Politics

FG TDs ‘almost unanimous’ on abolition of USC

Social charge identified as first tax that should be cut as economy improved

Taoiseach Enda Kenny, Minister for Health Leo Varadkar at the Fine Gael think-in at Fota, Cork. Photograph: Barbara Lindberg
Taoiseach Enda Kenny, Minister for Health Leo Varadkar at the Fine Gael think-in at Fota, Cork. Photograph: Barbara Lindberg
Fiach Kelly
Sat Sept 13 2014 - 01:00

Fine Gael TDs and senators were "almost unanimous" at their parliamentary party think-in that the Universal Social Charge (USC) should be abolished.

During discussions on the budget and the economy, the USC was identified by deputies and senators as one of the first taxes that should be cut as the economy improves.

“It was brought in as an emergency tax, and should be one of the first things we look at in a recovery,” said Cork East TD Tom Barry, who spoke during the meetings.

There was acknowledgment among the parliamentary party that reducing the USC cannot be done in one go, but would have to take place over a number of years, Mr Barry added.

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Speaking at the conclusion of the two-day think-in at Fota Island in Cork, Taoiseach Enda Kenny repeated his position that tax cuts will take place over a number of budgets.

Tánaiste Joan Burton has identified reform of the USC as one of her priorities, but Mr Kenny said he and Ms Burton have already set out “the fact that as we prepare for budget 2015 and budgets subsequent to that, we would start the process of a reduction of the extent of tax of 52 per cent being paid by people”.

Mr Kenny said the budget discussions at the parliamentary party meeting “covered all of the areas here of income tax, of USC, of bands of credits, how the burden might be eased on taxpayers”.

“I set out on July 11th, with the Tánaiste, the will to do that over a period and over a number of budgets, starting in 2015. We haven’t decided on the detail of any of that, yet clearly that’s where our priority will be.”

Differences of opinion

Discussions also focused on planning for the next general election, and differences of opinion emerged about when Fine Gael should hold its selection conventions.

TDs and senators split into groups for the workshop discussions, with some groups suggesting the conventions should begin immediately to allow candidates establish themselves ahead of the general election, which Mr Kenny says will be held in the spring of 2016. However, others suggested they should not begin until next September. Fianna Fáil leader Michéal Martin has told his party that selection conventions must begin next month.

Mr Kenny said Fine Gael’s discussions yesterday focussed on ensuring the party meets the new gender quota rules which stipulate that at least 30 per cent of general election candidates must be women.

“We looked at the structures of the party, the question surrounding gender balance for candidates in the next election, how the use of various methods of communication can be adopted by the party,” Mr Kenny said.