contents...1 contents introduction – survival and revival .....2 where we are – the fiscal...
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Contents
Introduction – Survival and Revival ........................................................................................... 2
Where we are – the fiscal challenge .......................................................................................... 5
Investing to address the economic challenges of Covid-19 and Brexit ..................................... 7
Universal healthcare .................................................................................................................. 9
A right to housing ..................................................................................................................... 11
A new deal for families ............................................................................................................ 14
Funding disability services ....................................................................................................... 16
A green recovery ...................................................................................................................... 18
Equal opportunities in education ............................................................................................ 20
Protecting Workers .................................................................................................................. 22
Agriculture and our Rural Communities .................................................................................. 23
Additional Priorities ................................................................................................................. 25
Enhancing Social Protections: .............................................................................................. 25
Valuing the Arts .................................................................................................................... 25
Reviving Communities .......................................................................................................... 25
Supporting Local Government ............................................................................................. 26
Overseas Development Aid .................................................................................................. 27
Revenue Raising ....................................................................................................................... 28
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Introduction – Survival and Revival
Budget 2021 arrives at an important moment for our country. It arrives in the middle of a
global pandemic that has placed immense strain on our society, both in human and
economic terms. Lives have been lost, families have been separated, people have lost jobs,
and Ireland is still grappling with the challenge of Brexit.
Budget 2021 does not have to be an attempt to return us to where we have been. It can and
should be the start of a better economy and better society.
It will not be enough to weather the storm and return to the Ireland that was.
That pre-covid Ireland was dealing with the consequences of a decade of underinvestment,
lack of access to housing, economic inequalities, and lack of opportunities. All these
challenges remain and many have been worsened by the effects of the current crisis. The
old normal will still be as difficult and divisive if we do not improve our society at the same
time as we try to protect it.
Ireland must invest in itself. Ireland must invest in survival and revival.
We must invest in surviving the worst effects of the Covid pandemic while keeping our
people healthy and safe. We need to provide economic security, protect both mortgage
holders and renters, and keep our businesses alive.
Budget 2021 should commit to the funding necessary to ensure the people of Ireland can
get through the pandemic with the right healthcare, and it support incomes and
communities. We need to invest in those sectors that are being decimated by the pandemic,
ensuring that they survive and that we offer hope of a social and economic revival.
A revival as we come out of the pandemic must be to an economy that is job rich, with a
priority on investing in public services and social goods that will benefit all. We must invest
in a fairer future.
This pandemic is a 1-in-100 year event. Budget 2021 must respond accordingly. We must be
ambitious in responding, borrowing sufficiently to ensure we survive the pandemic until a
vaccine or treatment emerges and the sectors and businesses impacted can be revived –
they were in the main all viable businesses pre-Covid. A rapid return to deficit reduction will
spell ‘austerity’ again for Ireland, and is advised against by the IMF and other international
institutions.
Budget 2021 can be the start of building a state that places people and their wellbeing first.
A thriving society starts with decent public services, providing affordable homes, improving
infrastructure and empowering new and bold ideas focused on our most important
resource: ourselves and our families.
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Invest in a fairer future
The pandemic has made us realise that we are all part of the same society. The failure of
one part of our society threatens the well-being of us all. Continued support for business,
workers, and our communities is essential. We must not undermine our attempts at
containing Covid and restarting a just recovery by reducing supports when they are still
needed.
The state has the opportunity now to borrow money at long duration with rates close to
zero, meaning we can choose to invest strategically to build up our public services now to
ensure that the people of Ireland have quality services for generations to come. This
includes fully implementing Sláintecare, providing social and affordable housing, ensuring
public provision of childcare, and investing further in chronically underfunded sectors like
education and disability.
Thrive in place
It is possible for our citizens to thrive not only in our cities but across our country. Far too
often, to make a decent life, many must leave the places that matter most to them. By
supporting people to live and work in the place that matters most to them, we can share
opportunity across the island of Ireland. The role of the Local Enterprise Offices and other
community-based initiatives should be expanded and the opportunity for remote working
should be further supported to provide good jobs across the country and improve the local
economies across Ireland.
Job-rich recovery
We have learned that some of the least well-paid jobs are the most essential. Pay and
conditions in these roles remain poor, and the supports available to employees are lacking.
Paying a living wage and ensuring statutory employment protections supports Families have
been separated the health and safety of employees and creates good jobs for our society –
not just for employers. We must also fairly compensate the workers that make our society a
more rewarding place to be part of, and those who work in caring roles.
Certainty
At this moment of deep uncertainty and fear, Budget 2021 must provide hope. It must
provide certainty to those most impacted by the pandemic. This includes certainty around
what income supports will be available should people lose their job and the protections for
renters and homeowners. There must be an moratorium on evictions, and no one should be
penalised for having to take a mortgage break.
There needs to be certainty as to what supports are available to businesses to help them
cope with lockdowns and starting up again.
Community organisations are struggling to cope, in particular with their fundraising
capacities wiped out. These organisations need support, including the certainty of
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multiannual funding streams to enable them to cope with, in many cases, hugely increased
costs to deliver services and increased demand for their services.
Budget 2020 was overshadowed by Brexit uncertainty. Budget 2021 needs to rise to the
challenge of today and correct the policy mistakes of the past. We start that process by
investing in a fairer future, providing good jobs and affordable housing,. A better Ireland
starts with long-term investments financed with long-term and cheap borrowing. It uses
that money to fund not just a recovery but a new economic and social model. It is an Ireland
which acts boldly to invest rather than hoping it can avoid the risk of trying something new.
It is an Ireland which values the contributions we all make to our society. It is an Ireland
better than before.
Budget 2021 provides the opportunity to reprioritise. The failings of the state in providing
appropriate public services became abundantly clear with Covid. The priority now must
ensure that the recovery is fair and progressive.
The following principles should underpin all decisions in Budget 2021:
1) Prioritising the needs of the most vulnerable
2) Funding should be planned and targeted to achieve reform: emergency funding
should not be layered on top of dysfunctional systems. Budget 2021 provides the
opportunity to begin to correct fundamental flaws in how we provide key public
services, e.g. health, housing, childcare.
3) Investing in public services to strengthen our society and our economy. There should
be no tax cuts.
4) Investing in the social contract to drive down the cost of living for everyone.
