Period of tax cuts now at an end says Rabbitte

The days of cutting the rate of income tax at the expense of spending on public services are at an end according Labour leader…

The days of cutting the rate of income tax at the expense of spending on public services are at an end according Labour leader, Mr Pat Rabbitte.

Speaking at the launch of Labour's economic pamphlet, The Fair Society, Mr Rabbitte said with growth in the economy now predicted to be in the region of 4-5 per cent per annum for the next couple of years, there was a choice facing society.

To put money "into people's back pockets" via tax cuts, or, to improve infrastructure and services.

He said the gap between rich and poor had widened under "McCreevy's stewardship" and people have become "uneasy" about lot of aspects of public services.

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Mr Rabbitte claimed the Minister for Justice, Mr McDowell, was wrong in suggesting the economic success Ireland has enjoyed was down to tax cuts. Mr Rabbitte said: "Tax cuts followed as a result of the boom, not the other way around".

The Labour leader claimed it was about time access to education and health services was expanded.

He said public services in Ireland needed to have a better consumer focus which should be reflected in policy.  "A fair society should be based on economic success, social justice, sustainable development and personal freedom," he added.

"But it must be founded on a successful economy."

"The fair economy must give everyone the opportunity to fulfil their human potential," he said.

"This means investing in people, to give them the skills and education that they need, in a market-based economy.

"It also means providing high quality, efficient and cost-effective public
services," added Mr Rabbitte.

The Fair Economy is a 20-page document promoting an alternative economy based
on 10 principles. They include investing in people and public services.