Ógra Fianna Fáil Budget Submission 2012

Budget 2012

Ógra Fianna Fáil Pre-Budget Submission

‘Protecting

Our

Future’

Ógra Fianna Fáil Pre-Budget Submission Budget 2012

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‘Protecting Our Future’

Ógra Fianna Fáil

Pre-Budget Submission

Budget 2012

Submissions from: Éamon Quinlan (Úachtarán), Gerard Fogarty (Policy & Campaigns Director), John Regan, Paul Anthony Ward (Dublin Organiser), Ógra National Youth Conference, Donagh O‟Malley Cumann (UCC), North Tipperary Ógra and Clare Ógra.


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Introduction:

28th November 2011

With our generation and the one that follows us being burdened by a huge national debt, it is

important that young people have a strong input into how the budget deficit is reduced. We

have to be realistic in our approach to reducing the budget deficit. Austerity does not equate

to savings. Essentially it must encompass increases in taxation, reductions in expenditure and

measures promoting growth. Demand has to be increased in the economy.

With the budget deficit at 10.3% of GDP, the Government‟s Medium-Term Fiscal Statement

intends to reduce public expenditure by €7.7 billion and increase the tax take by €4.7b

between the next fiscal year and 2015. The budgetary adjustment for 2012 must be €3.6b.

The biggest difficulties in reducing our budget deficit is the deflationary effect on the economy

and conditions set down by the European Commission and European Central Bank and

conditions set under the funding programme of the European Financial Stability Fund. Like

the National Recovery Plan, the statement acknowledges that in order to achieve the deficit

target of 2.9% of GDP by 2015, in addition to increases in taxation and reductions in

expenditure, that we must increase our GDP. The Government are expected to reduce the

deficit in 2012 by €3.8b with €1.6b in taxation measures and €2.2b in expenditure measures.

Uncertainty is one of the biggest hindrances to growth in the economy. The Government‟s

Medium-Term Fiscal Statement, unlike the National Recovery Plan, is in reality, lacking in

comprehensive clarity as to the Government‟s fiscal strategy for the next few years, and as

such, fails to achieve its own objectives. However, it is expected that more clarity in regard to

taxation and expenditure measures over the next three years (2013-2015) is to be presented

in the budget statements. Instilling confidence across the economy has to be the one of the

main objectives of the Government‟s fiscal policy. In addition to more clarity in regard to the

exchequer finances, the Government needs to outline a plan for economic development and a

new economic model. The Government‟s handling of the economy so far has been

inappropriate in its ad hoc approach, and they will have to provide a long-term view on the

budget days.

Ógra are eagerly awaiting the publication of the comprehensive expenditure review and the

estimates of receipts and expenditure for 2012 as well as the most recent figures on the tax

receipts. Growth projections for 2012 differ amongst different agencies from between 1% and

2.3% in GDP terms. The Fiscal Statement projects growth to be 1.6%.

The following are Ógra's proposed policy amendment measures and their projected yield for

Budget 2012 to make savings in line with the Government‟s deficit reduction parameters.

Projected Yield of Recommended Measures: € 3,855m*


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Section I - Responding to the Euro Crisis:

Over the past two years confidence in the euro currency has been severely eroded.

Monetary union under the Maastricht Treaty has failed as the measures set out lacked the

political will for an effective monetary system. We need a comprehensive authoritative

package of rules to deal with the current crisis and provide substantive monetary and fiscal

co-ordination to tackle future challenges pro-actively as they arise. Fiscal union is required.

This package must have at its core: price stability, financial stability and overall confidence in

currency. Decisive and long-term action is required to save the single currency. The ad hoc,

reactionary packages aimed at promoting confidence in the eurozone are no longer working

and are not fooling the markets. This is evident with the developing debt crisis spreading

across eurozone countries and the recent failed bond action in Germany.

Euro Stability Bonds

There are various options open to the eurozone regarding the issuance of Stability Bonds e.g.

the full substitution by Stability Bond issuance of national issuance, with joint and several

guarantees or the partial substitution by Stability Bond issuance of national issuance, with

joint and several guarantees, amongst other options. The first option would have more

positive effects on stability and integration and would abolish market and interest rate

pressure on Member States. However, it is likely that this would require Treaty amendments.

