Sinn Féin has proposed additional spending of €13.5 billion for the rest of this year and next year in its alternative budget and cost-of-living package.
The party published its proposals in Dublin on Friday with party leader Mary Lou McDonald describing some of the bigger measures included as “emergency interventions in a time of emergency”.
The measures in the packages would entail between €3 billion and €4 billion of additional expenditure than is being proposed by the Government.
Sinn Féin finance spokesman Pearse Doherty said the party’s budget for next year would provide for overall net expenditure of €9.4 billion. The figure would have been €10 billion but for net taxation revenue of €600 million, which would be derived from new taxes mainly targeted at wealthier individuals.
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The party’s separate once-off cost-of-living package to meet the immediate difficulties posed by soaring energy prices and inflation would cost €4.1 billion, which it said would be funded by a projected exchequer surplus of €4.5 billion this year, in addition to €2.5 billion in unallocated spending. Mr Doherty said the party’s approach would still leave the State with a small surplus.
The main expenditure in the cost-of-living package would be a commitment to cap electricity prices at 2021 levels until next February. Mr Doherty estimated this would cost some €1.6 billion.
Asked if the prices would revert to market levels at that stage, he said there were indications the EU proposals for windfall taxes on energy producers would apply downward pressure at that stage. He said the party would monitor increases.
Asked if the cost of such a proposal could be estimated given the volatility in the markets, he said the projections provided for price increases due to kick in next month plus a €250 million buffer fund in case there were further rises before February.
Sinn Féin would also spend €1.5 billion on a once-off cash payment to people to help them meet other energy bills, with €500 going to those with the lowest incomes and €100 going to those with up to €70,000, with people earning more receiving no support. The party has also proposed a double child benefit payment in October worth €140 per child, which would cost €170 million.
The budgetary proposals involve a range of measures mainly aimed at those on welfare, pensions and on lower incomes, with those on middle and higher incomes benefiting less.
The party proposes to raise some €2 billion in new taxes, mainly directed at wealthier individuals. It includes a solidarity tax of 3 per cent on those earning more than €140,000, a feature of Sinn Féin pre-budget documents for some years.
The party proposes steep reductions in the Universal Social Charge for the two lowest bands, in addition to increasing the threshold to more than €24,000 for entry to the third rate. This would cost more than €600 million.
Other big tax concessions proposed include a reduction to excise duty on petrol, diesel and home heating until the end of March (costing €193 million) as well as one month’s relief for all those renting their accommodation (costing €300 million). The party also proposes increasing welfare rates by €17.50 per week and increasing the pension by €15.
“We would boost the income of more than 164,000 workers with a €1.40 increase in the minimum wage,” said Mr Doherty.
The party also said it would reduce the State pension age to 65, abolish property tax and halt any increases in carbon tax.
Ms McDonald was asked if the party’s targeting of wealthier people to pay more taxes would not have a chilling effect on foreign direct investment (FDI).
“We absolutely recognise that FDI is a critical part of the Irish economic model,” Ms McDonald said, adding she had met many such companies on a visit to California recently. “Of course, we want them to invest. We want them to come here and we want them to stay.
“But the reality is that you have to provide the infrastructure, the services and so on that make that an attractive proposition — you have to have an equitable and balanced taxation system.”
