Introduction by the leader of the progressive democrats,  Mary harney, td  Tackling the two-tier society  We are in the midst of an unprecedented economic boom. But  it has not impacted on the lives of thousands of our people.  The more we grow, it seems, the greater the sense of isolation  of those on the fringes.  Throwing money at the problem is no longer sufficient.  We have tried to defuse the slowly ticking social time-bomb  around us with haphazard hand-outs and makeshift schemes of  dubious merit for too long.  There has been plenty of rhetoric, alright - plenty of soothing  statements.  But we have never truly tackled this two-tier society of ours -  and displayed the conviction necessary to dismantle it.  Consensus is no bad thing in some respects - but if it props up  the status quo, it cannot be productive.  The challenge i set for the progressive democrats now is to  break the mould of this divided society.  The new government which i hope to be part of must have as its  primary goal the achievement of equality of opportunity for all  of our people.  Under our proposals, workers, home-makers, entrepreneurs,  pensioners, carers, and people with disabilities, have a lot to  look forward to and nothing to fear.  But there are people who have reason to worry if we get into  government.  They are the repeat offenders who make life a misery for  thousands of our people; drug barons who prey on the weak, the  vulnerable, and the poor; crime bosses who carry on their evil  deeds with impunity; fraudsters who don't pay their taxes;  golden circles who think they can have their palms greased by  politicians; and vested interests whose greedy agendas run  contrary to the needs and concerns of this society.  It is political decisions which have led to the social exclusion in  our society.  Political decisions must now be made to create one, united  society.  Mary harney, td  1. Rewarding work  The progressive democrats are the only party committed to tax  reform as a matter of political principle.  Sustained economic growth now presents us with a marvellous  opportunity to overhaul our system of personal taxation. The  combination of an increasing workforce and buoyant receipts  from vat and other indirect taxes means that total tax revenue is  now rising at more than £750m a year.  Let's use some of that money to reduce the tax burden for all  those who work for a living in this country. The progressive  democrats propose a five-year programme that will:  Reduce the basic rate of income tax from 26% to 20%  Reduce the higher rate of income tax from 48% to 40%  Broaden bands and allowances so that nobody on average  earnings is taxed at the higher rate  Convert the current system of tax allowances into tax credits  Phase out the health levy and the training and employment levy  Phase out employee's prsi.  Introduce tax relief for working parents in respect of child-  minding  Employee's prsi is the most unfair tax in our system because it  discriminates against lower-paid workers. Abolishing it will  ensure that the average worker will gain significantly from the  progressive democrats' tax package.  Over five years, for example, a single person on £300 a week  would see an increase of £40 in take-home pay, while a married  couple with one earner on the same wage would gain £30 a  week.  Tax reform is affordable in an expanding economy. In three  budgets between 1989 and 1992 the progressive democrats cut  the basic rate of tax by 5% and the top rate by 8%. A great deal  more can be achieved in the much more favourable international  economic environment which now prevails.  2. Promoting enterprise  It is the duty of government to foster a climate in which the  wealth-creating sector of the economy can create jobs.  The progressive democrats believe that a number of key  initiatives are needed to improve the business environment in  ireland:  The standard rate of corporation tax will be cut from 36% to  25%, with the ultimate target of 10% by the year 2010  The standard rate of capital gains tax must be cut from 40% to  20%, with a special incentive rate to encourage investment in  publicly quoted companies  The number of development agencies must be reduced so that  entrepreneurs can deal with `one-stop shops' at local level with a  minimum of bureaucracy.  Grants should be concentrated more on the seed-capital needs of  start-up firms with venture capital funds being given incentives  to provide development finance.  It is essential for irish industrial policy that we develop as many  home-grown success stories as possible. Otherwise, we will  continue to be overly dependent on transient foreign investment  to sustain our job creation effort.  These policies, coupled with continuing reductions in the rates  of employers' prsi, will facilitate an expansion in employment of  the order of 60,000 new jobs per year over the lifetime of the  next government.  A change of direction is required if we are to avoid the growing  casualisation of irish employment.  Some 20% of all private-sector jobs are now casual positions. It  is clear that employers are responding to more and more labour-  market regulations by turning full-time posts into casual ones. If  we want less casualisation, then we must have less regulation.  The progressive democrats are committed to amending the  legislation on working time, which prohibits private-sector  employees from working more than forty-eight hours a week.  We want to see an opt-out clause so that workers themselves are  free to decide how many hours a week they want to work.  3. Controlling public spending  Strong economic growth means that we can afford to cut taxes  without cutting services.  In the last five years, however, a public spending binge has  effectively pre-empted the fruits of economic growth, leaving  very little for reductions in personal taxation.  Public expenditure 1993-97  Inflation rate growth in spending  1993 1.5% 7.2%  1994 2.4% 7.3%  1995 2.5% 6.9%  1996 1.6% 4.8%  1997 1.7% 7.4%  Public spending has shot ahead of inflation by a wide margin in  each of the last five years. If the government had actually kept  expenditure in line with inflation some £2.7bn would have been  released to fund tax cuts, more than enough to cut everyone's  income-tax bill in half.  The rate of growth in public expenditure must be reduced.  Otherwise, we will not be able to reduce the burden of taxation  on working people and we will encounter major problems in the  event of a slow-down in the economy.  The progressive democrats will reduce the rate of growth in  current government expenditure to inflation plus 1% over five  years.  This is a reasonable target which will allow for significant  additional resources in health, social services and crime control.  Economies will be required, however, if this target is to be met  and that means that the issue of public service pay will have to  be addressed.  The progressive democrats propose a new productivity  agreement for the public service. This would reduce total  numbers through natural wastage and without the need for  redundancy payments. Front-line areas such as health, education  and crime control would not be affected.  An annual reduction of 2% would cut the number employed in  the public service by 25,000 over five years. This would deliver  savings of £700m on the public pay bill. Those savings would  be shared between public servants, in the form of productivity  bonuses, and taxpayers, in the form of tax cuts.  Commercial organisations have already faced up to the reality  of rationalisation and restructuring. The public service cannot be  excluded forever from that process.  4. European monetary union  The progressive democrats believe that ireland must keep its  options open in relation to membership of the european  monetary union.  Emu will be good for irish business and good for irish jobs. It  will reduce trade barriers right across europe. Ireland, in  particular, stands to benefit from lower interest rates - a vital  ingredient for economic prosperity and employment expansion.  However, it is unlikely that the uk will join emu in the first  wave and that could have major implications for the irish  economy. The uk is our largest trading partner: it accounts for  30% of our total trade while the five prospective emu members  on the continent account for just 25%.  This means that if we enter emu without the uk we are  vulnerable to an asymmetric shock - a sharp rise or fall in  sterling relative to our new currency, the euro. The  consequences of such a shock to the irish economic system  could be extremely serious.  It is vital that we have more extensive consultation before a  final decision on emu is made. In particular, the incoming  government must ensure that account is taken of the views of  the exposed sector, especially those small and medium  enterprises which will be most at risk.  We must make sure that the irish economy is able to cope with  the challenges of emu when the time comes. Meeting the  maastricht convergence criteria will not be enough. If we do  enter emu, we don't want to limp in, we want to march in. If we  are going into a hard currency then we must pursue a hard fiscal  strategy:  We must continue to run a surplus on the government's current  account.  We must eliminate exchequer borrowing within three years.  We must cut the government debt/gdp ratio to 50% within seven  years.  We must adhere to tight fiscal discipline if we are going to  survive and prosper inside emu.  Grief-sharing mechanisms must also be put in place. In the  event of a currency shock we will not be able to devalue or  revalue our currency. Nor will we be able to increase or  decrease interest rates: that will be the responsibility of the  european central bank. This means that the shock of adjustment  will have to borne by the labour market.  In a crisis, we can protect our competitiveness by reducing  wages. But can we expect private-sector workers to accept wage  cuts while their public-sector counterparts are getting wage  increases ? That would be grossly unfair, particularly as private-  sector workers are more heavily taxed than their public-sector  counterparts.  If we are serious about emu then we are going to have to face up  to some important decisions. An entirely new form of  partnership agreement will be required. This will be a real  partnership between the private and public sectors to ensure that  all sections of the workforce derive equal advantage from emu  membership. The risks and rewards must be evenly shared.  5. Public service reform  Public service reform is essential if we are to bring public  spending under control and adhere to the fiscal discipline  required for continued membership of emu.  The present structures in ireland are totally inadequate for the  task of managing a modern public service:  •there are no incentives in the system to limit growth in  spending.  •there are no incentives for managers to achieve savings.  •there are no incentives for staff to increase their productivity.  Any private-sector organisation in a competitive market that  operated on this basis would have gone bust years ago.  The progressive democrats propose the following initiatives to  prepare the irish public service to meet the challenges of the  twenty-first century:  ¨state services board: a state services board would be set up to  oversee the strategic management of the entire public service.  The board would monitor performance, make top-level  appointments, and fix targets and standards for the public  service. All departmental heads would be employed by the  board on fixed-term contracts.  ¨management autonomy: heads of departments and agencies  would have full management autonomy within their  rganisations, including the power to hire and fire as well as  flexibility in setting pay levels.  ¨cash limits: all departments and agencies would be required to  operate within strict cash limits set by government as part of the  budgetary process. Managers would be responsible for ensuring  that these limits were not breached.  ¨executive agencies: administrative areas such as the prison  service, the courts service and the social welfare services office  would be established as executive agencies, independent from  the departmental structure.  These reforms will give us a leaner but better-paid public  service. They will give us public-service institutions which are  managed to the same standards of efficiency and effectiveness  as their private-sector counterparts. The taxpayers of this  country are entitled to no less than that.  6. Competition and the state sector  The progressive democrats believe that the consumer comes  first.  We believe that competition is good for the consumer.  Competition increases choice and reduces price. The ryanair  experience shows how the whole economy can benefit from the  introduction of competition and the breaking of state  monopolies.  It should be the duty of government, therefore, to promote  competition to the widest possible extent for the benefit of all  consumers. There are several areas where the best means of  promoting competition is to reduce state involvement. Examples  include:  Banking: the state should shift acc, icc and tsb into the private  sector. That will give them access to new sources of capital and  give them the freedom to develop as stronger players in a  competitive market.  Health insurance: the vhi, under state ownership, is struggling to  survive in the new era of competition. State control is now a  hindrance, not a help, to the company. Its future depends on  private-sector support.  Telecommunications: telecom éireann needs competition in its  main market. The quickest way of achieving this is to demerge  cablelink from telecom éireann and turn it into an independent  company in the private sector. This could bring the cost of local  telephone calls down to as little as 2p.  It is also questionable whether the state can continue to combine  the roles of regulator and owner in so many key industries.  There is clearly a conflict of interest between the desire to  protect a state company from the forces of competition and the  desire to let consumers enjoy the full benefits of competition.  The progressive democrats believe that each state company  should be approached on a non-ideological, case-by-case basis.  In cases where shares in state companies are sold, the whole  process must be as open and transparent as possible. The  proceeds of such sales would be applied to reducing the national  debt and funding capital investment, not to increasing current  spending.  There must be provision for employees to purchase shares at  preferential rates. There must also be an opportunity for irish  financial institutions to invest in irish companies. Right now, the  telecom éireann staff pension fund can invest money in  telecommunications companies all over the world, but not in its  own.  The progressive democrats are opposed to the privatisation of  natural monopolies such as water and electricity distribution. In  industries such as this we see no merit in converting public  monopolies into private monopolies.  Semi-state boards  There is considerable public disquiet about the manner in which  people are appointed to the boards of semi-state bodies.  There is a public perception that people are being nominated to  state boards largely on the basis of their political affiliations and  not because of any expertise in the area concerned. This  perception has been greatly strengthened by the activities of the  rainbow government over the last two-and-a-half years.  The progressive democrats will introduce new procedures to  ensure that all appointments to state boards are made in an open  and transparent way and that the persons appointed are suitably  qualified for their positions.  Government ministers will be required to appear before  oireachtas committees to justify all appointments to state  boards. They will have to answer questions about the suitability  of their nominees and show that they have qualifications or  expertise relevant to the board to which they are being  appointed.  We believe that this system will go some way towards reducing  cynicism towards the whole political process and restoring  public confidence in it.  7. Controlling crime  It is the first duty of the state to protect the citizen. The high  level of crime which we are now experiencing shows that the  state is failing in its primary duty to the irish people.  The level of reported crime has risen by almost 20% since 1990  and offences are now being committed at the rate of 2,000 per  week. The public have lost faith in the criminal justice system,  particularly when they see serious offences being committed by  people on bail or people who are supposed to be serving prison  sentences for other crimes. At present, as many as 50 convicted  prisoners are being released from our prisons every day without  serving their sentences because of the acute shortage of  accommodation.  The progressive democrats have proposed a comprehensive  range of measures to deal with the crime problem and, in  government, the party will ensure that these are implemented.  Law enforcement:  • the garda síochána will be radically reformed into an effective  Crime-fighting force.  • garda morale will be rebuilt by resolving the representation  issue and By implementation of the progressive democrats' tax-  reduction policies.  • zero tolerance, the policy adopted by the party at its annual  conference in 1996, will be implemented.  Caring for the victim:  • the victim will be brought to centre stage in the criminal  justice system.  • a statutory criminal injuries compensation tribunal (cict) will  be set up.  • the cict will be funded from a criminal injuries compensation  fund into Which a fixed proportion of fines will be paid and into  which forfeited bail And unclaimed proceeds of crime, when  forfeited, will be paid.  • judges will be encouraged to impose heavier fines to finance  the fund.  • a convict's `choice' to elect for prison rather than a fine will  end.  • victims of sexual offences will be given court-room legal  representation to Protect their rights.  • the victims' charter will be fully implemented and victim  support groups Will be assisted.  Prisons:  • we will provide an extra 1,500 prison places through private-  sector construction And tax-driven financing.  • we will immediately provide extra interim prisoner  accommodation on army Properties.  • we will reduce irish prison costs from their present scandalous  levels and bring Them closer to international averages by  entrusting management of the prisons To a new independent  prison service.  • we will shut the revolving door and end the scandal of  temporary release And petitions.  • our jails will be made drug free by random testing of inmates.  Prosecutions:  • a unified prosecution service must be established, combining  the roles Currently exercised by the dpp and the chief state  solicitor.  • fast-track procedures will be put in place to eliminate delays in  the Criminal justice system.  • the director of public prosecutions must be made accountable  for overall Policy and performance to dáil éireann.  Criminal law:  • we will publish and enact a comprehensive criminal code  within eighteen Months of being elected.  • the law in relation to the right to silence of accused persons  will be reformed.  • the law of criminal insanity will be modernised.  • the law of criminal evidence will be reformed.  • we will introduce an annual criminal statute to keep the  criminal code up to Date and close off loopholes.  Sentencing:  • we will establish, for the first time, a statutory basis for  sentencing, including Minimum ten-year sentences for major  drug traffickers.  • we will provide for two-part deterrent sentences, a portion of  which would hang Over offenders after release as a disincentive  to further criminal activity.  • an independent parole and remissions board will be  established.  White-collar crime:  • tax evasion, company fraud, corruption and commercial crime  will lead to Jail sentences.  • the new criminal code will entirely restate and modernise the  law relating to Dishonesty, as proposed by the law reform  commission.  The bail laws:  • the decision of the people, as expressed in the referendum on  bail, will be Implemented.  • in cases where persons on bail do not show up for trial,  forfeiture of the bail Money will be pursued as a matter of  policy.  • forfeited bail will be paid into the criminal injuries  compensation fund.  Other measures:  • on-the-spot offences will be recategorised as civil  misdemeanours not requiring A court hearing unless contested.  • persistent offenders against the traffic laws will risk  disqualification.  • non-payment of on-the-spot fines will be regarded as a crime.  • we will examine the feasibility of privatising services such as  the towing away of vehicles and the enforcement of the  parking regulations.  Education, drugs and crime:  • a custodial detoxification centre will be set up to cater for  convicted persons With drug-addiction problems.  • addicts will not be released before the end of their sentence,  except into a Recognised drug treatment programme.  • tough measures will be taken against premises which are used  for drugs supply Or consumption: management of licensed  premises will have to implement an Active anti-drugs policy.  The progressive democrats recognise that drug addiction is now  a major contributor to serious crime. We must tackle organised  crime and its involvement in drug trafficking. However, we  must also ensure that comprehensive treatment facilities, and  not just methadone maintenance, are available to all addicts,  both inside and outside prison.  Civil and commercial law reform  The progressive democrats will bring forward a series of  measures to modernise the civil and commercial laws of ireland.  