As well as alleviating the sovereign debt crisis it would make the financial system more stable

and resilient to future challenges and provide more effective monetary policy. Other measures

like quantitative easing are unlikely to be agreed to.

Governance

The eurozone requires extensive rules with regard to the governance of the euro currency

and particularly stricter rules on fiscal and monetary policy with particular regard to price

stability, financial stability and strengthening the euro currency. These rules need to be

backed up by stringent Fiscal Approval Procedure which involves thorough scrutiny and

surveillance of national budgets and their enactment. Where national governments fail to

abide by the rules, enforcement procedures will first include revision of policies followed by

disciplinary procedures including penalties and sanctions and an administration procedure in

severe cases. The provisions under Article 136 of the Treaty on the Functioning of the

European Union are adequate in our opinion to put such rules in place. Further amendments

may be required by way of treaty protocol amendments.

European Financial Stability Fund

The EFSF and European Stability Mechanism are ultimately insufficient to deal with the pan

eurozone debt crisis. Italy may need funding in region of €600 million from the IMF. We feel

that EFSF will have to be extended by at least €1 trillion. With solvency restrictions on the

ECB, the stability fund should be permitted to act as a guarantor and provide confidence in

the European banking system.


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Contingency plan

The Government will have to ensure that an effective contingency plan and that the requisite

support is put in place in the event of the common currency collapsing.

Commission budget cuts

The budget of the European Commission has grown vastly in recent years to €129 billion this

year with a 2.2% increase. This is causing increased difficulties on countries who are

introducing austerity measures. The budget needs to be frozen for 3 years.

Lowering Ireland’s Cost of Borrowing

The Government must use its bargaining power to reduce loans with the ECB and attain

cheaper funding and must be bold in tackling the eurozone crisis.

Section II - Taxation Measures:

A permanent strategic restructuring of the tax system is required. A widening of the tax base

is crucial. Increases in income tax in particular are deflationary. The following

recommendations are intended to broaden the tax base and make funding more sustainable

in the long-term and progressive.

Domestic Utility Levy

A temporary levy to be put on all private residences. The levy shall be €250 in the case of

principle private residences and €500 in the case of non principal private residences. This

levy will replace the television license but €150 of it can be ring-fenced for RTE with the

remainder to be provided for water and broadband infrastructure. The television license has

become irrelevant as most houses have at least one television set and the scale of fraud and

cost of regulation is unnecessary waste. As such we feel that this will increase the amount of

money raised from the television license and lower costs. A graduated payment system

should be put in place to assist low income earners and administration can be continued by

An Post to save administration costs. The current NPPR levy is charged on a self-assessment

system. We propose that the Property Registration Authority database be used to ensure full

compliance with this new levy.

A site valuation procedure and water metering will have to be put in place as soon as possible

in order for this levy to become a value based property tax and water charge, also taking into

account new houses where stamp duty has been paid. This will lead to the gradual removal of

stamp duty on real property. Money will be given to local authorities with the Local Authority

Grant to be reduced proportionately.

Yield: €450m & €90m

Universal Social Charge


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While the income levy was lauded for being very progressive the USC was very regressive in

that it raised tax for low-income earners and brought many more into the scope of the tax

while reducing the burden for many on higher incomes. We are proposing a decrease in the

lower rate of USC and increase in the higher rates to reverse this, as follows:

Total income: Rate:

Below 10,036 0%

10,037-16,016 2%

16,017-75,036 6%

75,037-174,980 8%

174,981 and above 10%

Yield: €400m

Environmental Levies

Increase the Plastic Bag Levy to 50c. Extend the levy to all carrier bags made of plastic.

Yield: €10m

Introduce a Bottle & Tin Recycling Scheme whereby all plastic and glass bottles and jars and

tin cans etc. will have a levy attached of 5c per item which in turn will be refunded when the

item is brought to local recycling centres. Local authorities will be required to provide recycling

centres to facilitate this scheme and encourage recycling of waste. The infrastructure will cost

€10 million.

