CORI challenges Government to reveal privatisation plans

CORI Justice challenges Government in social partnership talks on privatisation of services.

Government's proposed reduction in tax revenue suggests that resources will not be available to provide core services.

CORI Justice has challenged Government to reveal whether or not it plans to privatise large swathes of public services. Speaking after social partnership talks between the Government and the Community and Voluntary Pillar of Social Partners today Dr Seán Healy, S.M.A., Director of CORI Justice, stated that "A close examination of the Budget documentation shows that Government plans to balance its books while reducing tax revenue far below the EU average. If Government follows through on this then the only way that circle can be squared is by privatising large parts of the services currently provided in areas such as education or health. CORI Justice believes that such a move would have huge negative implications for fairness and for the vulnerable in Irish society."

Fr Healy went on to state that "Before the current crisis the Government's annual Budget raised about 27% of GDP in tax. Government's latest projections on tax revenue show it intends to raise 22.3% of GDP through the Budget in 2011. A fairer tax system is required which sees the tax-base broadened and tax-breaks removed. This would see total tax revenue remaining below the EU average level but rising to a level required to fund key services. However, the level of reduction envisaged in the Budget projections for the coming years is such that large parts of services currently provided by the Exchequer could not be funded and, consequently, would! have to be privatised. Is this what Government is planning?"

CORI Justice called on Government to clarify its vision for where it sees Ireland in five years time and whether or not privatisation of substantial parts of the social services funded by the Exchequer form part of that vision. If privatisation of major services is not planned then CORI Justice calls on Government to state how it will secure the revenue needed to fund these services in the years ahead.

"Government has constantly stated that it will protect the vulnerable while addressing the series of crises Ireland is currently facing. However, its own Budget documentation calls this commitment into serious question" according to Fr Healy.

Fr Seán Healy, Director of CORI Justice went on to state that, “As we approach the 10th anniversary of Minister Mary Harney's contrasting of Boston and Berlin, and the social models they epitomised, we find ourselves in a situation where the US is moving away from the Boston model while Ireland is moving towards it.”