5) Ensuring a job rich recovery by concentrating on generating quality jobs, investing in
job-rich capital projects and in upskilling and education.
6) Prioritising capital investment in targeted areas.
7) Prioritising quality of life in every budgetary decision.
Starting with Budget 2021, the key priorities, based on the above principles, that the Social
Democrats identify are:
• Properly fund mental health services
• Maintain PUP payments
• Establish a national sick pay scheme
• Fund 150 ICU beds
• Establish a commission on the introduction of a statutory right to flexible work,
including a 4-day week
• Targeted supports for business sectors most impacted by Covid-19
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Where we are – the fiscal challenge
The economic picture has changed dramatically in the year since the last Budget. In response to the pandemic the deficit has widened due to an expansion in government expenditures and a reduction in tax revenues. This section evaluates the current economic landscape, the uncertainty facing economic analysis at this time, and the policy responses required to help Ireland prepare for the future. The Department of Finance’s April Update modelled a yearly tax revenue decline of 16.4% to €49.6 billion based on income tax decline of €4.7 billion, VAT decrease of €2.8 billion, a shrink in excise of €0.8 billion, a collapse in corporate tax receipts of €0.7 billion as well as smaller amounts of declines in the smaller tax measures. The September Fiscal Monitor shows that tax revenues have held up well despite the challenging conditions. In short, Ireland has thus far avoided the worst-case scenario modelled in April Update. Tax revenue has performed better than expected largely due to the strong performance of Income Tax (€2.1 billion), Corporation Tax (€1.9 billion), VAT and Excise Duty (€1.2 billion), and better performance in some smaller tax heads. This has resulted in a tax revenue outturn of €7.0 billion ahead of the profile for September. On the Expenditure side, there has been a total increase of €7.7 billion over expectations with the largest increases in Social Protection (€6.2 billion) and Health (€1.2 billion). This is largely the result of the stabilisers deployed by Irish state early during the Covid-19 pandemic. While Ireland’s international trade focused sectors have held up well, the domestic Irish economy has experienced a sharp contraction of 20% year-on-year reduction in exports (excluding chemical and pharmaceutical products). As a result of the pandemic at the end of August, some 700,000 people relied on the state for their income or had their employment subsidised by the state (Jobseekers, PUP, and the Wage Subsidy Schemes). This level is unlikely to reduce in the short term as the Department of Finance estimates that the unemployment rate will remain above 10% in 2021 and this may worsen in the event of further restrictions This leads to a total deficit of €9.4 billion at the end of September in contrast to the €8.8 billion originally forecast. While tax revenues have held up, expenditures have increased beyond the expectations of April (largely owing to the July Stimulus measures) and so the net position is largely the same as baseline expectations. The projected deficit for 2020 is now in the region of €23 billion to €30 billion with the Government expecting to run a reduced deficit of between €15 billion and €19 billion in 2021. It is from this base that Budget 2021 must continue the fight against Covid-19 and prepare for the possibility of a no-deal Brexit. Both of these challenges are sources of deep uncertainty. A no-deal Brexit is expected to cause a long-run decline in Irish output of 1.3%. A no-deal Brexit is likely to impact sectors which have thus far weathered the storm of Covid-19
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It has become more important that Ireland is able to provide the stimulus and support which is economically and socially necessary. The state needs to take the lead and invest. This starts with a long-term strategic deficit of 2% per annum directed at projects which will boost economic growth and improve quality of life. This deficit, funded by long-term borrowing at the low rates available on international markets (Ireland sold a 30 year bond in September 2020 at 0.52% with a cover ratio of 1.9) can help undo the decade of underinvestment in infrastructure while producing good, well-paying jobs. The sectors which need investment are clear. Housing, health, childcare and community development all require funding to fully meet the needs of the Irish people. This investment can be structured in a number of ways including a national investment fund in line with recent measures in the Netherlands or it can be a set of bespoke debt raising targeting specific sectors. Regardless of the approach, providing a stable and reliable stimulus shelter businesses and households from some of the economic uncertainty. While the level of debt facing Ireland is a concern, there are two approaches to debt. The first is to assume that economic growth is not possible and to cut public expenditures to avoid increasing the deficit and then to go into surplus in order to pay down debt. This approach has been succinctly described as austerity. The other is to grow the economy by investing prudently and in areas where there are long-term economic benefits from doing so. The latter approach of investment-led growth has the advantage of blunting the worst effects of our economic challenges while fixing the social and political failings of the last decade. This approach is being supported by central banks globally, who are committed to keeping the cost of borrowing low in the near term. In the case of the European Central Bank, they have also committed to a bond purchasing scheme to help improve the access of states to credit. Global central banks encouraged fiscal stimulus before the pandemic started. With the pandemic this has become essential. Our European colleagues are taking this advice seriously. They are expanding spending programmes and preparing to invest in improving their economies in the long term. Proactivity is the order of the day. Budget 2021 is being developed under deep uncertainty. 2021 can be the start of the state investing in our economic and social wellbeing, and offer people hope. It can help our economy and society survive the impact of Covid 19, and look towards revival.
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Investing to address the economic challenges
of Covid-19 and Brexit
Budget 2021 can and must be the investment budget. This means fully embracing the potential role of the state in driving economic recovery. The response to Covid-19 showed how the state can be mobilised to protect people in the time of an emergency. This should continue in the area of economic development. Only a socially democratic state, working in close partnership across society, can meet the economic challenges of the day. This means promoting balanced economic development, which works for all. Our principles:
1. Economic growth, and investment in jobs, will bring stability to our public finances. 2. We need to make the resources available for economic investment 3. Economic investment and development is a priority over deficit reduction
Principles in practise:
• Interest rates at below 1%. This means it makes sense to borrow for productive investment.
• Economic investment must be environmentally and socially sustainable.
• Budget 2021 should set Ireland on a path which leads to economic development and growth, rather than deficit reduction and austerity.
Three examples of the investment required in Budget 2021: 1. Drive balanced economic development
There needs to a sustained focus in Budget 2021 on sustainable, regional development. In the first instance, this can be done by greater support for the Leader programme, and the local development boards. The 16 areas identified by the Department of Enterprise in their Focus on 2020 reports provide a starting point for national economic strategy. There should be active task forces set up across these areas to drive economic development, with representatives from all stakeholders. 2. Targeted investment
Budget 2021 must be the budget to help address structural deficits in the economy. Longstanding problems in Ireland, such as lack of investment in broadband, must now be addressed. The state should lead out on the roll out of national retrofitting programme. In addition, a series of targeted investments in appropriate public transport projects should be launched. The state should consider taking equity in key economic projects where they require investment to survive. There needs to be targeted supports for sectors under particular pressure resulting from Covid-19, such as transport and travel, the arts and entertainment, and hospitality.
