The Irish Small and Medium Enterprises Association (ISME) has called for tax cuts to be aimed at the lower paid.

In its autumn report on the economy and the forthcoming Budget, it said people on incomes of £10,000 or less, should be removed from the tax net and such cuts should be aimed at attracting back to the workplace those described as unemployed or those on social welfare. ISME argued that community employment schemes which tie up 60,000 people and cost the Exchequer over £300 million per annum should be tapered down and the resources freed should be used to provide gainful employment. The association has welcomed the Taoiseach's suggestion that future, public-sector wage increases will be based on productivity agreements. "That, however, is a pledge which has been made before and not delivered on. If it is to be undertaken in a business-like manner it will require a restructuring of the centralised pay-bargaining process with respect to the public sector." it said

ISME argued the change would allow meaningful and measurable productivity to be delivered. "In other words, within the context of social partnership, negotiations of public sector pay should be at departmental level."