Séamus Healy (Tipperary South, Workers and Unemployed Action Group) | Oireachtas source

I thought the other speakers strayed as well, if that is the case.

The question of austerity is an important one. One of the reasons I say the Minister should consider withdrawing this Bill is that today the IMF accepted at last what many of us have been saying for some time, that austerity is not working. According to both the Irish Examiner and the Financial Times today, and in its own report presented today, the IMF has now accepted this and that austerity has created further difficulties for the Irish economy. The IMF now states that for every €100 of austerity taken out of the economy through spending cuts and taxes, the effect has been double what it believed it would be, resulting in a reduction in economic activity ranging between €90 to €150 for every €100 taken out. Apparently, the IMF had believed that the reduction in activity would be perhaps €50 but it has now accepted that this austerity is taking out double, if not treble, what it originally thought. Surely it is food for thought for the Government that even the IMF has accepted that austerity is not the answer to our problems.

There is need for a new direction in economic policy in this country. We should put aside the austerity and the targeting of middle-income and lower-income families and embark upon a policy of stimulus and growth, ensuring that the very wealthy in this country pay their fair share of taxation.

There can be no doubt that there are very wealthy people in this country. It has been said that this is not a wealthy country but it is a very wealthy country. It is still probably the second wealthiest country in Europe. There is significant wealth in the country and various reports, including reports from the Central Statistics Office, confirm that. For instance, the Central Statistics Office confirmed that the wealthiest 5% in this country had increased their assets by €46.9 billion over the two years, 2009 and 2010. A report in the Sunday Independent in March of this year, by its financial correspondent Mr. Nick Webb, confirmed that the 300 wealthiest people in this country had increased their wealth from €50 billion to €62 billion in the previous 12 months. There is significant wealth in this country and there is definite need for a wealth tax.

There is a wealth tax operated in other European countries and in states in the United States of America. No doubt a wealth tax should be introduced. It would bring about significant income for the Exchequer. That needs to be done urgently.

There is also need for a new direction on job creation. We need a State-led job creation programme because the private sector will not create the jobs. The figures from the Central Statistics Office which I indicated earlier confirm that far from increasing jobs in the industries in the private sector, there has been no such response. The State needs not only to create the environment for job creation but also to create jobs. It needs to lead the way in this and only in that way can we ensure that there will be job creation. There is, in fact, an investment strike by very wealthy people in this country and, indeed, internationally. The State needs to lead the job creation drive and to ensure that people go back to work, that there are savings on social welfare and that families of middle-income and lower-income workers are not targeted, as has been the case.

I believe that we are on the wrong road. I believe that the Minister should withdraw this Bill, change direction and ensure that there is a stimulus in place for growth and for job creation. The State should get involved in job creation and the very wealthy people in this country should be made pay their fair share of taxation. That is the only road to recovery. Austerity, as we all know and as the IMF has admitted today, has failed and will fail in the future.

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