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3. Training and upskilling Budget 2021 should be the budget which ensures appropriate levels of investment in education, training and upskilling. New resources need to deployed across the country to ensure that people are adequately prepared for the development of a new green economy. Workers in sectors which have been particularly hit by the impact of Covid-19 must have adequate and appropriate training resources available to them. Ensuring decency in the economy Budget 2021 requires the appropriate intervention from the Irish state to ensure that there is a job rich recovery. We need massive investment in jobs, to offset the impact of Covid 19. But we need to ensure that work pays, and that work is decent and fair throughout the economy. Now is not the time for a conservative state. Now, more than ever, we need an active social democratic state to intervene in the economy. Our priorities in Budget 2021 to support incomes are: ➢ Maintain PUP payments: Much of the
cost of the temporary wage subsidy
scheme can be recouped from the SURE
initiative. With rising uncertainty due to
Covid-19, we must ensure that there is
certainty in incomes for workers
throughout the economy. This is critical
for the domestic economy to ensure the
maintenance of purchasing power.
➢ Introduce a national sick pay scheme.
The failure to provide a proper sick pay
scheme is both a massive economic and
social risk. It leads to a lack of safety and
security. It must be rectified by the State
and employers, and the Social Democrats
are calling for Budget 2021 to ensure that
an adequate sick pay scheme is
introduced.
➢ Targeted supports for businesses most
impacted by Covid-19. Some business
sectors, including tourism, hospitality, arts
and entertainment, have been particularly
severely impacted by the lockdowns and
restrictions of dealing with the pandemic.
These need targeted supports to help
revive these businesses, and sector
specific measures to stimulate demand
and adapt to changing business models.
➢ Work must pay and be of value. We must
ensure that work is adequately paid, and
this means moving Ireland away from
being a low wage economy. As a first step,
we should, in Budget 2021 move towards
the introduction of a national living wage
which can support a decent standard of
living for all workers.
➢ Make work better in Budget 2021.
Budget 2021 should ensure that work is
high quality and secure. With huge
numbers of people now working from
home, there is a need to introduce polices
which make home working better. We
would establish a Commission on the
introduction of a statutory right to
flexible work, including a 4-day working
week.
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Universal healthcare
The year 2020 brought unprecedented challenges to Ireland’s health service after the
outbreak of Covid-19. The pandemic graphically exposed our public health service as totally
inadequate, forcing a system already operating over capacity to radically change how
services are provided, to recruit additional temporary staff, and to source additional
emergency beds from the private sector at significant cost.
Sláintecare
It is vital to ensure that the additional funding now being allocated to the Department of
Health not only caters for future surges of Covid-19, but is also invested in a way that brings
about the much-needed system of reform set out in the Sláintecare plan. On taking office,
the current Government promised to accelerate the implementation of Sláintecare, but no
timelines or hard commitments have been guaranteed and there is still no plan for financing
the reform programme.
The Social Democrats are calling on the Government to lay out a 10-year funding
programme for Sláíntecare and to include this cost in the pre-committed element of the
annual Budget process, as already happens with the National Development plan and public
pay agreements. Only then will we believe the Government is genuinely committed to
reforming our public health service. In this Budget, a figure of €1 billion should be
ringfenced for 2021 to invest in staffing as well as capital expenditure, including additional
hospital beds, e-health, and diagnostics.
Mental health
Mental health services continue to suffer from chronic underinvestment. In addition, the
severe adverse impact of Covid-19 on the nation’s physical and mental wellbeing has put
serious additional strain on service providers. Budget 2021 needs to invest €80 million to
support new service development and to address the historic shortfall in funding for
services over recent years.
Biggest learnings from Covid-19:
• Long-term underinvestment in bed capacity and critical care capacity necessitated
significant emergency spending on additional capacity to prepare for future surges.
• New demands on service delivery, infection prevention and control, and social
distancing has put extreme pressure on a system with historic capacity and
infrastructure issues.
• Chronic underfunding of social care, lack of statutory entitlement to homecare, and
light touch regulation of the nursing home sector have failed older people in this
crisis and put them in danger.
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• Historic underinvestment in mental health services has left providers overwhelmed
by surge in demand following Covid-19’s impact on people’s physical and mental
wellbeing.
• The failure to address the serious under-provision of intensive care beds has
threatened the ability of services to respond adequately to patients who are
seriously ill.
• The neglect and underfunding of public health services has significantly hampered
the country’s response to Covid-19.
Our priorities in Budget 2021 are:
€1 billion ringfenced in 2021 for Sláintecare,
to include:
➢ Funding extra posts across GPs, child and
adolescent mental health services,
psychology services, speech therapy, and
occupational therapy in order to build
capacity at primary care level
➢ Additional hospital beds to increase
capacity
➢ Expand e-health
➢ Increase diagnostics in the community
➢ Clear homecare waiting lists
➢ Additional funding for dementia and
Alzheimer’s services
➢ Enhance funding for palliative care
➢ Invest in neurological services
➢ Implement the National Maternity
Strategy
€80 million investment in mental health
services, to include:
➢ A minimum of €10m to implement the
short-term recommendations of Sharing
the Vision in 2021
➢ €30m to ensure existing services can cope
with increased pressure during 2021
➢ Increase staffing levels
➢ Develop out-of-hour crisis services
➢ As above, investment in staff to address
the chronic waiting lists in child health
services, in particular CAMHS
€200m to fund 150 new ICU Beds
➢ Commission 150 new ICU beds in 2021
and a further 150 in 2022 to bring us to
the 600 ICU beds recommended 10 years
ago in the Prospectus report on Adult
Critical Care Services.
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A right to housing
Alongside the Covid-19 pandemic, a second crisis rages on. Housing is simply unaffordable.
Rents are at a record high, homelessness persists, and too many people are being left
behind. A long-term focus is needed to massively increase the supply of affordable housing
and protect tenants in rental accommodation.