Yield: €40m

Value Added Tax

We are urging the Government to avoid the front-loading of the higher rate of VAT increase

and to follow the path set out by the National Recovery Plan in this regard. The current higher

rate must be maintained until January 2013 as per the NRP as the front loading will erode

consumer confidence and lower much needed demand in the economy and as such won‟t

return the expected VAT take. It will particularly affect the January post-Christmas sales. The

ESRI have commented that such an increase will be largely regressive.

Ógra proposes a transfer to the higher rate of VAT on sugar and all items containing sugar

e.g. confectionary, drinks etc, whether consumed in a retail outlet or a restaurant etc. This a

key policy in regard to health promotion, to reduce the amount of sugar consumed particularly

by children. We are also proposing a reduction in the rate of VAT on fruit juices, smoothies

and bottled water to zero.

Yield: €40m

There are many distortions across the VAT code; a wholesale review of VAT rates would be

welcome.


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With high costs affecting the most vulnerable organisations in our state, we are proposing to

allow schools and registered charities to claim back VAT on their costs.

Deposit Tax

With many people saving money and a lack of confidence and demand in the economy, we

propose an increase in Deposit Interest Retention Tax from 27% to 30%.

Yield: €25m

Income Tax

While there has been a commitment not to increase income taxes, we are concerned that with

reversals on other commitments and the possibility of lower receipts at the end of November

that the Government will not commit to this. Income taxes are the most growth distorting taxes

after corporation tax. Even the OECD recommends limiting income tax increases. It is

however necessary to adjust the income tax system to make it more progressive. Current

bands and tax credits must be maintained. As such we have outlined changes above in

regard to the USC. We further propose an increase in the higher rate of income tax back to

42%.

Yield: €300m

As there will become greater demand on the Social Insurance Fund, we also believe that Pay

Related Social Insurance should be chargeable on all income, including passive income,

across all PRSI classes.

Yield: €400m

Corporation Tax

We must increase our levels of Foreign Direct Investment. The low rate of corporation tax is

central to this and must be maintained at 12.5%.

Domicile Levy

The domicile levy only brought in €1.48 million since its enactment. There are approximately

440 high-net non-resident taxpayers who should have been liable to the levy. We urge the

Government to complete a thorough review of the levy and relax the conditions applicable to it

to target more of the individuals concerned in 2012 and raise the levy to €300,000.

Yield: 12m

Capital Taxes

As capital taxes, particularly Capital Gains Tax are substantially similar to income tax; we feel

that in order to make these taxes more progressive, a second, higher rate should be

introduced on gains/acquisitions of €80,000 or higher of 40%.

As agricultural relief and business relief are similar and many, who don‟t qualify for


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agricultural relief, qualify for business relief, the two reliefs should be merged.

The CAT exemption thresholds must be reduced largely, particularly considering the deflation

experienced by the economy of the past few years.

Yield: €250m

Excise & Carbon Taxes

Excise on fuel and cigarettes should not be increased to avoid loss of demand due to

smuggling and cross-border trade. Health promotion is important and we feel that the issue of

below cost sale of alcohol needs to be addressed as does the decline in the vintner‟s trade.

We propose a 25% reduction in excise on alcohol for pubs and restaurants to be offset

against a proportionate increase in duties for off licenses.

We propose an increase in the Carbon Tax beyond the NRP to €40 per tonne by 2014.

Yield: €400m by 2014

Motor tax must be maintained at its current rate.

Miscellaneous Provisions

The Government must reduce relief landlords receive on loan repayments for residential

property to 50%.

Yield: 95m

The relief for pension contributions should be curtailed to 30%.

Yield: €100m

Finance Act (No.3) 2011 provided for changes in the tax code following the coming into force

of the Civil Partnership Act 2010. However there are approximately 12 tax provisions which

do not provide tax equality for civil partners. Civil partnership is a structural barrier to

achieving full equality in the area of taxation. We therefore urge the Government to follow our

recommendations in our marriage equality document for social and tax equality.

Total Yield for Taxation Measures: €2,662b

Section III - Current Expenditure Measures

Job Creation & Growth:

With unemployment at 14.4% (CSO, October 2011) the Government needs to encourage

demand and job creation in the economy.


