Govt to take action to 'unlock' National Training Fund
The Taoiseach has pledged that the Government will take action to "unlock" the National Training Fund. Addressing the Ibec President's dinner in Dublin, Simon Harris said this would happen before the end of this year. In recent years business organisations, which pay into the fund through a levy, have repeatedly called for the €1.4bn surplus in the fund to be released and used for initiatives to assist the sector. Mr Harris also told attendees that a memo will be brought to Cabinet next week to establish a new Better Regulation Initiative. This will work with industry to create a system within Government that moderates the cumulative effects of regulations or laws from damaging businesses. Ibec has sought the creation of a Better Regulation Unit within Government to monitor the costs of regulation, after various departments introduced a raft of new rules in recent years that businesses claim have driven costs higher. "It is so easy for us in Dáil Eireann to come up with a new bright idea," he said. "But we don’t have to pay for it." Backing business fundamental to Harris' vision Mr Harris also said that backing business is fundamental to his political vision and although the economy is doing well overall, he is under no illusions as to the challenges which also confront businesses. He said October’s Budget will contain another pro-business package, including changes to the tax system to encourage innovation and investment. "As part of a €1.4 billion tax package, the Budget will also contain a significant income tax and USC reduction package, this will benefit workers and households, and help to keep our tax system competitive," he said. "Simply put, I passionately believe that nobody on the average wage should be paying the higher rate of income tax." Mr Harris also said that the abolition of the USC surcharge on self-employed income is "unfinished business that I am determined must be delivered on". He said: "It’s a perverse state of affairs that those who risk the most are penalised the most. "The opposite should be the case. This is a vestige of austerity and it must go. We need to reward entrepreneurship, not penalise it, and my manifesto will make this clear." However, the Taoiseach said he disagrees with Ibec’s pre-budget position that there should be no further one-off cost of living payments. He said inflation has moderated, but prices have not yet fallen. "When money is plentiful, we do have a duty to provide people with financial support when it is needed," he claimed. He added that will be balanced by putting away billions of euro into the Future Ireland Fund and a record capital infrastructure investment programme. Proposal for new Department of Infrastructure The Taoiseach also warned that inflation has eroded the funding of the National Development Plan, and "we need to get a hell of a lot better at delivering projects in a time efficient manner and on budget." He said he had already outlined proposal to create a new Department of Infrastructure. The work of planning, preparing, procuring, producing and promoting capital spending happens all over Government, he stated. But a dedicated department led by a Cabinet minister, staffed by experts could be transformational, he added. In relation to competitiveness, Mr Harris told attendees that it must be a permanent focus of Government. He also outlined how there is a need to re-imagine public services, by reducing costs, restoring access, rolling out additional services and redesigning others through the use of technologies. "We need to right-size the State - not in per capita terms but just to keep up," he explained. He said that means more public servants in crucial roles in planning, local authorities and State agencies to meet the demands of a surging population. He said spending more and recruiting more without reform is a wasted opportunity and leaves us exposed for a time when money might not be so plentiful. Dublin Airport cap On housing, Mr Harris said he recognises that while more homes are being built this year than in any year since the financial crash, it is not happening quickly enough. "We must build at least 250,000 homes over the next five years," he said. While in relation to the passenger cap at Dublin Airport, Mr Harris said that while he cannot and will not intervene in the planning process, "that constraint should not prevent us from engaging on the solutions to protect connectivity and to protect jobs". He said in the time ahead, he would like to convene a dialogue with key stakeholders on planning for the future of Dublin Airport and indeed our regional airports.