The Social Democrats believe housing is a fundamental right, and our aim is to deliver good
quality housing at the lowest possible cost to purchasers and renters, rather than the
highest possible profit to developers and land speculators.
Many of the issues in Ireland’s housing market can be traced back to policy and legislative
failings, but successive budgets, underinvestment and misdirected investment have also had
a significant impact on the current crisis.
Our priorities in Budget 2021 are threefold:
1. Making housing affordable
2. Ending homelessness
3. Introducing fairness for renters
Make housing affordable: Land speculation is a key reason why housing is unaffordable.
This needs to be tackled head-on with a new approach to housing. We would:
➢ End the housing crisis by increasing the
number of social homes built by local
authorities and approved housing bodies
and by introducing a national affordable
cost rental option for renters and an
affordable purchase option for first-time
buyers. In total, we would build 20,000 of
these homes per year.
➢ Over time, this significant investment in
social housing, affordable purchase
housing and cost rental housing will
produce savings and reduce the reliance
on the Housing Assistance Payment.
➢ End tax breaks for institutional investors
such as so-called ‘cuckoo’ funds and
invest instead in our ambitious housing
plans.
➢ Introduce a new land-hoarding tax that
replaces the loophole-ridden vacant site
levy. The new land-hoarding tax will be
set at a rate that encourages the efficient
use of sites.
➢ Ringfence funding for much stronger
enforcement of the derelict sites
legislation.
End homelessness: Homelessness is not inevitable. It is a direct result of the choices made
by the Government. We can end homelessness. We would:
➢ Increase funding and support for
homeless prevention services to stop
more people becoming homeless.
➢ Increase investment in Housing First so
that secure, permanent housing, with
wrap-around supports, is provided to all
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rough sleepers and long-term users of
emergency hostels and shelters.
➢ Create a ‘Housing First for Families’ to
meet the needs of homeless families with
complex needs.
➢ Ensure that those who have exited
homelessness by being provided with
homes during the Covid-19 pandemic will
continue to be housed through the
purchase of former short term lets.
➢ Develop and implement a new Youth
Homelessness Strategy to eliminate
youth homelessness, including a strong
focus on those exiting care, LGBTQ+
young people, Travellers, and other ethnic
minorities.
➢ Restore funding for homeless mental
health services.
➢ Provide funding to ensure that children
who are homeless have access to child
and youth support workers
Introduce fairness for renters: Renters in Ireland deserve to be treated fairly. We will
introduce measures to strengthen renters’ rights and reduce the burden of Covid-19 related
rent arrears. We would:
➢ Introduce a nationwide ban on rent
increases until the Covid-19 pandemic has
passed.
➢ Establish a Rent Register to create
transparency for renters and prevent
breaches of rent caps.
➢ Improve access to Rent Supplement to
help stop people falling into rent arrears.
➢ Introduce a Debt Resolution and
Mediation Scheme for rent arrears,
including state-guaranteed, long term,
zero-interest loans similar to the measure
already introduced in Spain.
➢ Introduce a Deposit Protection Scheme to
safeguard against unfair treatment.
Build sustainable communities: We believe in building diverse communities that are socially
and environmentally sustainable – communities where no one is excluded or left behind. To
achieve this, targeted measures must be taken to enhance living conditions, tackle
disadvantage and end discrimination. We would:
➢ Expand downsizing and sheltered
housing schemes for older people.
➢ Resource additional refuge spaces for
victims of domestic violence.
➢ Ringfence funding for accommodation for
people moving out of congregated
settings.
➢ Ensure funding allocated to Traveller
housing is spent.
➢ End direct provision and provide ‘own
door’ accommodation for those seeking
asylum.
➢ Reintroduce a windfall tax and ringfence
the money collected to build community
infrastructure such as new pocket parks.
➢ Provide a redress scheme to fix Celtic
Tiger era construction and fire safety
defects.
➢ Expand existing retrofitting grant
schemes and introduce a pay-as-you- save
home insulation loan scheme.
➢ Improve the minimum standards so that
every household has a garden or balcony
of their own and that all new houses are
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suitable for a future where more of us will
be working from home.
There are additional measures that need to accompany these financial measures, including
the establishment of a land price and ownership register and publication of information on
land price inflation to enable action against land-hoarding and land speculation;
strengthening of laws on compulsory purchase; banning the sales of properties to vulture
funds; reserving at least 7% of all new social housing for people with disabilities; and the
holding of a referendum on the right to housing.
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A new deal for families
Covid-19 laid bare serious issues in Ireland’s childcare sector which were long ignored.
Ireland lags far behind other countries in terms of childcare, parental leave, supports for
new parents, and basic public services for children. A governmental hands-off approach has
led to spiralling costs in recent years.
The pandemic has forced the state to take a more direct role in childcare that must not be
rolled back. The state must take responsibility for the public provision of childcare, so that
our children can get the best possible start in life.
It is unacceptable that more than 90,000 children grow up in consistent poverty in Ireland.
Budget 2021 needs to set a target to end consistent child poverty in the lifetime of this Dáil
and establish a mechanism to coordinate initiatives that will directly impact on this target.
Our priorities in Budget 2021 are:
Early days
➢ Agree a new national target to eliminate
consistent child poverty in the lifetime of
this Dáil
➢ Adequately fund the implementation of
the National Breastfeeding Action PIan
This would pay for more lactation
consultants in hospitals, lactation training,
hospital and community level support for
women; investment in breastfeeding
training and skills development for
healthcare staff; additional lactation
specialist posts; and a partnership that
works to promote a culture that accepts
and supports breastfeeding.
➢ Establish Milk Banks and a milk donation
campaign.
➢ Establish the Child Anti-Poverty Unit
(€2.5m)
➢ Progress to truly free Primary Education
by restoring capitation rates and funding
free school books so that parents no
longer have to pay voluntary
contributions
➢ Roll out the School Meals Programme
nationally to 500,000 children in primary
schools and 330,000 in early-years
settings
➢ Provide post-natal supports through the
HSE, including workshops as part of
Community Mother Groups.
Early years
➢ Being increasing investment in the Early
Years sector to 0.5% of GDP by 2023 and
to 1% by 2025.
