SPEAKING at the recent Dun Laoghaire Rathdown Chamber of Commerce AGM, the leading economist, author and journalist, Marc Coleman, noted that while Ireland is out of recession, the continuing strength of the economic recovery will depend on policy decisions made by the people and the Government.
Mr Coleman described Ireland’s young and growing population as the foundation for the long-term prospects for the Irish economy. He likened the recent cycles of boom and bust to the waves on the surface of the sea, when the more powerful and consistent forces are the underlying currents.
Emphasising the need for true Government reform, he said the Government was not spending too little, but spending its money in the wrong areas.
He noted that in 2005 the Government spent e40 billion but despite
“austerity
?, Government spending has risen e19 billion since then.
While acknowledging the valuable work they perform, Mr Coleman stated that public servants should not be paid 40 per cent more than their counterparts in the private sector and that their pay and pensions should be linked to those of public servants in countries such as Germany, France and Holland.
He pointed out that the unfunded public service pension liability of e98 billion dwarves the cost of the bank bailout. These costs must be constrained and the funds directed toward improving services for those enduring inordinate financial stress, he stated.
Calling indirect taxes too high, he noted Ireland has the highest excise taxes on alcohol and tobacco in the EU which burdens responsible people without addressing the problem of anti-social behaviour by a small minority.
He added that past land use decisions have led to spread out development leaving people little choice but to drive, meaning high taxes on motor fuel are particularly burdensome on Irish people.
He called for tax rates to be indexed, saying that because they were not, a taxi driver now pays taxes at a marginal rate that was originally set for millionaires.
Finally, Mr Coleman called for coordinated policies to encourage higher density development near public transport and in employment centres.
Calling such development necessary to accommodate a growing population and facilitate expanding businesses, he said that proper policies will facilitate this development, strengthen our economic efficiency and create attractive and livable urban neighbourhoods.