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JobBridge

JobBridge has failed to tackle the jobs crisis as it was projected too. It has permitted some

companies to exploit it as a mechanism for cheap labour. We propose the merging of

JobBridge, TUS, Rural Social Scheme, National Internship Scheme, etc, to be replaced with a

€100 stipend, on top of the welfare payment, for work and training in community sector,

enterprise or public sector internship. The merging of the existing schemes is the key to

efficiencies and lower administrative costs. The scheme should allow for 25,000 additional

places by end of 2013

Cost: €40m

The Government must legislate to re-establish the Joint Labour Committee (JLC) Wage

Setting Mechanism. This must be done according to the proposals outlined in the Report of

Independent Review of Employment Regulation Orders and Registered Employment

Agreement Wage Setting Mechanisms. The JLC is an essential mechanism for protecting the

incomes of the lowest paid & most vulnerable workers. Most relevantly, this Independent

Review stated that cutting the wages of the low paid will not lead to a significant increase in

employment.

Promoting Enterprise

The Government must maintain the tax relief for start up companies. While Ireland has one of

the most administratively low corporation tax regimes in the world there is still an over-

complicated regime for starting up companies. The Government needs to follow international

models and establish a one-stop-shop system for start-ups which will reduce costs,

administration and time.

A radical and extensive €500m state loan guarantee scheme needs to be put in place as soon

as possible to provide credit for new traders and traders who are coming under increasing

pressure to cover their current expenditure.

The Government needs to take the challenges experienced by businesses seriously and

tackle the high rents being charged by commercial landlords. Businesses need to lower costs

and lower prices if they want to remain competitive. We oppose plans to extend the maximum

retail store size to allow the entry of „hyper-markets‟. In addition to the commercial rents

review a commercial rates review needs to be carried out with national regulations if

necessary. This is a serious challenge for the retail sector and the Government really needs

to be radical in its approach.

Driving Exports and Intra-Community Supplies

While exports are stronger and national product remains quite low, the indigenous economy is

dangerously weak. We must stimulate our export led growth and encourage indigenous

businesses to target international markets. Simplifying the complex VAT rules will remove a


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key barrier to this. To reduce costs for businesses, Ógra are proposing tax relief at higher rate

of VAT on advertising Irish businesses and Irish products in international markets.

Businesses must also be encouraged to target emerging markets and our double-taxation

agreement network must expand as required.

Innovation, Research & Development and Intellectual Property

We must promote innovation and research and development amongst our indigenous

businesses and start-ups and promote Ireland as a centre for R&D. Gross simplification of the

rules regarding R&D grants and tax credits must be made in order to encourage its use.

Ógra proposes the introduction of a lower, 10% corporation tax rate for profits from patents;

similar to the UK‟s proposed “Patent Box”. We must move fast to ensure that we remain

competitive as a location of choice for international and indigenous innovators. As the rate

proposed in the UK is 10%, a similar rate in Ireland is necessary.

Costs: €10-12m

Total Yield for Job Creation & Growth Measures: €-8m

Public Sector Reform:

Rationalisation of State Bodies

Ógra strongly welcomes the proposals by the Government in relation to public sector reform. However they are far less ambitious than what was promised in election manifestos and leave a lot to be desired. The reform agenda needs to be more comprehensive.

Introduce a nominal charge for all visitors (excluding retired and children) to state assets, e.g. National Museums, National Gallery etc., for €2.50 minimum. This measure is not to raise money but to cover costs associated with maintenance and reduce the grant to these assets.

5% cut to RTE taking into consideration expected greater footfall from the utility levy with funding ring-fenced for RTÉ. Yield: €10m

County Enterprise Boards to be merged in line with VEC rationalisations.

The HEA should examine the rationalisation of third level institutions to improve quality of education and create efficiencies.

Merge the 30 Education Support Centres into the Teaching Council.

Abolish Regional Authorities and Assemblies.

Merging of County Councils from 36 to 25: e.g. Carlow & Kilkenny, Limerick County & City, Waterford County & City, and Tipperary North & South.

We call on the reformation of a more democratic Seanad rather than abolishing it.

