THE PROGRESSIVE DEMOCRATS  A NATION THAT WORKS  PROGRESSIVE DEMOCRATS  BLUEPRINT FOR JOBS, FAIR TAXATION AND SOCIAL JUSTICE  FEBRUARY 1987  It's Time For Real Change!  It's time for change in Irish society - from top to bottom. That is why the Progressive Democrats were formed just a year ago. We are a party comprising people drawn from all walks of life who realise that the old ways - and the old political parties - have failed us.  This election offers you an opportunity to vote for real change; for a new way of tackling our economic and social problems; for a new kind of political leadership. Only the Progressive Democrats present that possibility.  In just twelve months we have changed the political debate in this country. We have spelled out a detailed plan to cut government spending. That is necessary to reduce state borrowing, and to enable standard rate income tax to be reduced, on a phased basis, over five years to 25%.  A fair tax system will reward people who work' and will encourage others to start up new industries, or to invest in existing ones. At present investors get a better return by leaving money idle in a bank or building society. That is a recipe for economic stagnation: stagnation that is now stalking the land. A fair tax system is also the key to combating the black economy.  Ireland is in crisis. Years of living beyond our means on borrowed money have caught up with us. The weight of government debt is crippling. Taxation is intolerably high' and Irish industry can provide only a fraction of the jobs that are needed to employ our workforce and offer hope to our school-leavers.  All around we see the consequences. A quarter of a million people unemployed. Over 30,000 more skilled, educated and willing to work' forced to take the emigrant boat and plane each year. And thousands of others just biding their time in job training and work experience schemes. With each passing month, the problems deepen. People generally are growing fearful about our ability as a nation to ever recover.  State borrowing has now grown into a mountain of national debt, totalling over  £23,000 million. Simply to pay the interest on that debt, eats up almost all the money collected in income tax each year. State borrowing has pushed up interest rates to a level that is crippling industry and agriculture. This has also led to a £50 monthly increase in the cost of the average house mortgage, above what they need be.  We must get back to basics if we are to survive. We must banish our dependence on borrowings, the emigrant boat and plane, and the awful problem of mass  unemployment. We have to begin living within our means. To do that requires a  government that runs the country efficiently, and gives real leadership.  Only when that happens will we begin realising our full potential. The proper development of agriculture, food processing, forestry, fishing and fish farming, tourism and other service industries can provide thousands of new jobs. But that will only happen in a competitive cost environment, where the price of products and the services they depend on in transport, telecommunications and energy match those in other countries. In other words, we are back again to the necessity to cut taxes, direct and indirect, and to restore incentive.  The Progressive Democrats have spelled out the cure to our problems. We have shown how taxes and government spending can be cut. This can be done while protecting those on social welfare At present the state attempts to spread inadequate health and welfare services too widely, and the poor often lose out.  The other parties have failed miserably. Fine Gael and Labour have wrangled with one another for the past four years, and ignored the worsening economic crisis. Fianna Fail seek to be all things to everyone, and are afraid to take any unpopular decisions.  The problems of the country, however, cannot just be talked away. To pull us back from the brink of social and economic collapse will require tough decisions to be taken. That will also require fearless and honest political leadership.  Only the Progressive Democrats have the policies to begin the task, the courage to stand by them, and the guts to see them through. Only by voting Progressive Democrat can the Irish people be guaranteed that they will get the kind of government which the country needs.  Building A New Republic  The Progressive Democrats aim is to provide government based on the following  principles:  - Government that is open and honest, and keeps the people informed;  - Government that is firm' but fair, and which works for justice for all;  - Government that is innovative, facing up to the challenges of the future, rather than clinging to outmoded policies and practices.  Over the past year we have spelled out the fundamental change that must be made to make this country self-reliant, prosperous and proud. To do this:  - We must develop an economy that provides real jobs for our people.  - We need change and reform across the entire spectrum of how we run government and administer our affairs, centrally and locally.  - We must change our approach to the development of industry and agriculture.  - We must halt and reverse the spiralling cycle of ever higher government spending, and consequential higher taxation.  - We must re-direct our social services to meet the genuine needs of the weakest groups.  - We must protect our natural environment.  - We must work for peace and reconciliation in Northern Ireland.  - We must have a more positive role to our participation in the European Community.  This is a formidable and complex agenda for action. But the Progressive Democrats have demonstrated clearly in the past year that they can meet the challenge. Success in dealing with these issues cannot be achieved by repeating the policies of the past.  Now is the time for Ireland to commit itself to clear and decisive policies, and  to apply them consistently until we have accomplished the task of making this country great again.  