New initiatives to reform the law of hearsay in accordance with  the proposals of the law reform commission, and new laws for  the exchange and admission of documentary evidence, will  speed up and simplify court procedure, dispensing with  unnecessary witnesses.  New measures will be introduced to encourage out-of-court  settlements in personal injury cases and to prevent fraudulent  personal injury claims. New proposals will also be brought  forward for enforcing court judgements instead of the present  medieval practice.  The law in relation to arbitration will be modernised, and there  will be an international arbitration act.  We will also change the law to allow auditors to establish  professional corporations.  The progressive democrats favour the appointment of a legal  ombudsman to deal with disputes between the legal profession  and its clients. We will consult with the professional bodies in  the legal profession before deciding whether the office should  be established on a statutory or voluntary basis.  8. Reforming the dole system  We need to change our whole strategy for managing the  unemployment problem.  Ireland is the only country in the developed world that combines  economic boom with mass unemployment. There are a quarter  of a million people on the dole, yet employers are finding it  increasingly difficult to fill vacancies. We in ireland are now  bringing in workers from spain.  The dole system must be reformed. We propose the following  new initiatives:  Enforce the rules: the existing rules regarding qualification for  unemployment Compensation must be rigidly enforced.  Benefits should only be paid to those who Are available for  work and are actively seeking work: the dole was never  intended As a form of long-term basic income for those who are  unwilling to take a job.  Switch departments: all aspects of employment policy,  including management Of unemployment benefits, should be  transferred to the department of enterprise And employment.  The department of social welfare should have no role in the  Labour market.  Establish a national employment service: staff from both social  welfare and the manpower division of fás should be brought  together in a single agency, a new national employment  service. This body would operate through a network Of local  offices and would provide a professional job-placement and  advisory Service to its clients, the unemployed.  The new agency would be charged with the task of reducing  unemployment. Its staff would be trained and incentivised to  help unemployed people to find jobs. At present, there is no  organisation within the state bureaucracy with a specific  mission to reduce the numbers on the live register or to achieve  savings in the £1bn-a-year dole budget.  We will place special emphasis on ending the roll-to-dole  syndrome, whereby young people move straight from school on  to the dole queue. A whole generation of people has been lost to  long-term unemployment: it must not be allowed to happen  again.  All school leavers not going directly into jobs or on to third  level would be required to undergo assessment. It must be  recognised that every person has talents and skills. Once  assessed, each individual will be offered appropriate training or  work experience to enable them to develop as people. We will  end the current system whereby young people waste their lives  on the dole.  Any person refusing to accept a reasonable offer of training or  work experience would lose their entitlement to benefit  payments.  These measures, combined with real reductions in personal  taxation and prsi, will greatly increase the attractiveness of paid  employment and will help to shift people from welfare to work.  9. The role of women in irish society  The progressive democrats have done much to advance the  cause of women in irish politics.  From its foundation, the party has operated on the basis of  practical equality between men and women. Gender equality has  not been a token undertaking in the progressive democrats. At  every level in the party organisation, men and women are  equally treated in every respect.  The progressive democrats are the first party in the history of  the state to be led by a woman.  Half of the parliamentary party are women. Half of the party's  candidates in this election are women.  We are committed to the principle of equality and we will  ensure that women are given every opportunity to realise their  full potential in irish society. Accordingly, the party in  government will strive to implement the recommendations of  the second report of the commission on the status of women.  we are equally committed to advancing the cause of irish  women in society at large and to ensuring that whatever role  women choose to play in irish society, be it in the home or the  workplace, is respected and supported.  10. Supporting the family  The state is not doing enough to support the family unit.  There are many anomalies in the social welfare system which  actually encourage people not to get involved in stable  relationships. In some urban areas, the extra-marital birth rate is  over 40%.  In the long-term, social habits conform to economic realities,  and behaviour patterns are beginning to reflect the diminished  value of the family in tax and welfare law.  While the state must cherish all its children equally, that does  not mean that it must be indifferent as to whether children are  raised in a home founded on a stable relationship.  We must refocus the tax and welfare system in favour of the  family.  We will bring in new measures to encourage young single  mothers to remain with their families, rather than set up one-  parent homes.  The progressive democrats will consider how the social welfare  system can be adjusted to best represent the interests of the  child. We believe the state must face up to the proposition that it  is part of the problem, and must move quickly to become part of  the solution.  11. Social solidarity  The progressive democrats believe that the social welfare  budget must be managed so as to target benefits at those who  need them most.  Accordingly, the system will have to discriminate between those  who have the option of working and those who are unable to  help themselves through their own efforts. We can no longer  persist with our current scatter-gun approach to welfare  spending.  Unemployment currently swallows up almost a quarter of the  total welfare budget every year. In fact, the cost to the  exchequer of subsidising unemployment is greater than the cost  of the defence forces, the garda síochána, the prison service, the  courts and all of the state legal services put together.  Falling unemployment will reduce the pressure on the overall  welfare budget. This will release substantial resources to help  those welfare recipients who are most in need of state support.  We will ensure that the real value of benefits is increased at  every budget for all welfare recipients.  In addition, we will progressively relax the qualifying criteria  for the carer's allowance - first introduced when the progressive  democrats were in government - to ensure that more carers can  get the benefit.  The value of unemployment compensation payments will be  raised in line with inflation, but will not be increased in real  terms. The genuine unemployed want more jobs, not more dole.  12. Civil rights for senior citizens  It is the over-65s who have built the modern ireland of today.  It is their taxes and their efforts which have provided the  foundation for the prosperity which we now enjoy. The huge  contribution made by the older generation must be recognised in  our tax and welfare systems.  There are now 400,000 people over the age of sixty-five living  in this country. Even though the over-65s account for more  than 15% of the voting population, their needs are not being  dealt with by the political system.  Modern irish society owes a big debt to the generation that is  now over 65: we must ensure that that debt is fully and  adequately repaid. The progressive democrats base their policies  towards the elderly on five key principles:  Personal security: older people are entitled to live in their homes  or walk the Streets without fear of robbery or assault.  Financial security: older people are entitled to a level of state  pension that Eliminates the fear of poverty in their retirement  years.  Fair taxation: older people are entitled to special treatment by  the tax system That recognises the huge contribution they have  already made to irish society.  Independent living: older people are entitled to every assistance  to enable them, as far as possible, to live in their own homes  and in their own communities.  Full representation: older people are entitled to full  representation in the Partnership process which now makes  most of the important economic decisions In ireland today.  If we base public policy on these principles, we can ensure that  the over-65s enjoy fully the fruits of our current economic  growth and that their quality of life is protected. Retired people  have rights: it is time we started to respect those rights.  The progressive democrats participated in the drafting of three  budgets between 1989 and 1992, a period when there was  severe pressure on public spending. Despite that, the  progressive democrats worked hard to ensure that pensioners  were looked after. We increased the old-age pension at an  annual rate of almost 5% every year that we were in  government.  Compare that with the performance of the present  administration. No government in the history of the state has  enjoyed such economic good fortune as the rainbow coalition no  government in the history of the state has had so much money to  spend. Yet, it has only increased the old-age pension at an  annual rate of 3%, a miserable performance at a time of the  most rapid economic growth this country has ever experienced.  The progressive democrats in government will continue to put  pensioners at the top of the political agenda. Economic growth  means that there is enough money to pay an economic dividend  to the pensioners of ireland. We will ensure that they get that  dividend.  Accordingly, we are committed to increasing the value of the  old-age pension to £100 a week over the lifetime of the next  government.  This objective is affordable and has been costed on the basis of  continued economic growth over the next five years.  13. Health  The cost of running the health service has increased by almost a  billion pounds over the last five years.  In fact, health expenditure has risen by 50% since 1992 - more  than five times the rate of inflation. The 50% increase in  expenditure does not appear to have resulted in a 50%  improvement in service. Despite the huge additional resources  that have gone in, there are still major deficiencies in the irish  health service:  Waiting lists for public patients are unacceptably long  Many general hospitals are seriously underfunded  Facilities are inadequate in specialist areas such as geriatrics.  