Total Yield: €50


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Public Sector Pay

We welcome measures put in place by the Government to reduce civil service numbers

and savings from ministerial transport.

The Government must ensure that efficiencies and rationalisations are pursued rigorously

but safeguard frontline services.

We call on the Government to enforce the provisions of the recent constitutional

amendment and reduce the wages of the judiciary in line with other reductions across the

public sector.

Yield: €5.5m

Defer pay increments due to all civil and public servants for 3 years.

Yield: €250m. €500m over 3 years

Lump Sum payments upon retirement and termination should be capped at annual

pension rate and fully liable to income tax and the USC. Cap all public sector pay, lump

sums and pensions at €150,000.

Yield: €3m

Require all civil servants and public servants (teachers, nurses, doctors etc) to work an

additional 1.5/2 hours a week. This will reduce the numbers that need to be recruited later

and cuts overtime bill, substitution bill and supervision bill. Teachers would be expected to

teach, Gardaí expected to be on the streets, doctors expected to be seeing patients and

civil servants expected to be working. This will require a renegotiation of the Croke Park

deal which we feel will eventually occur during the lifetime of the agreement anyway.

Yield: €500m over 3 years

Remove exemptions to minimum retirement age for Gardaí, teachers and nurses.

Incentivise early retirement schemes for all civil and public servants to save the long-term

pay bill.

Staff rationalisation and efficiencies are required across third level.

Freeze pay for all public representatives for 5 years. Cuts in pay have been taken by

previous Government and this Government, but more needs to be done. Cap all lump

sums etc. for retiring politicians or those who lose ministerial positions at €80k, subject to

income tax, PRSI and USC. Remove the entitlement for independent TD‟s and Senators

to obtain a “party leader‟s allowance”. Introduce a pension cap of €1,000 a week for all

public office pension holders, liable to USC and make further expenses reform so that

they are vouched fully transparency.

Yield: €6m

We feel that members of the Oireachtas have an elaborate expense regime covering

travel, constituency office support, phone bills, printing, and postage as well as having

parking, office space, equipment, personal staff as well as other Oireachtas administrative

staff, subsidised food and other perks. We propose a 50% cut across the board for all

elected members to bring their wages more in line with the average industrial wage. This

reduction will also affect Government Ministers, Ministers of State, An Taoiseach and the


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President who all have additional benefits including more staff and drivers. The intention

of this decrease is to save money for the exchequer, return some public confidence to the

political system and bring public representatives' standard of living closer in line with that

of the electorate.

Yield: €7m

Government officials estimate the public service pension bill will increase by 50 per cent

over the next seven years, double in 15 years, and almost treble by mid-century. In other

words, it would increase from €2 billion in 2006 to some €6 billion in about 50 years.

These figures do not factor in future pay rises. We therefore propose the change defined

benefit pension scheme to career average payment and make them liable to the USC and

remove pay parity.

Total Yield for Public Sector Reform: €450m

Banking:

Regulatory Toolkit

To ensure appropriate scrutiny and surveillance of financial institutions, we propose that the

regulatory directorate of the Central Bank of Ireland is given wide ranging powers as part of

their investigative toolkit to conduct surveillance, search, seizure and questioning functions

etc. as part of their ongoing functions.

Debt-management and other related financial service companies need to come under the

scope of the Financial Regulator.

Banking Inquiry

We feel that a necessary element to reinstalling public confidence in the political system and

in the economy is to fully address the issue of how our current crisis arose. Ógra have

previously called for a full comprehensive independent banking inquiry. The Government has

already conducted a behind-the-scenes inquiry culminating into three lengthy reports. It is

necessary to put a line under the issue and conduct a full parliamentary inquiry into the

matter. While it is widely held that the Oireachtas cannot conduct parliamentary inquiries on

foot of the Supreme Court decision in Maguire v Ardagh [2002], we are of the opinion that the

decision does not revoke that power of inquiry. The Supreme Court did not address the issue

as to whether the Oireachtas had the inherent power to conduct such inquiries it merely held

that an inquiry may not make adverse findings which adversely affect the good name of any

person, breaching their fundamental enumerated right under Article 40.3.2 of the Constitution.