We will only support other parties in government which are committed to action along the lines of the Progressive Democrats' policies.  By voting Progressive Democrat the people of this country will have a guarantee of the kind of government they want.  Leading By Example!  Politicians must lead by example, if they are to expect the people to accept the tough decisions that are necessary to make this country great.  The Progressive Democrats propose the abolition of Ministerial pensions for sitting TDs, members of the European Parliament, members of the Judiciary and the President. The party introduced a Bill in the Dail last year to give effect to this, but neither Fianna Fail, Fine Gael, nor Labour would allow time to debate it, accordingly they prevented it taking effect.  The party also proposes:  - the abolition of the Senate;  - the reduction in the number of Ministers of State from 15 to seven;  - reduction in the number of TDs to about 120, as provided for by the Constitution.  - reform of Dail procedure to increase its sitting hours, and to make it work more efficiently.  Justice For All  The Progressive Democrats are committed to a major programme of law reform, and fundamental changes in the administration of justice.  Public confidence in the judicial system must be restored. To achieve this, it is essential to tackle the slow, cumbersome and costly legal process; reform the courts, and make the system intelligible to ordinary people.  We propose a new courts system and a new system for appointing judges.  The structure of the Garda force, and the training system for members of the Force must be reformed.  The Prison system must be reformed. The party supports the broad thrust of the Whitaker Report. Alternatives to custodial sentencing must be expanded for less serious offenders. Custodial sentences should only be a last resort, or/ and where it is the only sanction sufficient to express society's abhorrence of the crime, and to deter others from committing the same crime.  It is also important that justice is seen to be done in the courts, and that for serious crime, the punishment fits the crime.  But prison must also be a place of rehabilitation, offering the offender the opportunity of a new start.  The Progressive Democrats have also set down in their recent "Justice For All" document major reforms of the criminal law, including measures to confiscate the assets of drug dealers and racketeers; to toughen the law on bail, and to crack down on the activities of moneylenders.  We will introduce legislation to cope with the problems of under-age drinking and video-nasties.  Caring For The Disadvantaged  There are many disadvantaged groups in our community. Social justice demands that they be given the best support and protection that the community can afford, along with opportunities to develop their potential and play a fuller role in the life of the community.  To ensure this, health, education, social welfare and housing needs must be provided in a comprehensive framework.  The Progressive Democrats are committed to protecting the living standards of those dependent on social welfare, and to creating the maximum opportunities for their improvement. What the vast majority of social welfare recipients want most of all is the opportunity to work; to enjoy the dignity and self-esteem of having a job, and being able to look after their family by using their own skills.  The Progressive Democrats will insist on the payment of this year's social welfare increase in July, and the maintenance of the real value of welfare benefits.  We will carry out a major overhaul of the existing social welfare schemes. At present there are 19 different social insurance payments, and 12 social assistance schemes.  These must be simplified with more emphasis on local administration.  We will also change the Appeals system, to speed up appeals and to prevent people suffering from very long delays.  Social services for the old, the sick and the handicapped reflect the capacity of the wider community to afford them. That is why a thriving Irish economy is the surest foundation on which to maintain social progress.  The Progressive Democrats are also committed to:  - focussing welfare payments to those genuinely in need;  - putting greater emphasis and resources into community and home care of the sick, and the mentally and physically handicapped.  The physically handicapped must be accorded full equality of opportunity in the  educational system, and in fulfilling their right to work.  Care for the adult mentally handicapped including residential facilities, must be provided in a local neighbourhood setting as much as possible.  Protecting The Family  Although many promises were made during the last General Election about new  legislation to protect the family, very little reforms were actually introduced.  We propose:  (a) New legislaton to give the non-working spouse (generally the wife) who stays at home to rear the children joint-ownership of the family home and family property.  (b) To up-date our marriage laws by raising the minimum age of marriage to 18 for both sexes.  (c) To up-date the law on judicial separations in order to allow the Courts to grant a decree of judicial separation on the grounds of irretrievable breakdown of marriage.  (d) The creation of a Family Law Court, with full jurisdication over most family law cases. This should be staffed by Judges who have a particular expertise in family law matters, who would have a back-up team of counsellors, welfare officers and medical experts.  Putting Our Children First  During the last General Election there were many promises about new legislation  designed to protect the welfare of children. Again, very little of this has actually come into effect. We propose to introduce new legislation to protect children, particularly the children who are vulnerable - those born out of wedlock and those children who are abandoned, neglected, abused, or in care. We propose:  (a) New legislation to give equal rights and protection to children born outside  marriage.  (b) New legislation to allow for the adoption of legitimate children who have been abandoned, or neglected by their parents where this step would be in the best interests of the child.  (c) New legislation to up-date the Children Act 1908 in order to allow Health Boards to take steps to prevent child abuse and neglect.  (d) To provide separate legal representation for children in any Court proceedings where their welfare is at stake.  Realising The Potential Of The Public Service.  The Progressive Democrats see a restructured public service being at the core of a national patriotic drive to bring the country back to solvency and prosperity.  We endorse the reforms set down in the White Paper "Serving the Country Better', so far as it goes. And would apply its proposals to the wider public service.  But much more needed.  Real responsibility must be devolved to civil servants for the work they do. The myth of the Minister being responsible for every single Departmental item must end.  We propose reductions in outside consultancy work in Government Departments.  Generally, the civil service has the capability, and where necessary can acquire the expertise, if given the opportunity.  We are opposed to any enforced redundancies in the civil service or the public service.  Such a policy would only exacerbate the jobs crisis. Because of the Exchequer's  financial constraints, there must be a two-year freeze on recruitment in the  adminstrative and clerical grades of the public service. Civil servants will be deployed to the areas of greatest need, and this will ensure more rewarding career opportunities. This will be done in consultation with the civil service unions.  Modern management systems and new technology must be efficiently deployed in the  public service. This will ensure greater efficiency in the use of public funds, and the most efficient delivery of service to the general public.  A rewards scheme for improvements in efficiency and productivity will be introduced.  We will introduce protection for public servants who report improper practices or questionable procedures.  Jobs and Living Standards  Because we are a small country dependent on trade with the outside world, the key to success in creating employment and improving living standards is our ability to have enough activities that can compete successfully on export and home markets with firms from other countries.  Agriculture, industry, tourism, forestry, fisheries, financial and other services all have the potential to increase their contribution to this national need.  They face many obstacles in this task, not all of which are within our control or are capable of being quickly removed. There are, however, some major improvements we can make which would lead to the creation of thousands of extra jobs.  The two immediate steps we propose are:  - major tax cuts in PAYE and PRSI which protect and improve living standards of workers, without the need for large pay rises;  - major cuts in interest rates which will reduce business costs and help to finance fresh investment and development.  The essential step to achieve these two cuts is to reduce government spending and borrowing. Once government borrowing is reduced, interest rates can begin to fall to the levels prevailing in other European countries, which are as much as 7% below Irish rates (or half our levels).  If government borrowing is to be cut, then the only way in which to finance tax cuts is by reductions in government spending. There is no other way to achieve these two essential steps on the road back to increased employment and improved living standards.  We also propose to examine in the context of the 1987 budget the scope for tax  adjustments in sectors such as construction and the motor industry, which could  generate increased economic activity and jobs.  An Industrial Policy That Yields Jobs  Industry has been a major source of increased production in recent times. It has not, however, contributed significantly to meeting our employment needs because older. more labour-intensive industries have given way to modern, high-tech. firms, which employ fewer workers.  While the contribution of these modern firms is valuable and welcomed, it needs to be reinforced by greater effort, to develop industries based on Irish natural resources, and smaller scale businesses which can create jobs for thousands of people, especially our school-leavers.  Our policy proposals in this area include:  - Changing the present system of large capital grants for new industry to favour  employment;  - A business development scheme to give smaller firms greater support and improved access to finance at lower cost;  - Expansion of employee share ownership schemes to encourage greater participation and profit-sharing by workers.  - Ensuring equal opportunity in the industrial sector by eliminating the black  economy.  At present, the Revenue Commissioners are operating what is, in effect, a self  assessment system for the self-employed. We believe this should be formally  regularised, and a comprehensive self-assessment system introduced.  The present system of tax enforcement via either the County Registrar or a Sheriff seizing goods is outmoded and ineffective. The Progressive Democrats propose that the most effective enforcement measures against non-compliant taxpayers is through seizure of bank accounts and attachment of earnings.  Underpinning our entire approach will be the re-deployment of a significant number of civil servants into the Revenue Commissioners, and the waging of outright war on the black economy.  Creating A Tax Climate That Releases Enterprise.  The country faces a massive problem posed by the high levels of government spending and government debt. Spending has been rising much more quickly than we can afford. Taxes have shot up to excessively high levels, but even this extra money has not been enough to pay for the spending, so that more and more money has been borrowed.  