➢ Reduce the number of hours required for
parents to access the Working Family
Income Support
➢ Improve the professional pay and working
conditions of Early Years Educators by
introducing a Living Wage guarantee
(€30m)
➢ Grant all educators a minimum of 5 days
annual sick leave (€6m)
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Future years
➢ Establish an Online Safety Commissioner
to protect children from aggressive
marketing and to provide parents with
better information on how to deal with
online bullying issues, social media
concerns, and overuse of computer
games.
➢ Create a Covid-19 Transition Taskforce
for children to measure the impact of the
pandemic on our youth and to protect
children's wellbeing in the future.
➢ Increase investment in youth work
services (€4.7m)
➢ Support youth participation in climate
action and social justice
Making it work for working families:
Budget 2021 must focus on improving flexible work options for parents, particularly during
Covid-19. For many working families, the current pandemic has placed additional demand
on caring roles and financial pressures. In other European countries paid parental leave has
been a huge support for families navigating the current pandemic. Unfortunately, Ireland
lags far behind most other EU countries in terms of both paid and unpaid parental leave.
Our goal is to see the extension of paid parental leave in conjunction with paid maternity
leave, paternity leave and existing paid parental leave, so that the first 12 months of a
child’s life can be covered by paid leave.
In Budget 2021 we would:
➢ Extend paid parents leave by an extra 2 weeks
4-day working week
Covid-19 has presented real and challenging times for families trying to adjust to family and
work life under a pandemic. In combination with a strong uptake of existing limited flexible
work options, there is clearly a high demand for these options. The Social Democrats have a
strong commitment to extending and vastly improving entitlement to parental leave and
flexible work options in Ireland.
Under the current pandemic, there are increased demands on family life which would make
a 4-day working week helpful for families. It would cater to the need to care for children
when and if they get sick or taking over increased caring roles due to the disruption caused
by the pandemic. The 4-day working week is already available and promoted in many other
countries and with generally positive outcomes. The demand for more flexible working is
especially strong from parents of young children, those caring for an older person or a
family member with a disability, and generally where people are seeking a better work/life
balance.
In Budget 2021 we would:
➢ Establish a Commission on the introduction of a statutory right to flexible work, including a 4-day
working week.
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Funding disability services
The Covid-19 pandemic has presented challenges across all of our society, but people with
disabilities, carers and the organisations that provide social care and other disability services
have felt its affects particularly severely.
Lockdown meant that most day-care services and many other disability services were
severely curtailed. This put enormous pressures on the people affected, particularly family
carers, and left many people isolated. While some services reopened on a limited basis in
August, it is imperative that there is a return to services as close to normal as is possible.
Budget 2021 must ensure that these challenges are met head-on and that people with
disabilities do not fall even further behind. It must also ensure that long-standing
underfunding and unmet need are finally addressed. Finally, it must start to deal with the
huge disadvantages and social exclusion faced by many people with disabilities.
It is imperative that the UN Convention on the Rights of Persons with Disabilities is used to
develop a right-based approach that addresses policy deficits of previous Governments
which failed to put in place systems that guarantee the entitlements of people with
disabilities.
Our priorities in Budget 2021 are:
➢ Provide an extra €100m to allow for the reopening of day services to the greatest extent possible.
➢ Provide an additional €10m in funding for ICT equipment specifically for people with disabilities to address the “digital divide”, so that all persons with disabilities can access training and social care remotely where this is their only option.
➢ Fund new residential supports that are in line with Article 19 of the UNCRPD to support 500 individuals with intellectual disabilities in 2021 – this will give respite to some of the 1,250 people over 70 years of age who are currently primary carers.
➢ Introduce a Carer’s Guarantee, a basket of services and supports for all carers including the right to 20 days respite per year and a carer needs assessment.
➢ Address the underlying deficits in disability services by providing an additional €30m in Budget 2021. This would be a strong first step in implementing all of the recommendations
of the Catherine Day report on the role of voluntary providers and would put disability services on a much more sustainable footing.
➢ Set aside €20m so that a “cost of disability” payment can be commenced in 2021. Ireland has one of the worst records in Europe in terms of social exclusion for people with disabilities, with 2 in 5 people with disabilities experiencing deprivation. Research on this issue is expected to be concluded early next year, and it is important that the Government is in a position to act.
➢ Provide €6m in funding for the Decision Support Service to become operational in 2021.
➢ Reinstate the Mobility Allowance for new applicants at cost of €5m.
➢ Provide €5m to improve the rate of support under the Wage Subsidy Scheme for people with disabilities in order to encourage more employers to take on people with disabilities. Ireland currently
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has the worst employment rate in Europe for people with disabilities.
➢ Improve personal assistance hours (€12m) and increase housing adaptation grants (€20m).
➢ Introduce an assistive technology passport at cost of €1.5m.
➢ Increase the number of psychologists under the NEPs at cost of €1m.
➢ Set aside €15m to start to address pay inequality for Section 39 workers.
➢ Commit to reserve 7% of all social housing stock for people with disabilities.
See also the Health, Housing and Community sections.
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A green recovery
A just transition is central to the Social Democrats’ approach to the climate and biodiversity
emergency, which the impact of Covid-19 has only made more important to face up to.
Reviving our economy as we come out of the pandemic provides a vital opportunity to
prioritise investment in a just green recovery. It carries significant opportunities for new
businesses and for reskilling and retraining into good quality jobs. We would prioritise a
range of climate and biodiversity initiatives that are job-rich and make a significant
contribution to tackling the emergency we face.
It has become clearer through Covid-19 that those people on lower incomes are
disproportionately affected by economic shocks like Covid-19. A we fight the climate and
biodiversity crisis, we cannot allow the cost to fall disproportionately on their shoulders.
Measures implemented to fight climate change and generate a green recovery must be
disability-proofed and poverty-proofed by a Just Transition Task Force.
Our priorities in Budget 2021 are:
➢ Establish a national frontloaded ‘pay-as-you-save’ retrofitting programme which would allow people to insulate their homes and pay the cost as they save on their energy bills over time.
➢ We would invest in training and re-training options to build a skilled workforce, including energy advisors to guide home and business retro-fitting.
➢ Begin implementation of a Circular Economy Package concentrating on areas such as sustainable agriculture, bio-economy, and recognition of the interconnectivity between the economy, environment and society - €10m
➢ Increase funding for the Exceptional Needs Scheme so that low income households with significant Covid-19 related energy debt are not pushed into energy poverty or additional hardship
➢ Establish a debt relief mechanism for households in significant energy debt because of Covid-19.
