Tánaiste Michael McDowell has accused Labour leader Pat Rabbitte of engaging in auction politics by proposing to cut the standard rate of income tax from 20 per cent to 18 per cent, but he accepted that there was nothing intrinsically wrong with the proposal.
At a press conference to announce the agenda for the national conference of the Progressive Democrats in Wexford this weekend, Mr McDowell said the Labour plan was difficult to reconcile with the policies it had adopted for the past 20 years.
"I always welcome converts to a reasonable way of looking at things, but it is quite sad that 20 years of policies have been put into the shredder by Pat Rabbitte's volte face. Why was he so wrong for so long?" asked Mr McDowell.
He said that as recently as four months ago at the annual economic workshop in Kenmare, Mr Rabbitte had argued strongly for the traditional Labour position on tax and has said that "we are likely to have reached the end of the major tax-cutting agenda".
Mr McDowell said the PDs were committed to financial prudence and, while the economy continued to grow there would be no budget deficits and, regardless of economic circumstances, the obligations under the EU growth and stability pact would be met.
The PD conference begins in Wexford tonight but the real business will begin tomorrow with debates on education followed by speeches from election candidates. There will be a question and answer session with the Tánaiste in the afternoon followed by an address by the founder of the Iona Institute, religious and social affairs commentator David Quinn.
There will be a discussion on sustainability and growth with guest speakers, including John Gilliland, the commissioner for sustainability in Northern Ireland, and the CEO of Airtricity, Eddie O'Connor.
One of the guest speakers in the health debate that follows will be Liam Doran, the general secretary of the Irish Nurses' Organisation, which has voted for industrial action next month.
On Sunday the party will be announcing some of its key policy positions for the election, which will include its tax policies.