There is no way in which this pattern can continue. The Progressive Democrats are the only party to have committed themselves quite clearly to ending this vicious trend by a policy of cutting both spending and taxes.  Spending must be cut in order to end the need for borrowing.  Taxes must be cut in order to create the opportunities for employment, and to restore the incentive to invest, as well as rewarding effort. Our policies in this area include:  - reducing the standard rate of income tax to 25% within five years;  - abolishing the PRSI contributions of workers.  - selling shares in state companies both as a way of promoting greater public and worker involvement in these companies, and as a means of raising funds to reduce government debt.  We published a detailed programme last Autumn to indicate the scale and the nature of the changes to be made each year over a four to five year period to achieve this fundamental reform in the whole area of government spending and taxation. This programme naturally needs to be updated to take account of the actual 1987 situation. But the basic programme remains unaltered. This year we propose to:  - abolish PRSI on the first i3,000 of employee earnings,  - reduce income tax to benefit all taxpayers, and finance these measures by reductions in spending, both current and capital. In addition we would also propose to implement the first phase of the public ownership programme. The target would be to raise £100 million in this way in order to reduce government borrowing for 1987 by this amount. By these steps we would make a positive start towards resolving our tax and debt problems in a manner that would assist the recovery of the economy, and the creation of employment.  The Wider Ownership of Public Assets  At present the effective power of the citizen and the employee in regard to the operation of state companies is limited to providing finance free. The organisations are run by their executives and a small number of higher public servants.  The sale of these operations to the general public with provision for their purchase by the staffs involved, private citizens, Irish pension and life assurance companies, will create a stronger identification of the public with the bodies concerned.  The performance of the bodies would be improved by this change. The subsidiary objective is to secure an improvement in the position of the public finances.  A Vibrant Agricultural Industry Producing For The Market-Place..  The Progressive Democrats have a comprehensive policy on agriculture and food. Some of the key considerations of our approach to this vital industry are:  - Reduction of the level of dependence on Intervention commodity products;  - Necessity to develop a greater mix of revenue-yielding activities on the farm, to support the maximum number of farm families;  - Insistance at EEC level that this country must be compensated for the impact of the beef and dairy quota restrictions. The price paid by this country for industrial free trade in the Community must be compensated in our natural resource areas. Our peripheral and economic handicaps as a Community member-state must be stressed.  - Abolition of the Land Tax, and taxation of farmers to be based on their income.  - Through our wider economic and taxation programme, focussed on getting government to live within the countries means, to create the right environment for farmers to develop their farms commercially.  Developing Our Natural Resources:  Tourism, Horticulture, Fishing, Forestry & Services. These are the sectors that hold they key to real economic recovery. But a proper tax climate and industrial environment is essential.  Internationally competitive transport, telecommunications and energy costs are prerequisites to any significant development in these sectors.  Ireland cannot sell holidays, food or fish products, financial services, or any other product in the EEC, or other world marketplaces, unless our prices and quality at least match our competitors.  An Ireland Worth Living In  Recently the Progressive Democrats published a comprehensive Environmental policy covering all aspects of the natural, built and social environment.  Our proposals include:  - Permissive Planning to overcome planning delays.  - Regional authorities to control air, water and waste pollution.  - De-exemption from planning requirements of state developments.  - Curbing Section 4 abuses.  - Legal changes to prevent developers making massive compensation claims where planning permission is refused.  - Penalties to force builders to complete housing estates.  - Nuclear power: Campaign for the closure of Windscale/Sellafield, and seek Irish onsite monitoring devices in all British nuclear installations.  Giving Power To The People  The Progressive Democrats support:  - Devolution of government administration to the community to units consistent with economic viability.  - Containment of the growth of Dublin.  - Decentralisation of government Departments and Administration, now made all the more practical by modern communications facilities.  Educational Priorities  The Progressive Democrats see the allocation of greater resources in pre-school and remedial teaching as the key to helping children in disadvantaged areas aspire to equal educational and job opportunities.  The party also supports changes in the school curriculum. At primary level, it must more adequately reflect the child's environment. At second level it must reflect the realities of social and economic life outside the classroom.  At third level the party will review the grants system to take account of family size, in addition to actual financial circumstances, and will also examine the feasibility of a student loans scheme to supplement, but not replace, the grant scheme.  - We support wider community use of educational facilities.  - We support the development of education programmes and courses by means of television and radio - backed up by correspondence courses and some class work, and a more flexible approach than the present school or campus centred programme, with a particular emphasis on adult and second chance education.  A special assault on standards of literacy in certain urban areas by assigning teachers to local communities to work with young people is supported.  Irish Language And Culture  The Irish language is perhaps the most unique and distinctive feature of our cultural heritage. However, it is in grave danger of extinction unless positive measures are adopted to ensure its survival.  The Progressive Democrats affirm that the survival, preservation, development and extension of the Irish language is one of the fundamental principles of the party.  A new approach is needed if the Irish language is to survive in a healthy state into the twenty first century. This party believes this aim can be achieved by a combination of idealism and realism, involving realistic and practical measures to preserve and strengthen the Gaeltacht areas and to encourage positively the greater use of Irish throughout the rest of the country.  Our policy document on the language and Irish culture spells out how the language can be developed, and the Gaeltacht regions can be economically expanded.  Working For Reconciliation in Northern Ireland  The Progressive Democrats are firmly committed to working for peace and reconciliation among the divided communities in Northern Ireland. We believe that the coming together of people in some  new form of government and administration calls for an open and generous spirit on the part of all. True unity in  a community must be built on the consent of the  people, not imposed by violence and intimidation.  The Progressive Democrats support the Anglo-Irish Agreement because it represents a recognition by both the British and Irish governments of the need to work for the creation of  new structures of administration.  The Progressive Democrats also believe that the practical work of building stronger ties of friendship and understanding between North and South should be promoted in areas such as education, co-operation in social services, development of trading and other economic links, as well as in the fields of culture and sport.  Playing A Role In The World.  Recent events have seen much questioning of Ireland's role in the EEC, in the UN and in aid to developing countries. The Progressive Democrats are committed to a forward looking view of Ireland's place in the international community, and are committed to maintaining our policy of neutrality.  We are also committed to our membership of the EEC. We support its fundamental aims of working for a closer union of the European peoples.  We also believe that our membership of the EEC enables us to exercise a degree of influence on the shape of policy adopted by the other member states. We recognise that membership will continue to give rise to issues on which the interests of the member states diverge, but the experience of the Community to date has demonstrated its capacity to resolve differences by negotiation.  We also support a policy of Ireland playing an active role in UN affairs. We favour converting many of our Embassies abroad into trade and promotional centres, in line with an Ireland House concept.  The Progressive Democrats also favour providing maximum help for the development efforts of Third World countries. We favour strengthening the links between voluntary and official aid programmes, so that we not only maintain the excellent reputation which Ireland has already achieved but enhance it in the years ahead.  Towards A Fair Taxation System - Phase I.  The Progressive Democrats Programme for Tax Reform in 1987.  For 1987 the Progressive Democrats propose the following major changes  to the outline budget published by the Government.  As the first steps in our five-year programme of  tax reform, we propose the following measures:  1987 Cost(Nine months)  - Abolish PRSI, Health and Youth levies on the first £3,000  of earnings for all employees £126 million  - Reduce Income Tax rates:  35%to33%  48% to 46% and  58% to 56% £103 million  Total Cost £229 million  - Abolish the PRSI allowance for income tax Saving £66 million  - Halve the tax relief for life assurance premiums Saving £14 million  Net Cost £149 million  - Pay Social Welfare increases in July 1987 £24 million  Final cost of programme £173 million  This programme will be financed by;  - Reductions in Capital spending £100 million  - Reductions in debt service cost £40 million  - Deferment of public service pay increase £33 million  Total £173 million  In addition, the aim will be to raise £100 million  by the sale of shares in State companies, or other  assets, to reduce total borrowing by this amount. The  result of these adjustments will be a current budget deficit  for 1987 similar to that of 1986, while the total  Exchequer borrowing will fall to £1,930 million or 11% of GNP.  This programme of reducing taxes, Government spending and borrowing, will  be continued over the following four years so as to  achieve by the end of 1991:  - Abolition of Employee PRSI, Youth and Health levies.  - A standard rate of income tax of 25% on the  first £15,000 of taxable income for single people, and £30,000  of taxable income for married taxpayers.  - A higher rate of 40% for the remainder of taxable income.  - A reduction in the level of Government borrowing to less  than 6% of GNP.  The tax reductions proposed for this year are aimed at  protecting the living standards of workers, without the need for  pay rises.  Hence they would protect existing jobs and encourage investment in  new employment.  They are equivalent to a pay rise of 4% or  more, and are tailored to give larger percentage rises to  lower paid workers. They should also contribute to bringing lower  paid workers out of the black economy.