➢ Develop renewable energy sources to support the move to a low-carbon power system by 2050 ( €75m
➢ Invest in a deposit and return scheme for sealed beverage containers (€5m) and
introduce a 15c levy on single use coffee cups generates €96m p/a (in normal circumstances)
➢ Double the funding for the National Parks and Wildlife Service and invest in the National Biodiversity Centre to scale up policies to support biodiversity and mainstream biodiversity into economic decision-making.
➢ Fund National Rewilding programmes:
➢ Establish a new Wildlife Crime Unit in An Garda Siochana.
➢ Begin a river barrier remediation programme
➢ Grant funding to Local Authorities to employ a Biodiversity Officer, to establish council-level Air-Monitoring programmes and to enhance allotment spaces in each council area
➢ Provide the certainty of multi-annual budgets for environmental organisations including the Biodiversity Data Centre
➢ Extend the remit of the bike to work scheme to include those who are students, jobseekers, on disability allowance, or are doing unpaid work at home to include a wider range of bikes and similar modes of transport.
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➢ Increase connectivity between and within different modes of transport by funding more Park and Ride facilities and Bike and Ride facilities adjacent to large towns and cities
➢ Increase funding to Local Link to provide further local and circular routes servicing towns and villages.
➢ Develop a Green Procurement programme for Businesses – A Green Audit for Businesses and supports to encourage transition to greener practices.
➢ Establish a fund for co-working spaces and fund the Councils to manage them (similar to libraries but with hot desks, meeting rooms and creche spaces)
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Equal opportunities in education
Education is the single greatest driver of opportunity, quality of life, social equality and
economic growth. Ireland should be a republic in which every child has the opportunity to
achieve their potential – that can only happen with a well-funded and modern education
system. Resources should be carefully targeted to where they are most needed, and every
effort must be taken to ensure access across all socio-economic backgrounds.
However, in the last months we have seen some of the greatest inequalities in our society
reflected in our education system. The pandemic revealed a system of education that is
antiquated both in infrastructure and design. Oversized classrooms that are detrimental not
only to the learning experience of the child, but now to the health of the community.
Inequalities that range from digital to the very basic provisions of school books and a school
environment that is blighted by pay inequalities and poor employment conditions.
The learnings from Covid-19, which will now require significant investment to resolve
include:
• Importance of education to children’s mental health and personal wellbeing
• Need to reform Leaving Certificate system and university admissions
• All children should have equal access to education technology and tools
• Need to provide teachers with training in e-learning technologies
• Reduction class sizes so that teachers can have more time with each child and ensure
greater flexibility in the event of remote teaching
• Resourcing of schools to deal with remote teaching and infection control and
outbreak
The pandemic has also exposed how fragile our higher and further education system is,
including its over-reliance on overseas students to make up huge shortfalls in government
funding.
It is now clear that our education system needs a very significant overhaul from early years
right up to third level.
Our priorities in Budget 2021 are:
Primary and Secondary Education:
➢ Strive as a matter of urgency to reduce
class sizes in primary schools to the EU
average of 20.
➢ Invest in digital resources to ensure every
student in Deis schools has access to a
laptop.
➢ Make primary education entirely free by
funding schoolbooks, school transport and
eradicate voluntary contributions.
➢ Restore the basic capitation fee to pre-
2010 levels and retain the Covid-19
capitation payment
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➢ Professionalise Special Needs Assistants
to ensure their vital position in the
classroom is respected alongside all other
school staff.
➢ Ensure that no school will lose a teacher
during the pandemic due to a loss of
student numbers. This results in further
increases to classroom sizes and is
detrimental to the health of students and
teachers alike.
➢ Ensure all schools have a full career
guidance teacher to meet the needs of
students in senior cycle who have faced
major disruptions in their learning
experience.
➢ Provide more resources to NEPS and
CAMHS to address the high levels of
trauma and poor mental health that is
being experienced by students
throughout Ireland during the pandemic.
➢ Lift the moratorium on the recruitment of
Special Duties posts to allow principals
who have worked continuously
throughout the pandemic to focus once
more on school leadership.
➢ Support students with SEN by listening to
experts and providing the resources to
match their recommendations.
➢ Ensure that all schools have as a
minimum, access to hot water.
Further and Higher Education:
➢ Start to reduce third level fees, beginning with a €500 reduction in college fees
➢ Extend the laptop scheme to all students through a basic means test
➢ Increase the student maintenance grant (SUSI) rates by 10% (€17m)
➢ Increase the income threshold for student maintenance grant by 10% (€20m)
➢ Reform the back to education allowance, include real life costs such as childcare and mortgage payments in means testing
➢ Increase funding for apprenticeship programme with the addition of 1,000 additional places under NAA – widen the scope of apprenticeship
➢ Increased allocation to the Fund for Students with a Disability
➢ Transition Skills Fund. Young people not engaged in education or training and people employed in sectors whose jobs are at high risk of automation should be key target groups (€10m)
➢ A publicly financed student accommodation building strategy and a charter for student tenant rights
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Protecting Workers
The vulnerability of workers was sharply highlighted during the pandemic. This was even
more acutely so in particular sectors, where basic rights like sick pay are not available. We
also learned that some of the least well-paid jobs are the most essential.
Every worker deserves a decent wage, a sense of security and fair representation.
Our priorities in Budget 2021 are:
➢ Prioritise the creation of good quality jobs
by legislating for a Living Wage
➢ Provide the right to collective bargaining
and ensure all employees have access to
enhanced protections in relation to
minimum hours and conditions
➢ Improve the pay and working conditions
of early years educators by introducing a
Living Wage guarantee.
➢ Introduce a national sick pay scheme.
➢ Reinstate the tax relief for trade union
subscriptions.
➢ Close loopholes in the tax codes which
promote bogus self-employment
➢ Prevent the use of temporary and fixed-
term contracts to evade employment
laws.
➢ Provide targeted supports and measures
to tackle youth unemployment
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Agriculture and our Rural Communities
Agriculture is critical to our economy and is the lifeblood of rural communities across the country. With the looming threat of a no-deal Brexit and the consequent threats to food exports and food security, this sector is under significant pressure, adding to the pressures already faced by the impacts of the pandemic. Without sustainable and robust support from the state, the agricultural sector will suffer greatly, taking with it many rural communities and the heart of Irish society. Our priorities in Budget 2021 are:
Agriculture and Fishing
➢ Increasing the funding allocation is
required for all environmental and locally
led schemes, including GLAS, the Burren,
Hen Harrier and Organic Schemes,
including the Organic Farm Scheme.
