Wages: The real competitiveness problem.

T McGibney said:


And " Nearly half of Irish people expect the value of their house to rise in 2011" according to a report carried out by Joe Bloggs Auctioneers.
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Jeez guys , don't shoot the good news messenger.

I would imagine that Mercers report carries more import than an imaginary report from "Joe Bloggs " - at least in the real world !
 
Cancel stamp duty
Cancel prsi
Cancel road tax
Cancel 2nd home tax
Cancel all road tolls
Cancel rules on Chilecare ratios
Cancel Sunday work rules
Cancel Senate
Cancel 40 dail seats
Cancel rates

Introduce 5% increase on personal tax rates
Reduce the corporate tax rate by 1%
Cut all public wages above 80k by 20%
Cut all public wages under 80k by 10%
Cut all wellfare rates by 10%
Remove minimum wage and jlc wage rules and allow the market dictate.
Standardise VAT at one rate 17% collect it monthly from everyone.

Cancel all tax breaks except for ones that encourage direct employment.

Raid the pension reserve fund for 2 billion, leverage it to 10 billion to set up new business bank to get cash back into the sme sector.

Give employers tax credit of 3k pa for every new full time job created and sustained. (thats a fraction of what the welfare cost is of having the person on the dole.)

Mandatory rent reduction on all commercial premises of 20% burden of proof lies with owner, big fine if not prooved.

Social Conscription, 6 month mandatory social contribution to an eligable organisation ie concern, st vdp, barnardos, meals on wheels, etc etc Tax credits withheld for non compliance.

Work for dole, everyone on the dole must work for the state for 8 hours per week minimum. Ideally such work should not compete with the private sector. 5000 public sector jobs should be transfered into the management of this scheme.

Rant over
 
Some fantastic ideas there Number7.

Only ones I disagree with is the governemnt setting up a bank and mandatory rent reduction, as the first is not something politicians are competent to do, and the second is direct interference in contract laws.
The other thing I think you don't go far enough with is working for the dole, this should be at least 20 hours per week.
 

I understand your reluctance on the government run bank....but it is the only way I can think of that would keep high employment sectors working while keeping the borrowings off the national balance sheet. Perhaps the government could just set it up and hand it over to a board of directors that were acceptable to the irish public.

I would personally like to see people work for a full week for their dole but the practicality of that could be very difficult. 8 hours should be possible for everyone, even the ones who have swapped work for being the primary caregiver at home. Setting the bar too high could cause the whole concept to fail. Once the concept has been accepted it could be adjusted each year in the same way we adjust the tax bands. I would be happy to see it started at 4 hours.

One I forgot, I would love to see a move towards a national income for every man woman and child instead of tax credits and welfare. This move would allow all income to be taxed from the very first euro.

Another one I forgot, Cancel the anticompetitive payments to RTE and abolish the tv licence.

By abolishing the tv licence and road tax you create the space for a property tax of €500.00 pa, €250.00 to local authority and €250 to central taxes.

Water rates, over my dead body.
 

That's a very good point. Maybe another solution would be for unemployed to start off working 8 hours per week, and every month the amount of hours are increased, so that ultimately the person is working full time for the dole, giving ever more incentives to take a job.
 
I like it.

"Unemployment the game show for all the family"

"and now for this week work off"

Joking, im really bored today.
 
Deiseblue said:
A headlne in the business section of the Examiner today reads- " Nearly half of Irish-based employers to offer workers a pay hike in 2011" according to a report carried outby Mercer HR Consultants.

Bit of positivity about thankfully.
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Are you sure it wasn't that they misheard "...will tell their workers to take a hike in 2011"?
 

How about offering them the 'incentive' of a salary? Is there a chance that might work?
 
number7 said:
I would personally like to see people work for a full week for their dole but the practicality of that could be very difficult. 8 hours should be possible for everyone, even the ones who have swapped work for being the primary caregiver at home.
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If someone has swapped employment for the role as primary care giver at home then they are not available for work and so should get no unemployment benefits.
 