We are of the opinion that while legislation will be required, a constitutional amendment will

not be required to conduct an inquiry into the banking crisis once the findings of its report

protects from unjust attack the good name of every citizen.


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Supporting Home-Owners

Ógra propose the establishment of a Debt Settlement and Mortgage Resolution Office to

provide an independent, non-judicial debt settlement system for persons struggling with

personal debt and those in difficulties with their mortgage based on the recommendations of

the Law Reform Commission‟s Report on Personal Debt Management and Debt Enforcement

of last December and the associated draft Personal Insolvency Bill and include the growing

problem of mortgage debt.

Foreign Affairs:

There must be no cut in Overseas Aid and the Government must recommit to raise this

budget expenditure to 0.7% of GDP by 2016.

Social Protection:

Rates

Ógra are urging the Government to protect social welfare rates in the budget to protect lower

income families. Efficiencies need to be found in the administration of welfare, fees (e.g. to

GP‟s), online applications, rigorous enforcement against fraud and review of conditions to

restrict fraud. Research by Barnardos has found that many children in low-income families are

not even receiving 3 meals a day. The focus of social protection must be making the standard

of living for people on low incomes much easier.

Fuel Allowance

Research by the Society for the Saint Vincent de Paul has shown that older people are able

to meet their cost of living however they come under difficulty during winter. This is due to the

loss of Christmas bonus, increasing fuel costs and increase in cold weather. We propose an

increase in the fuel allowance by €30.

Cost: €11m

Miscellaneous

One fundamental inequality in the welfare system is the barrier to self employed people

regarding sick pay. We feel that this needs to be addressed. We also urge the Government

not to transfer the burden on paying sick pay to employers, particularly small businesses. If

the Government are committed to introducing this measure, the maximum employers should

be required to pay is one week.

In order to protect low-income earners further, we are proposing to make all tax credits

refundable. This will address the regressive nature of non-refundable tax credits whereby high

income earners may apply them all and low income earners will not be able to put them

against their tax liability due to the relative size of their tax liability. Back to school allowance

must be processed more speedily to ensure that families can pay for school materials.


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We urge the Government to reintroduce Back to Work Allowance to promote employers to

create jobs and lower their wage liability for the first 18-24 months of employment.

We urge the Government to consider merging different payments to streamline the

Department of Social Protection and reduce administrative costs.

Yield: €150m by end of 2013

In particular, we propose that Jobseekers Benefit and Jobseekers Allowance are merged

leading to graduated payments, for example, for the first 12 months, a recipient would receive

€188, for the next 3 months they receive €180, 3 months following that they receive €170, and

so on down to €150. This is a labour activation measure to encourage people to keep seeking

a job or training. Anyone who goes into training course should receive the full €188.

Yield: €150m saving by 2013

Ógra propose the taxation of Child Benefit to be applied at source alongside tax credits. Low

income and non-earning parents will be required to pay nothing and the measure will be

graduated increasing until someone pays 40%, as per the Commission on Taxation report.

The benefit would therefore increase for low-earners and no-income earners, stay more or

less the same for some parents and would be cut for many others.

Yield: €300m

The Department should work with the National Asset Management Agency for the provision of

social housing schemes in help meet the strong demand for units and introduce probation

period for holders to ensure good standards of maintenance with regular inspections and

possible removal of entitlement.

Total Yield for Social Protection: €439m

Education & Skills:

Third Level Funding & Student Support

We must continue to invest in people and safeguard equality of opportunity in education. With

regard to student support the Government must review the means test for the maintenance

grant and must not reduce the grant. It must not be removed for postgraduates. This closes

entry to fourth level for many low income families, particularly into the teaching profession and

will create a large funding gap for third level institutions, making a big problem a lot worse.

With the welcome enactment of the Student Support Act, the Government must ensure that

the grant is distributed early in the college year to provide for rent and materials.

It is clear that the free fees system does not work. The money invested into universal free

fees could be much more progressively invested into helping low-income families enter third

and fourth level and provide a good quality, internationally recognised third level sector. Ógra


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eagerly awaits the Higher Education Authority report on third level funding. We urge the

Government to stand by their electoral pledge in this budget and consider all options, and

work with all interest groups to create a fair deal for student contributions. Ógra is opposed to

the universal introduction of tuition fees and to caps on student numbers. Access to quality

education is a right that must be maintained.

