03/12/2009

Government To Discuss Unpaid Leave Deal

Fianna Fáil backbenchers are expressing disquiet over the proposed pay deal hammered out with public sector unions that involves unpaid leave.

A meeting of the Fianna Fáil parliamentary party is to take place today to discuss the move which could see staff across the public sector taking 12 days unpaid leave to ease the public sector pay burden.

With less than a week to go before the Budget, Minister for Finance Brian Lenihan is expected to brief deputies and senators on progress in the ongoing negotiations between the Government and the unions on the issue.

Howver, despite being entangled in the pay deal negotiations, Congress General Secretary David Begg said today that to pull Ireland out of recession the Government must choose between continued deference to the very wealthy or genuine support for low to middle income earners and the vulnerable.

Speaking at the launch of the Congress pre-Budget Submission, Mr Begg said new taxes on wealth could “generate substantial new resources for the state. We no longer have the luxury of maintaining the fiction that all the wealth in this country has suddenly evaporated. It has not and, in the interests of wider society, it must be pursued and taxed.

"Our own figures show there is real scope for raising substantial sums in this area – perhaps as much as €2.3 billion in 2010 and more in the years ahead.

"We're talking about a new top rate for high earners, a new rate of minimum tax for the wealthy, pursuing tax exiles and raising Capital Gains. These are just a few examples from a range of options we have compiled."

(DW/BMcC)

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