Under the new programme for ‘national government’ Fine Gael and Labour will make a new economic group to change the terms of the loan given to Irish banks by the European Union.
Labour’s Brendan Howlin said “We have to repair broken bridges across our European partners, to build up an understanding of our position.”
He added “It’s in everybody’s interests, not only the national interest of Ireland, but in Europe’s interest and in the interest of maintaining the euro, that we have a path that is sustainable out of the economic hole that we find ourselves in now.”
It also calls for the Department of Finance to be split in two.
The new Minister for Finance would look after budgets and taxes. A minister for estimates and public service reform would supervise spending.
Both these Ministers and two others, one from each party, would form an economic council.
The council would not be answerable to the Taoiseach and would have supreme power over the country’s economic direction.
Fine Gael’s Phil Hogan said there would be no income tax rises under the partnership.
The parties will make no changes to this year’s Budget and they will make further €3 billion in cuts and savings next year.
They would then review cost-cutting measures in 2012.
Some 18,000 to 21,000 voluntary redundancies will be sought in the public sector* in the next two years with a further 5,000 to follow after that.
There would be no changes to children’s allowance or social welfare payments. A new and fairer funding scheme for third level education will be introduced.
They will reverse cuts in the minimum wage and abolish the travel tax on air fares.
There would be a minimum 30 per cent income tax rate for very high earners.
They plan to introduce a new universal health insurance system, making it compulsory for everyone to be insured.
The coalition will hold a referendum to abolish the Seanad.
They will also reduce the number of TDs, cut their salaries, expenses and pensions.
The plan calls for the Dáil to sit four days a week – instead of the present three – and a reduction in holidays.
Glossary
The Dáil=the House of Representatives
The Seanad=the Senate
Public sector=the part of the economy who provide basic govermment services e.g teachers and the Gardai
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