The progressive democrats in government will commission a  comprehensive value-for-money audit of the entire health  service. This has never been done since the present structures  were put in place twenty-seven years ago.  An in-depth audit is essential if we are to identify the serious  regional imbalances that have developed in the system. There is  now a huge variation in the spend-per-head in the different  health board areas and in the spend-per-bed in the different  general hospitals.  An audit will also identify how much of the extra spending on  health has gone into bureaucracy and administration, and how  much has gone into increasing service levels and improving  patient care.  The needs of those addicted to drugs will also be addressed.  Waiting lists for treatment must be eliminated: everyone who  presents for drug treatement will receive a comprehensive range  of services, not just methadone maintenance. Methadone  maintenance is appropriate and necessary for stabilising chronic  drug abusers but other drug-free therapeutic services must be  developed and expanded.  The progressive democrats are strongly committed to the  concept of private health insurance. We want to see the  maintenance and development of a competitive market based on  the fundamental principle of community rating.  The vhi must have access to new sources of capital and  expertise if it is to remain a strong player in the market. We  believe that the vhi can only survive and prosper if it is  privatised or part-privatised. The minister for health cannot  continue to be both owner of the vhi and regulator of the market  in which it operates.  The blood transfusion service board  The tragedy of hepatitis c must never be allowed to happen  again.  The progressive democrats in government will ensure that the  recommendations of the finlay tribunal are fully implemented,  and we will also reconstitute the blood transfusion service board  as an entirely new entity. Changes to be introduced will include  :  The blood transfusion service board's dublin hq will be  immediately Relocated to a new site in a new building with new  equipment  The new site should be in close proximity to a major teaching  hospital  The operations of the service will be closely monitored by the  irish Medicines board  A blood service consumers council will be established on which  both Blood donors and the recipients of blood and blood  products will be Represented.  The whole blood service needs to make a fresh start. There must  be proper procedures for the recall of unsafe products and for  the immediate replacement of defective products. The service  must be run in accordance with internationally recognised  quality management standards.  It is vital that public confidence is restored as soon as possible  in this most essential public service.  14. The needs of people with disabilities  The progressive democrats in government will undertake a  major initiative to ensure that people with disabilities, whether  mental, physical or sensory, can play a greater role in all  aspects of irish life.  The progressive democrats will also review as a matter of  urgency the implications of the supreme court decision on the  employment equality bill as it affects people with disabilities.  The availability of personal assistants can substantially enrich  the lives of persons with disabilities. The services of a personal  assistant can enable people with disabilities to:  Move out of residential care  Avail of educational opportunities  Participate in the workforce.  At present, only a small number of people actually have  personal assistants. Most of these assistants are employed  through the part-time fás community employment scheme  which lasts for only one year. At the end of the year a new  assistant has to be hired and trained in and this is an expensive  process.  What people with disabilities need is an independent source of  funding that will finance the recruitment of full-time personal  assistants on a permanent basis. The progressive democrats  support the establishment of an independent living fund to be  financed by the state.  People with disabilities have a huge contribution to make to the  life of this country. It is up to the state to provide the resources  to enable them to make that contribution.  We will implement the recommendations of the report of the  commission on the status of people with disabilities.  The special olympics is of enormous value in enabling those  with learning disabilities to realise their full potential and is  very deserving of public support. At present, special olympics  ireland receives no funding at all from the exchequer and gets  only £41,000, or just 11% of its budget, from the national  lottery.  We propose a significant increase in public funding for the  programme so that state support will account for 50% of the  overall budget within five years.  The lack of adequate residential facilities for those with mental  handicap will also be tackled. There is a also a clear need for  more resources to be put into respite care, where there is a  critical gap at present. The progressive democrats will make this  a priority area within the overall health budget.  15. Education  The progressive democrats support the concept of pluralism in  the irish educational system. We believe that there should be the  maximum degree of autonomy for individual schools and the  minimum degree of state interference in the management of our  schools. Parental choice should be a core principle underlying  the whole system.  We will retain the system of free fees for third level education,  but we disagree fundamentally with the government's proposals  to establish a network of regional education boards around the  country. This is a totally unnecessary extra layer of bureaucracy  which could cost up to £100m a year to run once it is fully  operational. This is a waste of resources which should be  invested in improving the quality within our educational system.  The progressive democrats in government will legislate for the  abolition of the regional educational boards. Instead, we favour  a partnership approach between parents, teachers and managers  to identify educational priorities. Education has a major role to  play in tackling social and economic disadvantage and our  spending priorities in this area must be clear:  Primary education: under the labour party, the primary sector  got the lowest Priority in terms of budget allocations over the  last five years. We believe it Should get the highest priority as  this is the area where the greatest need arises.  School building: the allocation of funds for school building  must be made in A fair and transparent way. Political  favouritism must be removed and decisions should be made  purely on the basis of clearly set-out criteria. Otherwise, we will  never get rid of the sub-standard accommodation in which many  children, particularly those in rural areas, receive their  schooling.  Pre-school services: there is virtually no state support for the  pre-school sector. Yet, the importance of pre-school education  is widely recognised. The department Of education must  allocate a specific budget for pre-school services and ensure  That proper standards are maintained in the pre-school sector.  Parents-as-first-teachers (paft): paft programmes have been  successfully Used to combat educational disadvantage in many  countries. Under paft, first- time parents in deprived areas are  visited by a trained educator/health visitor from The pre-natal  stage until the child is three years of age.  The progressive democrats want to see paft piloted in a number  of the more disadvantaged communities, especially in the major  cities. The first three years of a child's life are vital in terms of  life-long educational development: paft can ensure that children  are not already hopelessly disadvantaged before they ever set  foot in school.  We recognise the valuable contribution made by the youthreach  programme in providing new opportunities for young people  from deprived backgrounds, especially in the larger urban areas,  and we are committed to putting more resources into this  programme.  16. The environment  Environmental protection  Our environment is our greatest asset and the progressive  democrats have the best track record of any party when it comes  to environmental protection.  In government, the party will pursue a range of new initiatives  designed to protect and enhance our natural environment:  ¨ air quality: we will extend the ban on smoky coal, originally  introduced by Mary harney, to all major urban centres. It is  currently limited to cork and Dublin.  ¨ waste minimisation: we will impose taxes on disposable  packaging, such as supermarket plastic bags, beverage cans and  fast-food wrappers, as part of a Comprehensive waste  minimisation strategy.  ¨ recycling: ireland is way behind the rest of europe when in  terms of recycling. We propose a national recycling programme  and the aim must be to have 50% Of all packaging materials  recycled by the year 2001.  ¨ waste to energy: landfill cannot remain the primary route for  the disposal of Solid waste. We propose that non-hazardous  waste be used to fuel a network of New waste-to-energy power  stations supplying the national electricity grid. This System is  operating successfully in other countries and would reduce the  volumes Going to landfill by about 90%.  ¨ food safety: we propose a new food quality service to oversee  all aspects of Food production. The new service would operate  in the consumer's interest and Would be entirely independent of  the department of agriculture.  ¨ water: substantial investment is required to improve water  quality. We also Need to conserve water and funds are needed  to upgrade infrastructure to Prevent leakage: 40% of dublin's  supply is currently lost through leakage.  We recognise the unfairness of the present system of water  charges. Instead, we propose the installation of water meters in  all houses, on a phased basis over the period up to the year  2010. Each household would receive a free water allowance  sufficient for the reasonable needs of a family, and would  thereafter be charged on the basis of usage for any excess.  Treated water is a scarce resource which must be conserved. To  make it available in unlimited quantities free of charge to every  household would be environmentally irresponsible.  The nuclear threat  The sellafield reprocessing plant, and the numerous other  nuclear installations in britain, are the greatest environmental  threat facing this country.  In relation to sellafield, we must first seek to minimise the threat  posed by reducing the scale of its operations. This can be  achieved by limiting the international trade in nuclear waste:  sellafield is currently the world's nuclear dustbin. Our ultimate  aim must be to have the plant closed down altogether. In the  meantime, we must make sure that sellafield, and other british  nuclear plants, are run to the highest international safety  standards.  