Unions seek 'recovery bond' and new property tax

You’re going to love this… :smiling_imp:

https://www.irishtimes.com/newspaper/breaking/2009/0116/breaking44.htm

I don’t want to bang on about public sector workers but there really is a level of hatred amongst private sector workers towards the public sector that I’ve never experienced before. I witnessed some awful scenes this morning in the Companies Office.

I don’t have any partciualr hatred towards the Public Sector…but the unions!!

Workers rights are protected by law, unions are past their sell by dates. Part of the reason we are in this mess.

ICTU & SIPTU both represent the private sector aswell.

wtf? :open_mouth:

Why???

Exactly TUG, I work in the private sector and the next few months are make or break.

Union are refusing to do over time or extra shifts to match orders (which can be very short notice) because the company could not pay the 6% pay increase.

The union will be the end of my place.

Isn’t it obvious why? I don’t include myself, btw, in the anger camp.

Blatant hypocrisy!

Not to me it isn’t other than possibly a co-ordinated media/ government campaign to (mis)direct anger towards workers, a ‘divide and conquer’ strategy. At least it keeps the riots away from bank hq’s.

Incidentally, I saw an army convoy driving through Terenure village yesterday evening during the rush hour. I’m not sure if they were preparing for civil unrest or pay cuts. :nin

I’m not going to fully jump back into this so-called debate on here, but I will make 2 observations:

Not a word so far about the Recovery Bond plan he has proposed or the reasoning (assuming there is any reasoning taking place) behind the presumption that it would not work.

Lately I have politely asked the pro public-sector cuts people to subject their views to a test: name a particular set of future figures which would prove them wrong. I named such a set of figures, but the opponents were content to keep their cards off the table.

Tons of anger are being measured out, but the scales are too insensitive to detect the trace amounts of economic analysis being used.

It’s always a good time for a Coup when the leader is out of the country.

All their proposals have some merit, unfortunately, nowhere near enough to address the immediate mess we’re in at the moment.

There’ll be a recovery bond but it won’t be voluntary subscription :nin

Don’t a lot of those “initiatives” kind of make the assumption we have money to spend. I want to see some suggestions from unions that will save money.

They can’t possibly think that banging a few extra percent onto the taxes of high income earners and increasing CGT will close the deficit especially if they’ve proposed about seven new investments the government should make!

Well, the cost of borrowing just shrunk due to the ECB’s rate slash. And how do we know the recovery bond idea wouldn’t help if the scale of the bond was large enough.

Right now, as a simple example, the highest-paid public servants are being heavily bashed. If the mandarins were to buy EUR100m of recovery bonds paying only ECB interest, that would significantly reduce borrowing costs.

Lower-paid public servants might offer to devote a portion of their salaries, plus a chunk of their savings to the bond.

Although, I think the most serious savings would be to get the Irish millionaires involved: tell them, en masse, that if they don’t pile their spare cash into the recovery bond, then the state will have no recourse but to introduce a wealth tax.

Double or treble the number of bodies in Revenue’s investigations and audits unit, send exploratory letters to all the thousands of millionaires who have dodgy tax affairs.

If a EUR1.5m investment in the Recovery Bond carries an automatic tax amnesty component, you could very easliy see a handy few billion come into it within a week.

Pretty damn good way to help plug a deficit. The USA’s war against Hitler was paid for by patriotic bonds bought up by US citizens.

Maybe future tax relief for every citizen who puts in 15% of their income to such a bond.

Just some thoughts.

It’s good to see the property developers are no longer calling the shots in this country - it’s back to the unions instead. Comforting to see a return to Ireland’s status quo :unamused:

Our current cost of borrowing is 200bps above Germany’s for obvious reasons. Why would anyone take on the extra credit risk of the Irish state for only the ECB rate?

Because the mandarins would be more looking for the goodwill of the Irish populace than for maximum return. That guy who offered to take a pay cut of 10K would be happy to buy at ECB rate, I reckon.

We all have a vested interest in seeing Ireland do well through these troubled times.

Perhaps Pinsters should band together to agree to buy a tranche of recovery bonds in return for needed reforms to the housing sector.

Invest in Pubic Transport 

Think I’m more worried about this than their proposal to renationalize Eircom, but only just.

Can somebody do the sums for me: if we got say €5bn this year in investments into a recovery bond, paying out at ECB rates, how much would that lower our total debt burden?

I’m a tad distracted at the moment, otherwise I’d try and figure it myself.