Protecting Education

We must continue to aim towards a knowledge-based economy as the basis for our new

economic model. The Government must protect class sizes and pre-school programmes and

endeavour to ensure that every child has a Leaving Certificate and as such, funding must be

maintained for the school completion programme, home school liaison scheme and

educational welfare. The growing cost of school materials needs to be addressed.

Regulations need to be put in place to ensure that publishers maintain their current editions

for several years.

We are seeking a ban on retired teachers returning to work to act as substitute teachers,

when there are many newly-qualified teachers who need the experience to start their career.

We call on the Minister to develop a new sports grant mechanism to target primary schools

with the aim of encouraging engagement with sport from an early age and to introduce

compulsory driving tuition to all citizens over the age of 16 to promote road safety.

Health & Children:

We are opposed to charges on medical cards as well as increases in prescription charges.

The automatic entitlement to a medical card for all conditions must be removed.

In addition to changes outlined above in public sector reform, other efficiencies need to made

across the HSE. All payments to GP's need to be cut particularly from nursing home medical

card patients. The grotesque overpayment of consultants needs to be cut.

All other aspects of the health service budget must be maintained. We vehemently oppose

any cuts to front line health services as any reduction will have a serious impact on patient

care. We fervently oppose the closure of any specialist care unit around the country. The HSE

need to put in place an action plan/strategy for the health service. Ad hoc closure of services

is not in the public‟s interest. However if services are rearranged, so that they are operated in

a more efficient manner, it could be to the benefit of the public, but the HSE must outline their

long-term view for all local services. In particular, mental health services must be maintained

with the introduction of 24-hour mental health services.

Ógra condemns the failure to date of the Minister for Children and Youth Affairs to outline her

plans to provide additional resources for social workers to cope with the expected increase in


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demand on social work services with the introduction of mandatory reporting of suspected

child abuse.

The HSE needs to promote more coordination with voluntary community organisations in

providing patient transport and community care.

Total Yield for Health & Children Measures: €150m

Agriculture, Energy & Natural Resources:

We strongly oppose the proposed septic tank levy which is an attack on rural Ireland.

We call on the Government to implement the key recommendations of the Food Harvest 2020

Report which will lead to the creation of many new jobs in agriculture and food and to take

advantage of the removal of milk quotas in 2015 by reforming taxation policies to support

investments for farming and dairy processing.

The Government needs to put measures in place to ensure the thorough retrofitting of

houses. Sustainable Energy Authority of Ireland grant schemes must be maintained and

guaranteed for at least 5 years. Energy efficiency reduces energy costs and creates jobs and

boosts demand. It must be made mandatory on all local authority and cooperative housing

schemes as well as units availing of rent allowance. Mandatory retrofitting could be operated

by imposing conditions on applications for all housing assistance schemes or other means,

for example, as a precondition for registration on the Private Residential Tenancies Board or

imposing penalties on landlords who don‟t retrofit their housing units. A graduated scheme

needs to be put in place for the payment of these services to allow low-income earners

access to the scheme.

We propose a cut in the Energy Research Programme from €14m to €7m.

Yield: €7m

To improve the efficiency of public transport and make it a more effective alternative to driving

we are proposing the renegotiation of the National Transport Public Service Provision

Payments to make them 100% accountable for delays etc.

Total Yield for Agriculture, Energy & Natural Resources Measures: €7m

Justice & Defence:

We must protect local Garda Stations. Cutting these local services does not merit the minimal

savings. As outlined above we need to remove early retirement for Gardaí and ensure there is

more Gardaí on the streets by moving Gardaí out of administrative jobs and transferring other

public servants to those posts. The future of the Garda College needs to be examined as


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soon as possible and a cost-benefit analysis completed on closing the college versus training

new recruits.

There should be a 10% cut in Defence Force numbers by 2013 due to natural wastage and

early retirement scheme.