The progressive democrats want to see an independent eu  agency which would take responsibility for the monitoring of all  nuclear installations in eu member states.  Brussels already issues detailed directives on virtually every  aspect of environmental policy, from water quality to waste  management. It surely makes sense for the eu to take a hands-on  role in the area of nuclear monitoring, particularly as an  accident in one country could have devastating consequences  for the whole union.  Non-ionising radiation  The proliferation of communications masts and electricity  pylons in recent years has given rise to concern about the  possible effects of non-ionising radiation.  There is a need for public reassurance in this area. The  progressive democrats would favour the establishment of a pilot  monitoring programme, possibly under the aegis of the  radiological protection institute, to examine this question and  publish its results.  The built environment  The progressive democrats introduced a comprehensive  conservation bill last year which was voted down by the  rainbow coalition.  This was designed to protect and conserve buildings of unique  artistic, architectural and historic merit and to prevent some of  the environmental scandals of recent years whereby such  buildings have been either demolished or allowed to fall into  dereliction. The progressive democrats are committed to re-  introducing this bill and having it enacted into law during the  lifetime of the next government.  We will also take action need to speed up the procedures for  dealing with planning applications. This process is now subject  to long delay in many local authority areas.  Halting sites for travellers  The progressive democrats support the provision of halting-site  accommodation for the travelling community.  It is important, however, that the development of new halting  sites is subject to proper planning procedures. Currently, many  sites are chosen purely on the basis of availability. We propose  that the development of such sites by local authorities be subject  to the planning process in the normal way.  This would ensure that there is adequate public consultation,  and an appeal process so that individual sites can be designed to  suit the particular area in which they are to be located.  Inland fisheries  The progressive democrats propose that responsibility for inland  fisheries be transferred from the department of agriculture to the  department of the environment. The conservation of fish stocks  and the protection of our inland waterways are responsibilities  which should be in the environmental arena.  We would also reorganise the central fisheries board and the  regional fisheries boards to ensure that the development and  promotion of our game and coarse fishing resource is given  priority.  17. Agriculture and rural development  The progressive democrats are strongly committed to supporting  irish agriculture.  We want to ensure that farmers and all those who live in rural  communities share fully in our current national prosperity.  Right now, rural ireland should be booming. The national  economy is growing. Subsidy payments from brussels have  never been higher. Money is available for rural development  projects.  But rural ireland is not booming as the evidence clearly shows:  • cattle producers are in severe financial difficulties due to the  collapse In the beef market.  • people are leaving agriculture at the rate of a hundred a week  because they can No longer earn a living wage from it.  • depopulation is now ravaging rural communities: roughly half  the rural districts In the country suffered a fall in population in  the 1991-96 period.  Some 20,000 farmers have left agriculture altogether in the last  five years, and this at a time when eu subsidies have never been  more generous. Clearly, present policies are failing to address  the real needs of rural ireland.  The european union is pumping £30m a week into irish  agriculture. It is now apparent that all farmers are not getting  their fair share of this largesse. The forthcoming renegotiation  of the common agricultural policy provides the next irish  government with a real opportunity to deal with the problems  confronting irish agriculture. Reform of the cap must involve:  ¨ income support: price-support mechanisms are essential but a  greater share of the budget must be concentrated on direct  income support for farmers. At present Only half the agriculture  budget is paid directly to farmers.  ¨ family farms: the income-support system must be biased in  favour of smaller Producers, the objective being to ensure that  family farms will be viable as we Face into an increasingly  competitive international food market.  ¨ commercialisation: large-scale commercial producers must be  given the freedom to increase their output. This will greatly  reduce their dependence on Subsidies and enable ireland to  increase significantly output, exports and Employment in the  food and agricultural sector.  We also need a coherent national strategy for the management  of our currency to ensure that irish agriculture does not lose out  from our prospective membership of emu. In order to eliminate  uncertainty, the incoming government will have to signal  clearly in advance the exchange rates against the main european  currencies at which it intends to enter emu.  The irish government must press the european union for the  reversal of the cuts which have taken place in the value of  export refunds. These cuts have severely reduced the value of eu  price supports to irish producers.  Over the longer term we must recognise that there is no real  future for the irish beef industry if it remains heavily dependent  on subsidised exports into artificial markets. The primary goal  must to be to develop the commercial trade in added-value beef  products to the main markets of britain and continental europe.  The progressive democrats want to see the existing agricultural  supports budget used to fund a number of new initiatives:  M computerisation of herd records: a system for the full  computerisation of all Cattle herds is needed so that all animals  can be tracked from birth to slaughter.  M beef assurance scheme: a comprehensive, nationwide  assurance scheme for Irish beef, based on quality, safety and  traceability.  M organic farming: a 1% tranche of the total agricultural  supports budget should Be channelled into assistance for  organic farmers. This would put about £15m a Year into the  organic sector and would enhance ireland's image as a source of  Good and wholesome food.  M alternative enterprises: a subsidised loan scheme is required  to provide Development capital for farmers wishing to diversify  away from cattle Production into alternative farm enterprises  such as agri-tourism.  An independent food safety board is needed to oversee all  aspects of food production. Consumers, both at home and  abroad, must be assured of the quality and safety of irish food if  the industry here is to prosper.  The progressive democrats also favour a range of measures to  encourage off-farm rural development and halt the continuing  fall in population.  The ida grants system must be tilted in favour of the smaller  towns and villages: at present, three-quarters of all ida new job  announcements go to the dublin region. Also, the first-time  homebuyers' grant must be tilted to provide people with an  incentive to live in rural communities. Otherwise, our major  cities - and dublin in particular - will continue to sprawl into the  surrounding countryside.  18. The fishing industry  Ireland has huge marine resources at its disposal  Our economic zone covers 132,000 square miles of sea: yet, our  sea-fishing industry is severely undeveloped. There are only  3,200 people involved in sea fishing on a regular basis: this is  less than the number of civil servants in the department of  agriculture.  We need a coherent development strategy for sea fishing. This  is essential if we are to build confidence in the industry and  provide all those involved in it with a long-term planning  context.  The progressive democrats are committed to a range of  initiatives to stimulate the development of the fishing industry:  • policing: it is estimated that £3bn worth of fish is poached  from irish waters every year due to the under-reporting of  catches by flag-of-convenience vessels. A tough policing  policy is needed for irish waters. We must secure from the eu A  financial commitment to provide the naval service with the extra  vessels it needs To patrol our waters properly.  • access to fish stocks: we must renegotiate our fisheries  agreement with the eu So that irish fishermen can have greater  access to the fish stocks in our own waters.  • fleet modernisation: our fishing fleet is old, unsafe and  uncompetitive. Investment in new vessels must be encouraged.  This can be done either through Tax breaks or a subsidised  loans scheme.  • processing: there must be a coherent strategy for the  development of the Processing industry. At present, we import  high-value processed products While we export low-value  commodity products.  The fishing industry has the potential to make a huge  contribution to the irish economy in terms of both employment  and exports, particularly in the more peripheral regions of the  country. It is time that government took determined action to  release that potential.  19. Promoting tourism  The irish tourism industry has achieved phenomenal success  over the last ten years.  The explosion in tourist numbers has created thousands of new  jobs and generated substantial additional tax revenues for the  exchequer. The total contribution of tourism to the national  economy is now of the order of £2.5bn per year.  It is important now that we keep the industry on track for further  growth. The progressive democrats in government will pursue a  number of specific initiatives to promote the development of  irish tourism:  • labour costs: our plans to cut personal tax rates and cut  employers' prsi To a standard rate of 7% will make it easier for  the industry to recruit staff And will reduce its operating costs.  • corporation tax: reducing the standard rate of corporation tax  to 25% by 2002, and to 10% by 2010, will allow the industry to  retain a significantly greater Share of its profits and will release  substantial funds for investment in the Tourism infrastructure.  • international access: reduced access costs - particularly for air  access - have Been a key factor in bringing more tourists into  ireland. Government must take Action to maximise competition  in aviation, airport services and ferry services To ensure that  access costs are kept low and reduced further if possible.  • duty free: we will press the european commission to retain  duty-free sales for bona fide travellers to and from ireland in  order to keep down operator costs, and ensure that fares are kept  as low as possible.  • marketing: we propose that increased funds be provided for  the overseas Tourism marketing initiative (otmi). We believe  that any such investment will Pay for itself by a factor of ten in  terms of increased tax revenue from tourism.  It is important also that otmi has a greater regional focus. All  areas have benefited from increased tourism earnings but the  benefits have not been evenly spread. Specific initiatives are  required to market the tourist attractions of the more peripheral  regions on foreign markets.  20. Minerals policy  Ireland urgently needs a coherent national minerals policy.  This is essential if we are to stimulate exploration activity and  ensure that our mineral resources are fully exploited for the  benefit of the whole economy. Our key objectives in  government will be to:  - foster a climate of clarity and certainty for all companies  contemplating Exploration or investment in ireland  - set out clear fiscal and legal terms governing all aspects of  exploration and Mining activity  The progressive democrats will draw upon the government-  commissioned report of the national minerals policy review  group as the basis for formulating a coherent and equitable  national minerals policy.  21. Defence  We spend half-a-billion pounds a year on defence. Yet, there is  no clear understanding of what our national defence policy is  supposed to be.  The progressive democrats in government will publish a white  paper on defence policy in order to provide a planning  framework for our defence forces for the next decade.  We recognise the need for closer military integration and co-  operation with our european partners. Accordingly, we favour  irish participation in peace-keeping and peace-enforcement  initiatives, including partnership for peace.  The progressive democrats support the current rationalisation  and restructuring process that is under way in the permanent  defence forces (pdf) and we believe that it should continue. As  part of that process we want to see:  ¨ the relocation of army headquarters to a single site on the  curragh  ¨ full management autonomy for the pdf  ¨ the role of the department of defence limited to policy matters  ¨ the reallocation of savings arising from rationalisation to  equipping and Resourcing the pdf  ¨ priority given to upgrading accommodation and operational  capability.  The representative organisations for the pdf are currently  excluded from the partnership process through which national  wage agreements are concluded. We will put in place a  consultative process whereby the views of pdf members and  pensioners can be taken into account in the drafting of future  agreements.  22. Northern ireland  The progressive democrats want to see a peaceful resolution of  the conflict in northern ireland.  The most essential step on the road to a lasting peace settlement  is for the provisional ira to unequivocally and immediately  reinstate its ceasefire: that will end the republican movement's  self-imposed exclusion from the talks process.  We believe that any lasting and long-term settlement will have  to be based on certain key principles:  (i) there can be no purely internal settlement.  (ii) there can be no change in the constitutional status of  northern ireland unless and until a majority of the people there  wish it.  (iii) the right of the majority in northern ireland to opt for the  uk rather than a united Ireland does not imply a right to override  the legitimate interest of the british and irish Governments in  creating a genuine partnership society in northern ireland.  We believe that an all-inclusive talks process which pays due  regard to these principles can produce a settlement that will  include:  A new political order, with genuine parity of esteem and  recognition for both Communities  A written constitution for northern ireland, including a bill of  rights and Democratic institutions  A maximisation of the degree of self-government in northern  ireland  New policing structures which will enjoy cross-community  support  A north-south dimension in areas of mutual interest.  The progressive democrats will work with the new british  government to make progress on all these areas, the objective  being a permanent resolution of the long-standing conflict in  northern ireland.  23. Foreign affairs  Ireland has benefitted greatly from its membership of the  european union.  We will face major challenges on the european front over the  next five years and the new government will have to ensure that  irish interests are fully defended:  Enlargement: we support the eastward expansion of the eu. We  must Be careful, however, that enlargement of the union does  not result in Renegotiation of the cap to the detriment of this  country.  Institutional reform: we will work to protect the interests of  smaller member States in any reform of the institutions of the  eu.  Environmental policy: the progressive democrats strongly  support the Central thrust of eu environmental policy and we  disagree strongly with The present government's refusal to  recognise the `polluter pays' principle.  Structural funds: ireland has done much to close the income gap  with the rest of europe. We must now adopt a regional  approach to make sure that the more Disadvantaged and  peripheral regions retain objective one status and Maintain their  entitlement to continued funding from brussels.  State aids: ireland must lead the campaign for a reduction in the  level of State aids to industry in europe. This country is too  small to fight and win A grants battle against the major  economies such as france, germany and The uk.  The progressive democrats in government will use ireland's  voice on the international stage to speak out against human  rights abuses around the world, wherever they occur, and to  argue for a better deal for third-world countries which are  burdened with mountainous debt levels.  The progressive democrats will commit additional resources to  development co-operation. We will make substantial progress in  increasing the development aid budget over the next five years  towards an eventual target of 0.7% of gnp.  We recognise the great contribution that is being made by irish  non-governmental organisations in the area of development co-  operation and we will ensure that the state provides them with  increased financial support.  24. The irish language  The state is putting a huge effort into the teaching of the irish  language.  Students will have studied irish for more than 2,000 hours by  the time they complete their leaving certificate. Yet, all the  indications are that this massive effort is not succeeding: in  surveys, 78% of adults in this country admit to having little or  no ability to speak the irish language.  The progressive democrats published a comprehensive policy  document on the teaching of irish last year. Its main conclusions  were that we need to:  - make irish-language teaching available to pre-school  children.  - provide more support for gaelscoileanna, given the success of  all-irish schools.  - place a greater emphasis on the teaching of irish as a spoken  language.  - modernise the curriculum to make it more accessible to  young people.  The implementation of these policies would significantly  improve the teaching of irish in our schools.  24. Arts and culture  The progressive democrats would aim to promote a number of  new initiatives in the area of arts and culture  • local authorities: each local authority would be required to  appoint an arts Officer and formulate and publish a five-year  plan for the promotion and Development of the arts in its area.  • community arts projects: there needs to be a greater emphasis  on community  Arts projects and a real effort to strengthen the links between  community Initiatives and the arts establishment. Our proposals  for reforming the national Lottery would make more money  available to this sector.  • arts in education: the arts still occupy a very peripheral  position within the Formal education system. Reform of the  curriculum is required so that our Children are more fully  exposed to a wide variety of cultural and artistic Experiences  during their school years.  • national heritage : our conservation bill, which we are  committed to enacting In government, will afford full legal  protection to sites of artistic, heritage and Historical interest.  • cultural centres : consideration will be given to employing tax  incentives To develop cultural quarters in some of the major  urban centres outside dublin.  Conscious of the huge contribution which artistic and cultural  activity now make to the economic life of the country the  progressive democrats will ensure that the arts council is  adequately funded.  The progressive democrats in government would move  immediately to put in place modern legislation to best protect  the indigenous broadcasting service and also to promote  independent television production and enhance consumer  choice.  The music industry  The progressive democrats will encourage the establishment of  a non-statutory voluntary body to co-ordinate the interests of the  music industry in ireland, and will grant that body recognition in  government and departmental planning.  25. The media  Media diversity  The progressive democrats believe that a healthy democracy  needs media that are vibrant and diverse.  Fostering a diverse and independent newspaper and news-  review market in ireland will be a major policy priority for the  progressive democrats.  While favouring price competition, the progressive democrats  are completely opposed to predatory price manipulation aimed  at the elimination of competition. General competition law  appears inadequate to protect irish newspapers from predatory  behaviour.  The progressive democrats regard an indigenous newspaper  industry as a vital national interest and will legislate to protect  that interest from predatory competition.  Broadcasting  The progressive democrats will review completely the outgoing  government's proposals in relation to broadcasting.  In doing so we will strive for simplicity and for a clearer  distinction between public service broadcasting and commercial  broadcasting. The progressive democrats welcome the new  diversity in radio broadcasting and will ensure that listener  choice and viewer choice are government priorities.  The progressive democrats will expedite the establishment of an  independent television channel.  In view of the imminent arrival of digital broadcasting, when up  to 200 television channels will be available, the progressive  democrats will entirely review the existing re-broadcasting  systems for making foreign television and radio signals  available throughout ireland.  We regard consumer choice and price competition as  fundamental values in broadcasting and will act accordingly.  