Cori says it is clear that Ireland is becoming an increasingly unequal society.

"Despite the substantial resources which have been available, Ireland's poorest people have been effectively excluded from what is required to live life with dignity.

"As this review shows, the rich/poor gap continues to increase.

"Consequently, our already unequal society grows more unequal. A reversal of this trend will only occur if we as a society focus on developing a fairer Ireland."

The 240-page review, Developing A Fairer Ireland, urges the Government to decide on a set of "worthwhile priorities" which should be pursued.

These include addressing social provision deficits; paying fairer levels of tax; developing long-term planning, especially in social partnership; and developing a rights-based approach.