Budget 2011: there are plenty of alternatives

Claiming our Future, 'a progressive movement for an equal, sustainable and thriving Ireland' launched a discussion of pre-budget submissions by TASC and Unite amongst others in Dublin on Wednesday 23rd November.  Chaired by TV3 host and journalist Vincent Browne, the discussion was organised by the Dublin South East branch.  The main speakers were Niall Crowley who resigned on principle last year as chief executive of the Equality Authority and  Sinead Pentony, Head of Policy at TASC.

Niall Crowley, Sinead Pentony and Vincent Browne

There was no doubt that the government's imminent budget is going to do a lot of harm while failing to achieve any of its aims.  It will make Ireland an even more unequal society. Evidence shows that equal societies are happier, have fewer social problems and are economically more productive.  And, as the panel reminded us, they are nicer to live in.  Yet the government is poised to suck another 3 billion plus from the already lifeless public and social welfare sector and give the proceeds directly to 'investors' and foreign banks, while leaving the rich largely untouched.  An act of economic suicide, as Sinead Pentony pointed out, because taking from the poor takes money directly from circulation in the economy.  In Ireland "90% of businesses are local and rely on the spending of public sector workers and social welfare recipients to keep them solvent".  With a further 3 billion taken out of circulation even more of them will crash.

What was that about there being no alternative? 
As Niall Crowley said, projections for growth are now below 1.% for next year, and most believe that to be over-optimistic.  Put simply, as TASC do, "the general government deficit will not be brought to a sustainable level by 2015".  Government and media sloganising repeats endlessly that 'there is no alternative'.  But there is - in fact there are many.  Michael Taft of TASC writes on politco.ie that "four comprehensive pre-budget submissions have found, between them, ways of saving approximately €6 billion without eviscerating social protections and hammering the lower paid".  The alternatives might take 'a little effort to understand' (as some audience members complained), but they are sound and sensible.  Analysing figures obtained from the revenue commission,Vincent Browne demonstrated how, for example:  

193,495 individuals and couples are paid on average €143,390 and they pay just 33% of this on average in income tax and the Universal Social Charge (USC). If this group were to pay 10 percentage points more of their income in tax, (ie 43%, including the USC), the additional revenue to the State would be €2.7 billion.

Both Niall Crowley and Sinead Pentony set out alternative budget submissions which were so logical and fair that it made it hard to conclude that the government's budget is anything other than ideologically driven.  So why are they pursuing it?  Firstly, Ireland has sold its sovereignty. The government is now effectively an administration acting out the dictates of foreign banks.  The bailiffs are in and the consequences to the 'people' are unimportant.  But there is a peculiar ideology at home that supports this too.  Vincent Browne comments in the Irish Times that taxing the rich simply

"won’t happen, nor will any such strategy aimed at requiring those best able to pay to do so, because our politics is conditioned to comfort the comfortable and discomfort the discomforted. ...There is also the impulse of deference. Deference to the big beasts of Europe and the financial world, eagerness for the praise of our betters, for the company and camaraderie even of tax avoiders and tax exiles".

So where do we go from here?
While the audience were supportive of the panels conclusions, a discussion of 'the way forward' showed signs of that same deference.  There was much talk of 'putting our submissions' to the government, and 'writing to TD's with our ideas'.  But we had just learned that those same TD's and ministers were not lacking evidence or ideas, they just lacked any interest in them.  As Vincent Browne argued, the thing to do is to persuade the people.  When the majority of people accept the economic alternatives and the argument for equality, then change will follow.  But even within the audience some said they were tired of 'left-wing slogans' and put off by 'complicated economic arguments'.  And one declared himself 'too lazy' to leave the Labour Party. Until the majority see the value of equality the future looks like it will remain unclaimed.

More positively one of the organisers said 'I see signs of positive change'.  Where?  Browne asked.  'Well this meeting for example'. Let's hope so.