The European Commission is encouraging the government to continue with its controversial tax individualisation policy and improved childcare provisions in the next budget. The European Commission urges the Government to follow through on its approach to individualisation, in order to increase the participation of women in the labour force. This evening, the National Women's Council urged the Minister for Finance to respond generously to the childcare recommendations.
Before the rumpus broke out over the tax individualisation measures in the last budget, the European Commission had actually encouraged the Government to address the below-average participation of women in the labour market. Now, in a review of the Ireland's employment policies, the Commission praises the individualisation measures introduced in the budget. The comments are contained in a draft of the Commission's final report, which has been seen by RTÉ News.
The report draws attention to potential shortages in the Irish labour market. It says that more must be done to increase the participation of married women and older workers in the labour force. It also recommends attracting foreign workers to address skills shortages. The review also suggests the Government must follow through on child-care measures taken in the last budget.
In the controversy that followed the tax individualisation measures, the Minister for Finance, Charlie McCreevy, supported by the Tánaiste, Mary Harney, indicated that he would retain the approach in his next budget. If Mr McCreevy needs encouragement to persist, this document seems to provide it.