Law of libel  The progressive democrats regard free inquiry and courageous  media as an essential safeguard for civil liberties and public  standards in any democratic society. At present, the defamation  laws are strongly stacked in favour of the wrongdoer.  The progressive democrats, as a central part of our participation  in government, will legislate to fundamentally reform the law of  libel. A defamation act will rebalance the public's right to know  and be informed in relation to public affairs by facilitating  investigative journalism and the free expression of honest  opinion.  Many of the recent scandals would not have taken place if the  media had been given more support in the past in confronting  serious issues of probity and accountability in irish life. On far  too many occasions, it fell to media from outside this state to  expose some of ireland's greatest scandals.  The progressive democrats will bring about the formation of a  press council to give private citizens out-of-court redress to  ensure that high standards in journalism are preserved at all  times.  The law of copyright  We will introduce a new copyright law to modernise and restate  the irish law of copyright.  26. The national lottery  The national lottery was originally designed to be a new source  of funding for projects in sport, the arts, culture and community  health: instead, it has been used almost exclusively to substitute  for exchequer financing.  There is also concern about the way in which lottery funds are  distributed. The whole process is subject to political control and  decisions are made by ministers on an entirely arbitrary basis:  - there is no organisation responsible for disbursing lottery  money  - there are no set application procedures and no set qualifying  criteria.  - there are no set criteria for qualifying for lottery grants.  The system lacks openness, transparency and accountability and  public confidence in it is low.  The progressive democrats propose the establishment of an  independent charitable trust to take control of the disbursement  of lottery funds. Members of the trust would be appointed by  the minister for finance from nominees put forward by sporting,  cultural and voluntary groups.  The trust would distribute the available surplus equally across  four designated areas:  Sport and youth  Arts and culture  National heritage  Voluntary groups.  It would lay down common procedures for grant applicants and  ensure that clear qualifying criteria had to be satisfied.  The new system would help ensure that lottery money was used  for the purposes originally intended and that grants were made  fairly, free of political favouritism.  Competition  The progressive democrats in government will modernise the  law governing lottery prize funds to ensure that private  charitable lotteries can compete on a more equitable basis with  the state lottery, which currently enjoys an effective monopoly.  27. Government reform  The progressive democrats propose a number of reforms to  improve our system of government and make it more  accountable to the people.  Oireachtas procedures: the procedures of the dáil and seanad  must be Modernised. It is particularly important that new  mechanisms are Introduced to enable issues of urgent public  importance to be raised and Debated in both houses.  Oireachtas committees: we will ensure that oireachtas  committees are given Greater powers of investigation so that  they are in a position to enquire fully Into any issues of public  importance which have been referred to them.  Cabinet confidentiality: the absolute ban on the disclosure of  any cabinet Discussions is not compatible with open  government. We will legislate to Ensure that this ban can be  lifted where disclosure is clearly in the public Interest.  tax clearance certificates: we will bring in a new law that will  require all Candidates standing for election to public office to  lodge tax-clearance Certificates with the returning officer.  Apathy and cynicism are the enemies of democracy. Public  confidence in the irish political system has been shaken by a  number of events in recent years: there is a duty on all  politicians to rebuild that confidence.  Constitutional reform  The progressive democrats will immediately re-establish an all-  party committee on The constitution to continue the work of the  committee which was established by twenty-seventh dáil.  We believe that the constitution is in need of significant review  and reform. The role of the president, the future of the seanad,  cabinet confidentiality, the status of women in the constitution,  and many other areas have already been the subject of  preliminary reports.  The progressive democrats are committed to proceeding with an  examination of the report of the whitaker constitutional review  group to ensure that our constitution is kept modern and robust.  Appendix  Budgetary strategy  1997-2002  1. The need for fiscal prudence  Prudent management of the public finances will be essential as  ireland moves towards european monetary union.  Ireland has managed so far to keep within the convergence  criteria laid down by the european union for membership of  emu. We will need to do much more, however, if the irish  economy is to prosper - rather than just survive - in a single  currency environment.  In particular, we must ensure that the irish economy is strong  enough to withstand any external shocks which may occur after  we join emu. The chance of such shocks occurring will be  especially high if, as seems likely, the uk is not among the first  wave of countries to join the new currency union. It is clear that  we cannot go into emu with the tax-and-spend philosophy of the  present government. Hard currencies leave no room for soft  options.  The progressive democrats believe that the next irish  government will have to satisfy four basic fiscal objectives over  its term of office:  (i) current budget surplus: maintain a surplus every year on the  government's Current expenditure budget.  (ii) exchequer surplus: achieve, before the end of its five-year  term, a surplus On the exchequer's overall spending position,  including expenditure on capital Programmes, so as to eliminate  the necessity for any further government Borrowing.  (iii) tax reductions: reduce the burden of taxation on enterprise  and Employment in order to maintain and enhance the  competitive position Of irish industry in international markets.  (iv) social spending: provide additional resources in the key  areas of Health, education, social welfare and crime control in  order to improve Social cohesion and protect the interests of the  more vulnerable sections Of irish society.  Cutting taxes does not mean cutting social services. Economic  growth means that we in ireland now have the resources to  reduce taxes and improve services. What is essential, however,  is that we keep the rate of growth in government expenditure  within reasonable limits: the key to tax reform is not cutting  public spending, but controlling it.  The progressive democrats set out here the budgetary strategy  which we intend to pursue over the next five years and the fiscal  targets which we would set for ourselves. We show how, with  prudent management of the public finances, we can improve  significantly our international competitive position without  compromising any of our existing social programmes.  2. Controlling public spending  The progressive democrats are committed to clear targets for the  control of public spending over the next five years.  We recognise that there will be strong upward pressure on  spending in 1998, the first year for which the incoming  administration will have full budgetary responsibility. This is  because of the commitments contained in the partnership 2000  programme - which the progressive democrats will honour - but  also because of spending splurge which the present government  entered into in the run-up to the general election.  We will aim, therefore, to reduce the rate of growth in current  government spending on a gradual basis over five years on the  following basis:  1998 +2.5%  1999 +2.0%  2000 +2.0%  2001 +1.5%  2002 +1.0%.  These targets are realistic provided the political will is there to  attain them. The targets can be met provided determined action  is taken on two fronts:  • unemployment: we must reform the welfare system to ensure  that rising Employment translates more readily into falling  unemployment. Despite the Economic boom we are still  spending £1bn a year on dole payments: that is More than we  spend on the police, the prisons, the courts and the defence  Forces put together.  • exchequer paybill: pay accounts for 40% of exchequer  spending. The New government must have the political courage  to halt the rate of growth In exchequer pay, which is now rising  at three times the rate of inflation. A Negotiated productivity  programme will give us a leaner but better-paid Public service,  with substantial savings to the exchequer as a result.  The next administration cannot afford to repeat the mistakes of  the current one. Under the rainbow coalition, current  government spending has risen by 20% in the last three years. In  other words, it now costs £50m a week more to run this country  than when the present government came to power at the end of  1994.  3. Spending priorities  Under the progressive democrats' budgetary proposals public  spending would rise by £1.7bn in real terms over the next five  years.  That is a very substantial commitment of extra resources and, in  applying those resources, we would give priority to the  following specific spending heads:  Primary education: increased investment in primary education  is essential If we are to adopt a long-term strategy towards  combating educational Disadvantage and the social exclusion  that results from it.  Pensioners: the real value of the old-age pension will be  increased at Every budget, with the aim of reaching a target  value of £100 per week By the year 2002.  People with disabilities: additional resources will be made  available To improve services for people with disabilities and to  increase their level Of participation in education, employment  and sport.  Child benefit: we recognise the importance of child benefit as a  direct State support to children and the family, and we will  ensure that annual Rate increases are above the rate of inflation.  Health services: extra spending will be targeted at reducing  waiting lists And improving facilities in the country's general  hospitals.  Policing: we will increase the resources available to the gardai  in the Fight against crime.  Prisons: we are prepared to put extra money into the prisons  budget To ensure that convicted criminals serve the full  sentence handed down By the courts.  Environment: our published proposals in the area of  environmental policy Will require extra spending, though some  of this will come from the Environmental taxation measures  which we have already announced.  