The PD leader and Tanaiste has sharply disagreed with the reported extent of the tax relief planned by the Minister for Finance in the next budget.
In an interview yesterday on the RTE Radio programme, This Week, Ms Harney was asked for her reaction to a report in the Sunday Business Post that Mr McCreevy favoured tax cuts of "only" £350 million.
She replied that the State had a current budget surplus of about £1.7 billion. "That means we are either spending too little, or taxing too much. I take the view we are certainly taxing too much. And £350 million would not be a sufficient tax break. Last year, it was £581 million, and it was over £500 million in our first year in Government. The Progressive Democrats are a tax-cutting party."
Predicting that the Government would have "a radical tax package" by the next budget, Ms Harney said: "I have no doubt we will be able to negotiate that after the summer break when we begin the negotiations on the budget."
In addition to tax relief, she said, the party wanted to see some of the money going to increasing old-age pensions and child benefit.
Ms Harney said that the scale of tax evasion and business scandals was a surprise to her. "What I have uncovered through the inquiries I have initiated deeply shocked me. Many unsavoury events have come to light . . . Perhaps what is most surprising of all is that some people felt we should not rock the boat. It was a very rotten boat, and it is about time it was rocked.
"I am delighted now that these things are coming into the public domain, because they show that ordinary working people were paying penal levels of tax and others in our society, privileged people, were evading their responsibilities. In many cases, they were paying no tax at all."
Asked if it was a "done deal" that the new Attorney General and former PD TD, Mr Michael McDowell, would stand for the party at the next general election, she said he was just a week in the job. "I think all his focus is on doing that job and doing it well. I certainly have not discussed with him what, if any, future political plans he may have."
Pressed further, she said she would like him to stand. "Michael McDowell is an enormous asset to public life in Ireland. He was a huge loss from the Dail, and he was a huge loss from the PDs."
