Bold recovery plan for Republic

[Brian Walker]

As Irish ministers smart at the Financial Times” banana republic” description, a bold recovery plan has been put forward in the letters pages of the Irish Times. It comes from an old friend Willie McCarter, once CEO of Fruit of the Loom in Europe and for several years at the helm of the International Fund for Ireland. So he has plenty of experience of cross border development and the rigours of competition.

Extracts

“1. The social partners should agree to set aside the current pay agreement and instead agree an across-the-board reduction of 10 per cent in wages and salaries for a period of three years.
2. In return, the Government should immediately cut all VAT, VRT, and Stamp Duty rates by 30 per cent. It should also reduce duty on alcohol, tobacco and fuel by 10 per cent.
3. All financial institutions in the State should agree on a no-fee basis to set up a special savings account for every person in the State.

If the above were agreed I believe it would send a very serious message to multinationals, indigenous companies and start-up companies that we in Ireland were determined to regain our competitiveness. It would seriously encourage investment, create jobs into the future and over time would increase tax revenue.”

One appeal of the plan is that it gives individuals a direct handle on recovery, rather than wringing their hands and just waiting for it happen. If such a radical plan were implemented, the increase competitiveness accruing would have fresh implications for the North