Yield: €25m a year, €40m in total

Total Yield for Justice & Defence Measures: €25m

Section IV - Capital Expenditure Measures:

Ógra proposes a cut in investment in roads over the 5 years of the Government‟s Capital

Expenditure Programme (Page 16 of Programme) from €2,931 million to €1,800 and the

transfer of €300m into jobs, enterprise and innovation schemes over the 4 years, to invest into

city and county enterprise boards and build up local, sustainable jobs. €300m to be

transferred into the Department of Education and Skills over the 4 years to build and retrofit

schools, return summer works schemes and build third level institution facilities that the

Government cut, in particular DIT.

Yield: €500m+ over the 4 years

All roads programmes except priorities should be scrapped with the savings to be invested in

upgrading the current road network to make it safer and more efficient and repair winter

damage and upgrade street lighting.

Broadband

In addition to the funds allocated for broadband, the additional funding ring-fenced from the

domestic utility levy for broadband should be invested in high speed broadband all over the

island by 2014. This is one of the most important infrastructure requirements for promoting

enterprise, innovation, research and development, the smart economy and attracting FDI and

it must be put in place as a priority.

Total Yield in Capital Expenditure Measures: €180m

Conclusion:

Since the day it was elected, the most striking feature of this Government has been its

emphasis on spin rather than substance. The long list of very specific promises made to

communities and interest groups around the country has been steadily and cynically

abandoned. For Ógra, the complete betrayal on education has been a major concern, but the

betrayal of voters is obvious in almost every Department of Government.

The 2011 General Election was a different election. It was fought on plans to solve the

economic crisis, and it was an election like no other where false promises weren‟t necessary.


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We are calling on our members to play their part in highlighting local promises that are being

broken and also to take a role in highlighting the campaign to uphold election promises at a

national level. Visit www.ogra.ie/brokenpromises.

Ógra recently launched our campaign against cuts in education and student support and

increases in student contributions. Investing in our future has to be a key policy of the

Government. We will campaign rigorously to protect the measures outlined in this submission.

The relentless cynical kite-flying exercises on budget cuts need to end. Scaremongering the

public only causes further damage to growth. As the budget is expected to be split into two

segments this year the Government need to step up to the plate and fill the gaping holes in

the Medium-Term Fiscal Statement to provide certainty and confidence to the economy.

We urge the Ministers to enact the provisions of our costed, fair, alternative budget and

ensure the speedy enactment of the Appropriation and Finance Acts to maximise savings in

the 2012 fiscal year. This budget isn‟t about easy savings; it‟s about protecting our future.

About Ógra Fianna Fáil:

Ógra Fianna Fáil is a progressive, political youth movement based in communities and third

level institutions all across the island of Ireland. It is the youth wing of Fianna Fáil the

Republican Party, but maintains autonomy and independent policies. It presents young

people with the opportunity to get directly involved in politics and political activity. Members

are actively involved in debating and developing policy on a range of local, national, European

and international issues and campaigning on issues that affect young people and their local

communities. Membership of Ógra is open to anyone between 16 and 30. Social activities are

important in Ogra and the National Youth Conference and Summer School, which take place

every year, as well as many other national and local events, are exciting and interesting both

politically and socially.

It was visionary, idealistic and committed young people who founded Fianna Fáil, under the

leadership of Eamon de Valera in 1926. What followed was a momentous national movement

encompassing the ideals of a united Ireland, social and economic advancement and equal

opportunities.

The next decade will present many more challenges for Ógra, but that is what Ógra is all

about: meeting challenges. The vibrancy and enthusiasm of youth is a unique thing that

should be cherished and used to its full potential. Ógra will continue to play a defining role in

the future of Ireland‟s largest political party and in shaping the Ireland we want to live in.

Your future is in your hands

http://www.ogra.ie/brokenpromises


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Contact Us: Ógra Fianna Fáil, Áras deValera, 65-66 Lower Mount Street, Dublin 2. (T) +353 (0)1 676 1551 (E) [email protected] (W) www.ogra.ie www.facebook.com/ografiannafail www.twitter.com/ografiannafail

http://www.ogra.ie/

http://www.facebook.com/ografiannafail

http://www.twitter.com/ografiannafail

Documents

Ógra Fianna Fáil Budget Submission 2012