Download Moving Beyond GDP – Policy Implications

Seán Healy
Director, Social Justice Ireland
[email protected]
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Community is central to all social change and
progress
Community and voluntary sector makes huge
contribution across a wide range of arenas
Both community itself and the sector are
especially important in difficult times – and
these are very difficult times.
Both have not been treated well by policymakers particularly at national level.
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Multiple ‘hits’ in Budget 2012 in Budget 2011
and 2010 and 2009 etc.
Unemployment
Rural economies under threat
Poverty
Rural development
Inadequate rural transport
Threat to rural schools
Services being reduced or cost more
Fighting for survival
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Increased carbon levy
◦ Low income families and rural dwellers impacted
most by this tax.
◦ Government should use some of the money raised
by the carbon level to support these groups.
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VAT increase to 23%
Child Benefit cut
Rural Transport Programme cut
Funding for REPS cut
Reduction in public services
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Unemployment rate is14.1%.
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Long-term unemployment rate is 8.6%.
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Youth unemployment rate is 29.9%.
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Emigration has tripled since 2008
◦ Highest levels among those aged 15-44
◦ Over 40,000 Irish people emigrated in 2011
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Radical initiatives needed.
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Risk of poverty in rural Ireland is 7% higher
than urban areas (CSO 2010)
41% of farms generated an income of €6,500
of less in 2011.
In 2010 the number of farmers with work off
the farm fell by 32%.
Majority of farm families rely on income
support and payments from the state to
supplement their income.
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Rural
families have been hit in multiple ways:
◦Child benefit has been reduced;
◦Back to School Clothing and Footwear Scheme has been
reduced;
◦Primary school transport charge has been increased;
◦Public services are being reduced;
◦Charges are being introduced or increased for many
services;
◦VAT has been increased;
◦Unemployment remains at a critical level;
◦Carbon levy has been increased;
◦17 rural Garda stations have been closed;
◦Small rural schools are under threat.
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Small rural schools are under threat
due to the increase in pupil teacher
allocations.
◦ 100 posts will be lost in 2012 and a further
150 posts will be lost in 2013.
◦ Schools have had a 7% cut in their
capitation grants (to cover running costs)
since 2011.
◦ 47 rural co-ordinator posts removed from
rural DEIS schools in 2011.
◦ Rural DEIS schools will be further affected
by cuts in Budget 2012 currently under
review.
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In 2008, the sector had a value of €6.5bn,
received about €1.89bn in state funding and
employed 53,098 people (full-time equivalents).
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From 2008-2012, government spending on
current services fell 2.82%.
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Government funding for C&V sector fell by 35%
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C&V sector employment to fall to 36,638 by end
2015
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Rural communities are fighting for survival.
The quality of life for rural dwellers and the
sustainability of our rural communities is under
threat.
Long-term strategies on infrastructure
development, the national spatial imbalance, local
access to public services, public transport and local
involvement in core decision-making are urgently
required so that rural communities can survive.
Rural communities must be given the opportunity
to become involved in the decision-making process
through deliberative democracy.
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Growth is good in itself
Economic growth will trickle down
EU style services with US tax levels
Growing poverty/inequality doesn’t matter
Low tax is good
Reducing tax rates increases tax-take
Local community is not a priority
Involving local people is just a pain
Ireland has a lot to teach the world on
economics!
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Failure to:
 Broaden the tax base
 Promote tax equity
 Regulate banks
 Overcome infrastructure deficiencies
 Adequately address high energy costs
 Address high Local Authority business
charges
 Promote competition in sheltered sectors
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“Without a vision the people perish”
Ireland should be guided by the core values of:
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Human dignity
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Sustainability
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Equality and human rights
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The common Good.
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A just society is one where
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human rights are respected,
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human dignity is protected,
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human development is facilitated and
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the environment is respected and protected.
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Put balanced development at the core of
decision-making in all policy arenas
Diversify rural economies
Tackle long-term unemployment
Focus on Rural development (as distinct from
agricultural development)
Involve people through a process of
deliberative democracy
Support the Community and Voluntary Sector
ACT ACT ACT
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Agriculture, forestry and fishing account for only
82,500 people classified as employed (CSO).
Farming accounts for just one quarter of rural labour
force.
Rural communities need opportunities and support to
develop an economy where sustainable agriculture is
supported in conjunction with much needed
alternatives.
Government policies must also support rural
entrepreneurs and small rural firms to create jobs.
Access to sustainable, integrated transport and reliable
high-speed broadband must be given priority.
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Part-Time Job Opportunities programme
◦ Would create 100,000 part-time jobs for long-term
unemployed;
◦ Paid the going hourly rate;
◦ Voluntary;
◦ Participants work the number of hours to earn their social
welfare payment and a small top-up;
◦ Jobs in the public sector and community and voluntary
sector;
◦ Participants would be allowed to take up other paid
employment in their spare time without losing benefits and
liable to tax in the normal way.
◦ Piloted 1994, mainstreamed 1997.
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3 priorities of rural development in Ireland:
o Improve the competitiveness of the agriculture sector.
o Improve the environment and the countryside.
o Improve the quality of live in rural areas and encourage
diversification of economic activity. (CAP Rural Development
Programme 2007-2013)
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Rural development is NOT agricultural
development.
Rural development is about improving the
quality of life for rural dwellers and
supporting sustainable rural communities.
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The main issues identified with
contributing to rural deprivation and
depopulation:
◦ Access to secure and meaningful employment;
◦ Availability of public transport
◦ Access to quality, affordable childcare
◦ Lack of public services of scale and quality
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These areas must be given priority
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◦ A process for engaging all
stakeholders
◦ Discussing evidence
◦ Without power differentials in play
◦ The Council of Europe’s new Charter
on Shared Social Responsibility
◦ Agreed: November 2011
◦ Government currently planning
alignment of local government and
local development – should use this
process as its basic building block.
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Must get away from voodoo economics
Ireland needs a national debate on its future –
both local and national - and the
development of an effective strategy for
moving forward.
An effective strategy requires:
◦ An accurate analysis of the present situation
◦ A vision that will inspire and guide policy towards
building a society that is just and fair for all; and
◦ Realistic policies to move Ireland towards such a
future
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“The future of humanity lies in the
hands of those who are strong
enough to provide coming
generations with reasons for living
and hoping”
- Gaudium et Spes
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