➢ Support increased participation by
farmers in KT programmes across all
sectors, including forestry. This would
allow an extension of the KT programme
for 2021 and allow additional participants
into the scheme.
➢ Provide an additional payment on the first
3ha of organic horticulture. There is a
clear growing market and demand for
organic fruit and vegetables that will
return a margin.
➢ Additional funding to assist farmers with
the establishment and ongoing running
costs of POs. (c.€2m increase)
➢ Maintain the Government’s Brexit
contingency fund announced of €110m
for Agriculture.
➢ Funding of €84m is required to expand
and develop the Smart Farming
Programme, as recommended in the Joint
Oireachtas Climate Action Committee
Report Climate Change
➢ Develop and expand the Scheme of
Investment Aid for the Development of
the Commercial Horticulture
➢ Fund a programme offering free advice
and guidance to farmers in Carbon
Sequestration
➢ Extend the Student Assistance Fund to all
Agricultural College Students
➢ Increase funding to farmers in Areas of
Natural Constraint and Special Areas of
Conservation
➢ Implement an emergency Covid19
support package for the fishing industry
Bolstering rural economies
➢ Provide small grants for rural
communities to assist them getting
broadband access through small service
providers (€1m)
➢ Extend the budget for the Walks Scheme
to build sustainable tourism. (€3.5m)
➢ Payments on the Rural Social Scheme,
Community Employment (CE) and Tús
schemes/programmes should be
increased in line with minimum wage in
the short term with a goal of transitioning
to a living wage.
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➢ Rollout and fund a Farm Safety
Programme with a goal of reaching zero
agricultural deaths
➢ Increase the number of places on the
Rural Social Scheme by 500 and reverse
the 2016 changes to the length of time a
person can remain on the scheme
➢ Continue to fund ‘Getting Citizens Online’
and ‘IT Skills for Farmers’ basic computer
courses and develop a follow on course
for those who completed this. Extend the
course also to those in low skilled
employment.
➢ Additional funding for Fáilte Ireland to
promote local and regional tourism
initiatives
➢ Support REDZ and LEO’s to develop
remote working hubs and Smart Villages
and our Digital Agenda for Europe targets
➢ Restore the distance coding and
increasing Rural Practice Allowances to
pre-2009 levels.
➢ Reintroduce the Nursing Home Support
Scheme (Amendment) Bill 2019 and
provide for the inclusion of farm land
leased to third parties, in line with other
Government policy on inheritance under
Agricultural Relief20.
➢ Management of the deposit fund to be
carried out by regulated co-ops and
Agrimerchants that trade with the farmer.
Rural transport
➢ Increase funding to Local Link to provide
further local and circular routes servicing
towns and villages.
➢ Invest in rural transport programme to
increase availability and ensure the fleet is
in line with climate commitments - €50m
➢ Investment to return and upgrade bus-
stops along rural routes including
investment in modernisation and bus
tracking for user interface (accessibility).
➢ Funding of transport for those receiving
addiction counselling or other services.
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Additional Priorities
Enhancing Social Protections:
The very essence of a Republic is found in how it protects its citizens during a crisis. When
the pandemic hit and so many people found their livelihoods lost over night, the State
finally seemed to accept that previous social welfare rates were entirely unsuited to live a
life of dignity and comfort. We cannot unsee that reality and must now reform our system
of social protection to ensure it provides a true safety net for those who need to avail of it.
Our priorities in Budget 2021 are:
➢ Link social welfare rates to the Minimum
Essential Standards of Living.
➢ Ensure those sectors which cannot return
to work (such as our artists and tourism
sector) as a result of Covid-19 have
adequate income supports
➢ Prioritise the creation of good quality jobs
by legislating for a Living Wage
➢ Provide the right to collective bargaining
and ensure all employees have access to
enhanced protections in relation to
minimum hours and conditions.
➢ We would improve further education,
training and apprenticeship options and
offer better basic literacy and jobhunting
skills programmes.
Valuing the Arts
When we emerge from this crisis, we will need our artists more than we ever have. We shall
need them so we can laugh again, to connect with our friends and to grieve for the people
and the moments we have lost. Until that time however, we must support our artists and all
of those in the wider industry who make their art possible.
Our priorities in Budget 2021 are:
➢ Provide adequate income supports for
artists and those professionals in the
wider entertainment industry.
➢ Develop a roadmap for progressive
increases in total arts funding to bring it
in line with average EU spending over 5
years, with a focus on current expenditure
to practicing artists through the Arts
Council and Culture Ireland.
➢ Establishment of special commercial rates
for creative/arts spaces as well as “rates
holidays” for new projects.
➢ Fluctuating nature of income for artists to
be taken in consideration when assessing
welfare supports.
Reviving Communities
Communities provided the backbone of support during Covid-19. Communities pulled
together to keep services running and to protect each other and were and are essential in
providing support to vulnerable people. The pandemic showed how extensively we rely on
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our community and voluntary organisations and how important these organisations are to
thriving communities.
Across areas including health and well-being, education, arts, sports, disability, volunteering,
emergency supports, environmental, community development and community enterprises,
the community and voluntary sector needs support to survive the current funding and
fundraising crisis. If we do not invest in the sector now, there may not be much to revive
after the pandemic.
The sector now need certainty: in funding measures to address the significant shortfalls, and
in commitments to multi-annual funding so that organisations can plan securely.
Our priorities in Budget 2021 are:
➢ Provide additional funding to community
and voluntary sector organisations,
recognising the current fundraising crisis,
especially to those organisations
providing much needed services to people
vulnerable due to the pandemic
➢ Introduce sustainable funding models
that factor in the full cost of service
delivery
➢ Implement 3-year multi-annual funding
as the default approach for community
and voluntary organisations
➢ Incrementally increase the VAT
compensation scheme for charities
➢ Implement a process to determine
essential services under HSE Section 39
and Tusla Section 56, followed by a
commitment to fund these organisations
adequately and ensure sustainable pay
and working conditions for staff.
