IBEC, Sinn Féin present pre-Budget submissions

IBEC, the group that represents Irish business, presented its pre-Budget submission to Finance Minister Brian Lenihan today. The group stressed that preserving and creating employment, along with stabilising the public finances, must be the priority.

The submission said that Government should use money it is already spending, largely on social welfare, to protect those in vulnerable employment and to help support new employment. A reduced rate of employers' PRSI should be introduced for new jobs in 2010.

IBEC welcomed the recent announcement that an expanded second round of the employment subsidy scheme will be rolled out shortly and said that the scheme must be broadened.

IBEC says that an ambitious jobs stimulus package is urgently required to protect existing employment and help get those on the Live Register back to work. It says a reduced rate of employers' PRSI should be applied for new jobs created in 2010, and companies should be allowed to offset R&D tax credit relief against either their employer's PRSI liability or corporation tax.

Sinn Féin has also published its pre-Budget submission, which calls for the raising and saving of €7.5 billion, and the spending of €3.2 billion in a stimulus package to encourage economic recovery.

The party is calling for a third rate of tax on incomes over €100,000, the aboliton of the PRSI ceiling, a 1% wealth tax on all assests worth more than €1 million, and the standardisation of discretionary tax reliefs.

Sinn Féin is proposing a cap on public sector pay to €100,000.

In its proposed stimulus package, the party is suggesting a €600m jobs retention fund for small and medium enterprises; a price freeze on state-controlled services; an extra €2 billion on increasing community employment schemes and a new National Development Scheme involving labour-intensive infrastructure work.

Sinn Féin is also suggesting a 20% cut in excise duty on alcohol for the four-week period from Budget Day to after Christmas.

There is also a household stimulus package, involving the re-introduction of the Christmas bonus, the protection of child benefit and social welfare rates, and the freezing of everyday expenses like public transport and TV licences.