PD concern for low paid `cynical'- Labour

The Labour Party has described as "hypocritical" the Government's declaration that the low paid will benefit from tax cuts in…

The Labour Party has described as "hypocritical" the Government's declaration that the low paid will benefit from tax cuts in the next Budget.

The Labour spokesperson on Enterprise, Trade and Employment, Mr Pat Rabbitte, dismissed as "hypocritical and deeply cynical" remarks by the Tanaiste and Progressive Democrat leader, Ms Harney.

"Mary Harney played a central role in designing the tax strategy pursued by this Government since 1997. The four Budgets introduced in that time have shamelessly concentrated tax cuts on the wealthiest in Irish society. Both income tax and capital taxes for the well off have been slashed while lowand middle-income earners have had to make do with the crumbs off the table," said Mr Rabbitte.

In the last Budget, he said, a single worker earning £11,000 a year gained £466, whereas a single worker on £35,000 gained £1,657.

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"The fact that people earning the minimum wage are still paying tax is a damning indictment of this Government's tax policy. Mary Harney's belated concern, so close to an election, won't fool low-paid workers. This Government has refused to target tax relief at the low paid in each and every Budget," he said.

The emphasis by the Tanaiste on tax cuts for the low paid is "clear evidence that the coalition parties are extremely nervous about defending their record at election time. Both Mary Harney and Charlie McCreevy have, in recent weeks, attempted to disown the very policies that they have spent four years implementing.

"There is no better indication that this Government knows that the electorate is waiting for them in the long grass," he said.

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times