Specific sectors have been especially impacted by the pandemic and need additional
measures:
➢ Domestic Violence: Increase the number of domestic refuge spaces to meet the commitments of Ireland under the Istanbul Convention (€35m)
➢ Youth work: Youth work has supported young people throughout the pandemic, and is a crucial community-based service
provider working with young people. This sector continues to operate at a deficit, having been disproportionately cut in post 2008 budgets. In 2019, youth work received just 4% of the overall DCYA funding allocations. We would increase the allocations from the DCYA.
Supporting Local Government
Local Authorities have crucial roles to play in coping with the pandemic - delivering a wide
range of services and supporting local communities and local businesses. New challenges
have arisen with new demands for funding, precisely at the time that vital income has been
lost. The reliance of Local Authorities on income streams such as car parking demonstrates
the failures in sustainable funding. A new plan is needed to transition away from such
income streams to more sustainable ones.
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Priorities for Budget 2021 are:
➢ Increased funding from Government
to replace the lost income of Local
Authorities to ensure that local and
community services are maintained,
including ensuring that the entirety of
the commercial rates waiver is
returned
➢ Reimbursement of essential Covid19
related costs to Local Authorities
➢ Direct investment in the planning
department for every local authority
to:
• Ensure minimum standards on
housing and planning,
• Create a covid19 needs analysis for
each Local Authority
• Establish a taskforce to oversee
changes in land use to adapt for
changes in work and living habits
as a result of Covid-19, and
planning for more resilient
sustainable cities, towns and
villages.
• Tackle poor planning and build
sustainable communities
Overseas Development Aid
➢ We would spend 0.7% of GNI in
Overseas Development Aid.
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Revenue Raising
The Social Democrats are proposing the following revenue raising measures for Budget
2021:
• End favourable Tax Treatment of REITS/Cuckoo Funds, €20m
Eliminate tax benefits on cuckoo funds which we have estimated having a €20m yield in
2021
• Alcohol and Cigarettes, €229m
We would raise €229m from a series of taxation increases on alcohol and cigarettes.
An extra 10c excise duty on alcohol would yield €148m. €24m would be raised through a
ban of below-cost selling of alcohol as there is a VAT loss to the state with current below-
cost selling. We would raise excise on the standard packet of 20 cigarettes by 50c, yielding
approximately €57m.
• Pension tax relief, €120m
Reducing the maximum allowable pension fund (the Standard Fund Threshold, SFT) to
€1.7m would, in most cases, fund an annual pension in excess of €60,000. We would set
€1.7m as the new threshold.
• Scrap the Special Assignee Relief Programme (SARP), €18m
The SARP tax relief is aimed at reducing the cost to employers of so-called special “high-
end” staff by providing special tax benefits. The employee must be on a salary of €75,000 or
more to qualify. It was introduced in 2012 and was due to expire at the end of 2017 but was
later extended. The Government should not be subsidising very significant salaries when
there are so many other priorities for taxpayers’ money. It is simply outrageous that
ordinary tax-payers are funding a scheme where people need a minimum salary of €75,000
to qualify. We would scrap this relief.
• Levy on Single Use Plastics & Unrecyclable Packaging, €25m
The extent of over-packaging in our supermarkets is fuelling a throw-away culture, and
contributing to waste and emissions. The public have lost patience with producers of such
material. The response of the European Union, while welcome, is far too cautious and slow.
It is also frustrating that EU law restricts national Governments’ actions in terms of bans. In
Budget 2021, the Social Democrats are calling for a new levy on single use plastics and
packaging that cannot be readily recycled in Ireland. This should start low in 2021 but
gradually increase in future years so that producers have every incentive to switch to
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sustainable packaging. It should also encourage the development of far more refill options
for the public.
• Environmental Tax on Aggregates, €20m
We would set down a new environmental levy on each tonne of sand, gravel, crushed stone
and other aggregates extracted from the ground or lifted from the surface and used in
construction. The rate would be comparable to the rate applied in the UK. Such a levy would
encourage the recycling of aggregates and the much more sustainable use of our natural
resources. It would also help reduce carbon emissions. When introduced in the UK the
measure had a positive impact on the rate of recycling. This measure is primarily aimed at
environmental protection. Some estimates put this yield as €80m a year but we have
estimated a €20m yield in 2021.
• Betting Tax, €100m
We would raise betting tax on both in-shop and online betting by two percentage points.
According to Revenue, this would yield €100m.
• Banking Levy, €250m
The banking system was rescued by the taxpayer over the past decade. Now that they have
returned to profitability, and continue to avail of significant tax write-downs on previous
losses, the Social Democrats believe it is not unreasonable for tax-payers to expect some
dividends. We would increase the Banking Levy to raise an additional €250m.
• Other, €1,468m
• Increase the minimum effective tax rate of persons earning more than €400k per
annum by one percentage point (€40m approx)
• Reform Corporation Tax to set a minimum effective rate at 6%, as recommended by
Social Justice Ireland, yielding €1bn per year.
• Remove refundable element for unused R&D tax credits as recommended by Social
Justice Ireland (€150m) Cost at last count was €400m.
• Increase Employers’ PRSI on the balance of incomes over €100,000 to give a yield of
€175m in 2021
• Reduce funding to the Irish Greyhound racing industry by €8m.
• Scrapping the Help to Buy scheme would yield an estimated €75m.
• As per our Housing, section we would introduce a proper land-hoarding tax, yielding
€20m in 2021
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Revenue Increases Revenue Raised €m
Target extra revenue from REITS/Cuckoo Funds 20
Alcohol and cigarette excise duty increase & banning below cost selling 229
Reduce maximum allowable pension that qualifies for tax relief 120
Increase in sugar-sweetened drinks and introduce snack tax 20
Increase shop and online betting tax by 2% points 100
Abolish the Special Assignee Relief Programme 25
Environmental Levy: packaging, single use plastics, aggregates 45
Increase Bank Levy 250
Increase Minimum Effective Tax Rate on high end individuals 40
Reduce research and development tax credits 150
Reform Corporation Tax to sent minimum effective rate of 6% 1,000
Increase Employers PRSI on balance of salaries over €100k 175
Reduce funding to Irish Greyhound industry 8
Scrap the Help to Buy scheme and invest in house building 75
Implement an effective land hoarding tax 20
Increase Stamp Duty on Shares 37
Total €2,314
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