The next government here must immediately boost public investment, which has collapsed during the economic recession, according to the think-tank Social Justice Ireland.
The independent body has also called for the state's tax-take to be increased in such a way as to avoid exacerbating income inequalities and for an off-balance sheet investment programme, particularly in the area of housing.
In its document titled 'Choices for Equity and Sustainability', Social Justice Ireland said the next programme for government must focus on investment in infrastructure and services, arguing that a dearth of funding for housing, health, childcare, rural broadband and education is threatening economic growth and stability.
It said levels of poverty, homelessness and deprivation are higher now than when the economy crashed eight years ago and that our services and infrastructure are nowhere near the western European average.
While noting the economy’s sustained expansion over recent years, it said reported growth rates need to be treated with caution partly because of serious distortions caused by large transnational corporations repatriating their profits.
The think-tank urges the next government to launch a substantial public investment programme, which would also embrace improvements in water infrastructure, arguing it would benefit the economy, business and society.
It also said Ireland can never hope to build European levels of infrastructure and social provision while collecting substantially less revenue than the European average.
It proposes that the country’s total tax-take should be raised to 34.9% of Gross Domestic Product, the threshold for a low-tax country established by the EU agency, Eurostat.
However, it said this should only be done in such a way as to avoid exacerbating current income inequalities.