Our expenditure plans allow for no increase in the value of  unemployment payments: rates will be adjusted in line with  inflation but will not be increased in real terms. Neither do we  propose any increase in the overall number of state departments,  state agencies or state bodies.  4. Taxation priorities  The progressive democrats detailed proposals for radical reform  of the irish tax system have already been published.  The principal features of our tax-reduction policies for the next  five years can be summarised as follows:  ¨ cut the basic rate of income tax from 26% to 20%  ¨ cut the higher rate of income tax from 48% to 40%  ¨ widen bands to take average earners out of higher-rate bracket  ¨ phase out employee prsi and levies  ¨ provide special tax breaks for old-age pensioners and  widows/widowers  ¨ reduce employer prsi to a single standard rate of 7%  ¨ remove the ceiling on employer prsi so that it is levied on all  earnings  ¨ reduce the standard rate of capital gains tax from 40% to 20%  ¨ reduce the standard rate of corporation tax from 36% to 25%  ¨ introduce a range of environmental taxes.  We are committed, beyond 2002, to the introduction of a single,  standard rate of corporation tax of 10% by the year 2010.  The proposed reductions in income tax rates - fourteen points in  five years - are very radical compared to the dismal record of  the present government. The rainbow only succeeded in taking a  penny off income tax in three years.  However, the attainability of these tax-cutting targets was amply  demonstrated the last time the progressive democrats were in  government: the coalition administration of 1989-92 cut  income-tax rates by thirteen points in just three budgets.  There is no reason why a radical transformation of the irish tax  system cannot be brought about in the very favourable  economic climate which now prevails.  5. Tax costings  Costings for the progressive democrats' tax-reform proposals are  based on figures supplied by the department of finance.  The proposals to reduce the standard rate of income tax to 20%,  the higher rate to 40%, and to keep the first £15,000 of income  (£30,000 for a married couple) within the standard rate band,  will cost £1,326m over five years, or £265m per year. This is  considerably less than the tax concessions promised in the  partnership 2000 programme of £300m for each of three years.  In his 1997 budget statement, the minister for finance, ruairi  quinn, referring to his own tax-reduction measures, stated: `the  cost of these income tax and prsi measures is £232m in 1997 or  £393m in a full year'.  As part of the progressive democrats proposals to bring down  the top rate of tax we will consider measures to reduce tax  breaks for high earners by restricting some of the existing  opportunities for tax avoidance.  On top of the income-tax reforms, the progressive democrats  will phase out employee prsi over five years at a cost of  approximately £90m per year. The employment and health  levies will also be phased out at a cost of £75m per year.  As part of the process of tax reform, the progressive democrats  will move to phase in tax credits instead of tax allowances. In  present-day terms, replacing existing allowances with credits  would benefit the exchequer by about £750m a year.  The progressive democrats propose to apply the benefit of tax  credits in two ways:  (i) to increase the value of basic personal tax credits, and  (ii) to reduce the cost to the exchequer of the overall programme  of tax reform.  By this means, the gross cost of our tax reform proposals would  be lessened by approximately £350m, or £70m per year.  The standard rate of employers' prsi will be reduced from 12%  to 7%, and the lower rate from 8.5% to 7%, at a gross annual  cost of £440m, or £88m per year. However, this gross cost will  be reduced by abolishing the present ceiling on employers' prsi,  with a net gain of £90m to the exchequer.  The changes necessary to bring corporation tax down to 25% by  2002, with a view to ultimately arriving at a 10% rate by 2010,  will cost approximately £40m a year in today's prices. However,  consideration will be given to distinguishing between passive  and earned income and to restricting capital allowances so as to  maximise the size of the corporation tax base.  All of the foregoing figures are in constant 1997 values.  The gross cost to the exchequer of the tax and prsi changes  proposed exaggerates the real impact on the public finances  since income relieved of taxation is spent on other tax-  producing purposes.  Revenue buoyancy through indirect and other taxes will recoup  a significant proportion of the gross cost to the exchequer,  especially since the progressive democrats' tax plan leaves the  indirect tax regime intact and since excise duties for some  products, particularly cigarettes, will be increased at more than  the rate of inflation.  The customary rate of revenue buoyancy is of the order of one  third, but the progressive democrats have adopted a more  conservative netting discount of 20%.  Some critics have argued that significant reductions in personal  tax rates could result in inflationary pressures on the economy;  but the progressive democrats' spending projections involve a  much tighter control of public spending than has happened in  recent years, at a time when inflation was between 1% and 2%.  The progressive democrats believe that the change outlined in  the taxation system will create the economic circumstances in  which there will be a significant rise in take-home pay without  pressure for gross pay increases.  Recent experience suggests that unless the taxation system is  significantly reformed to increase take-home pay, it will be  impossible to contain wage demands at or near the rate of  inflation.  6. Capital budgeting  The present government is endeavouring to borrow its way out  of a boom.  It makes no sense for a government to engage in heavy  borrowing at a time when the economy is growing rapidly and  when we are in receipt of substantial funds from the european  union to fund our infrastructural development.  Despite the booming economy and the buoyancy in tax  revenues, this government has still managed to borrow an extra  £1.5bn over the last three years, adding substantially to the  national debt in the process.  We should be aiming to eliminate exchequer borrowing over the  next five years. This can be achieved provided we are willing to  take a more sensible attitude towards the state's role in the  financing of capital projects.  The progressive democrats would identify three key areas in  which pressure on the capital budget can be reduced:  Private finance initiatives: private-sector funding of public  infrastructure Is now commonplace in most developed  countries. This strategy was strongly Advocated in a major  report from forfás last year. We believe there should be a much  greater role for the private sector in funding motorway  developments And major infrastructural projects such as the  proposed luas system.  Privatisation: there should be a pragmatic approach to the  privatisation of State assets. Companies such as acc, tsb, icc,  telecom éireann and Cablelink are all commercial organisations  which need access to capital if They are to develop to their full  potential. They belong in the private sector.  European funding: the progressive democrats will not put  substantial eu Funds at risk by introducing a `free water' policy  in direct contravention of European directives. We will also  ensure the maximum allocation for ireland In the next funding  round by adopting a regional approach, allowing the most  Disadvantaged areas of the country to retain objective one  status.  Private-sector involvement will mean that the state will not have  to fund every piece of infrastructural development: the new  severn bridge in britain was built entirely by private money at a  cost of £300m. Also, privatising state companies will mean that  the state will no longer be required to pump capital into them,  saving the exchequer hundreds of millions of pounds a year.  It should be possible, therefore, to maintain a strong programme  of infrastructural investment while significantly reducing the  need for exchequer borrowing to finance it.  7. Underestimating the irish economy  For the last five years the irish government has consistently  under-estimated the performance of the irish economy.  The net result is that tax revenues poured in which had not been  budgeted for. This had negative effects for both the economy  and the exchequer.  For the economy, it meant that tax cuts which were affordable  were not made. For the exchequer, it meant that expenditure  rose in a way which had not been planned at budget time. In  other words, as the unexpected money rolled in, spending  ministers dished it out.  Prudence usually takes the form of conservatism. In ireland over  the last five years it should have taken the form of optimism.  Effectively, the government took £1.3bn more than it intended  from ireland's taxpayers: instead of giving it back to them, it  decided to spend it.  If that money had been applied to tax reduction, it would have  allowed the basic rate of income tax to be brought down to 20%,  the higher rate to 40% and the rate of employees' prsi to 1%.  The experience of the last five years shows how vital it is that  we make realistic projections for the rate of growth in tax  revenue, and that those projections should be neither unduly  optimistic nor unduly pessimistic.  Irish tax revenues 1992-97:  Budget projections versus actual outturn  (£m)  Budget outtur underestimate  1993 9,485 9,704 219 1994 10,458 10,835 377  1995 11,196 11,335 139  1996 12,068 12,520 452  1997 13,263 13,440* 177*  1992-97 1,364  8. Budgetary assumptions  Our budgetary assumptions are based on the premise that the  irish economy will continue to grow over the next five years.  There are good grounds for making a positive assumption about  irish economic performance:  ¨ higher educational attainment  ¨ higher participation rates in the labour force  ¨ improving demographics and a falling dependency ratio  ¨ the prospect of lower interest rates as we approach emu.  The economic and social research institute took an optimistic  view of ireland's economic prospects in its recently published  medium-term review 1997-2003. The esri is predicting a  sustained period of growth over the next five years. Based on its  central forecast, the irish economy will grow by 26% in the  period from 1998 to 2002.  We have taken a somewhat more conservative view than the  esri and we have assumed that the rate of growth will be about  1% less than the institute forecast. We assume that the  underlying rate of growth in government tax revenue over the  next five years will be equal to gnp growth plus 1%.  We believe that our assumptions about the likely performance  of the irish economy are reasonable and that they provide a  sound basis on which to plan our fiscal strategy for the next five  years.