The governments strategy is to cut spending and to stop hiring with the public service jobs embargo.
What about the unemployed and those entering the jobs market after finishing their education?
We have the crazy situation that because of the croke park agreement the salaries of public sector workers cannot be reduced.Yet Mary Harney is going to make huge cuts in health but apparently can`t touch salaries,which make up the bulk of health spending.
We need serious cuts in wages and salaries, and also job sharing so that we can have a fully staffed public service.
 
Purple said:
If someone has swapped employment for the role as primary care giver at home then they are not available for work and so should get no unemployment benefits.
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Thems the facts all right Purple, but thats not whats happening out in new ireland.

Parents who have work employ childcare, parents who dont have work in general cant afford to employ childcare so don't. Never heard of anyone losing their dole because they were minding their kids, have you?
 
I agree with Water Rates. Water is a precious resource that we are very luck to have and if we pay for it we will conserve it. It is also a service so you can see what you are getting.
Property Tax over my dead body!
What service would I get for that? I already provide accomodation for myself and my family by buying my own house and therefore not expecting the state (ie the rest of us) to provide me with accomodation. All that will happen here is we pay more tax to local government for them to remain inefficient. There are too many councillors pay too much, too many people employed in County Councils, how many planning staff have been let go? They cant have anything to do as no one is building anything.
 
wage decreases bad

In relation to the original statement, you cant decrease the minimum wage until the cost living in this country decreases. the cost of some services are still increasing, such as the TV licence, oil, and public travel. Also, especially when its looking like all benifits are going to get hammered in the next budget aswell as the introduction of water charges the lower earners of the spectrum will need every cent they get.
 
I think we need to benchmark public/civil service salaries with those in the north of Ireland.

It was mentioned that this would save approx: 27 billion euro on RTE this morning.
 
Niallers said:
I think we need to benchmark public/civil service salaries with those in the north of Ireland.

It was mentioned that this would save approx: 27 billion euro on RTE this morning.
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Great idea - and we'll benchmark mortgage payments, rent payments, grocery bills and professional services fees against NI at the same time - right?
 
Complainer said:
Great idea - and we'll benchmark mortgage payments, rent payments, grocery bills and professional services fees against NI at the same time - right?
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Mortgage payments (interest rate) is already lower here.
The state is the biggest employer by far in this country. If wages in the PS are cut dramatically, rents. grocery bills & fees will have to fall as there is less money to pay for them.
 
Firefly said:
Mortgage payments (interest rate) is already lower here.
The state is the biggest employer by far in this country. If wages in the PS are cut dramatically, rents. grocery bills & fees will have to fall as there is less money to pay for them.
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There's a big difference between Mortgage payments and interest rates..

There was a 15% cut in PS wages including the pension levy. Did grocery bills and fees fall much last year?
 
Complainer said:
How about offering them the 'incentive' of a salary? Is there a chance that might work?
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Yes, I think that can work. Germany has a similar system, where after 12 months of unemployment you have to work to receive all your entitlements. If you cannot find a "1 € job", as they are called, then you are placed in one. This does not guarantee employment, but it dow provide some work experience to unskilled people, and incentivises skilled people to take a lower paying job than they are used to.

Minimum wage along with other public sector wage cuts can be done if the state also reduces taxation. It's not really a chicken and egg debate, as the amount of money available in the public hands dictates the price levels, not the other way around. If the minimum wage is not reduced then in a very short time you will find prices and employment dropping.
 
Some people are posting like there is a choice not to cut public sector pay. Well what happens in another few months when no one is lending to Ireland, and all the (borrowed) money has run out? What do we pay the public sector with then?

I've mentioned on another thread that a possible solution would be to reverse every decision made by bertie ahern and his government. Reset the country back to 1996.
 
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