Ms Michelle Murphy:

I thank the Deputies and Senators of the committee for inviting Social Justice Ireland here to present our proposals. Social Justice Ireland is an independent think tank and justice advocacy organisation that advances the lives of the people in communities through providing independent social analysis and effective policy development to create a sustainable future for every member of society and for society as a whole.

To date, the burden has fallen hardest on those who could least afford to carry it, namely, those who are very far removed from the banking and speculative gambles that were at the root of Ireland's economic crash. The focus of Social Justice Ireland's budget proposals, therefore, is on shifting the balance towards an emphasis on additional taxation measures via the creation of a fair taxation system and reducing the focus on cuts to public expenditure.

Our policy briefing, Budget Choices, sets out three scenarios in terms of reducing the budget deficit, but I will focus on our core proposal of a reduction of borrowing by €1 billion in budget 2015 to meet the deficit target. This is due to a number of factors including redefinitions of GDP, higher growth, the growth in employment, and subsequent increases in taxation revenues and expenditure saving, among other areas. Page 4 of Budget Choices contains the full details of our adjustment.

The Government has choices as it decides what to include, and what to exclude, in budget 2015. It is important that this is publicly acknowledged and considered prior to and during the decision-making process for budget 2015 as these decisions will have a very significant impact on people throughout the State. Government choices should ensure that budget 2015 is fiscally sound, that it improves tax equity, protects the vulnerable, improves governance, and makes decisions that are sustainable.

There is an urgent need to reverse the regressive nature of the budgets introduced by the current Government since 2011. This requires that special care be taken to protect the vulnerable. It requires that those who currently have the most and who benefit the most from our economic system contribute the most.

Our key proposals for budget 2015 are that the Government should dramatically increase funding for social housing; make a significant investment in the broadband infrastructure in rural areas; increase funding for adult literacy; increase funding for disability services; introduce a universal State pension; make tax credits refundable to address Ireland's working poor problem; increase the PAYE tax credit by €5 per week; and increase core social welfare payments by €5 per week.

To finance its debt reduction, the Government should introduce a minimum effective corporate tax rate of 6%; make tax reliefs available only at the standard rate; and introduce a financial transactions tax. A budget oriented along those lines would be fiscally sound. It would prevent any further erosion of the social infrastructure, provide much needed investment, and begin the process of making the taxation system more equitable. It would be fair, good for the economy, good for the vulnerable, and good for Ireland.