Fine Gael has ruled out increasing income or corporate tax, or introducing property or wealth taxes, and says the Labour Party also agrees that direct taxation should be kept low.
At the end of the party's two-day parliamentary party meeting in Portlaoise yesterday, deputy leader and finance spokesman Richard Bruton rejected claims from Government parties that a Fine Gael/Labour government would put up taxes.
Speaking for Fine Gael, he said: "We will not increase income taxes. We will not increase the corporate rate of tax which was introduced by Ruairí Quinn as minister for finance."
He said they would not increase direct taxes. Asked if he also included taxes such as wealth tax or property tax, he replied: "We include all those taxes. We do not believe that the issue is to raise extra taxation. The issue is to use resources effectively. We will be reviewing areas of taxation to see where there are elements of the tax code which are ineffective, that are hampering progress, that are putting excessive burdens on people . . .
"But at the heart of our tax policy will be keeping Ireland competitive, keeping direct income tax rates low - whether it be on individuals or corporations - and indeed the leader of the Labour Party has made it clear that it is his view also that we need to adopt that approach."
Mr Bruton said this was no surprise because a Labour minister for finance, Ruairí Quinn, had been "the minister who introduced and pioneered the idea of having a low, single rate of corporate tax which has been the key to our economic success".
His comments came the day after Minister for Justice Michael McDowell claimed that if Fine Gael and Labour were elected to Government, Labour would ensure taxation was increased.
Mr McDowell had claimed Labour leader Mr Rabbitte had himself spoken in favour of a wealth or property tax in an interview 2½ years ago.
A Labour spokesman said yesterday that Mr Rabbitte had clarified his remarks the day after that interview, and had said he favoured ensuring wealthy people were taxed fairly.
In relation to the party's tax policy generally, he said: "The position is that the Minister will have to wait like everybody else to see what is in the Labour Party's manifesto which we will put out in our own good time, not at the Minister's bidding." He added that Labour had argued for some time that the situation should be ended where the income of wealthy people was sometimes not taxed at all.
Fine Gael leader Enda Kenny said: "The very fact that Government Ministers are commenting on how Fine Gael are doing in the polls shows something between anxiety and electoral terror, because they know the people are waiting for them." He rejected Fianna Fáil/PD claims that it was their policies which had led to the country's economic success.
"Our benchmark is the Rainbow Government of 1994 to 1997, which had the lowest inflation rate, the highest growth rate, the job performance of 1,000 a week, and handed over the economy in a very fine state to the incoming Government. For Fianna Fáil Ministers to go around the country proclaiming that they have been responsible for the Celtic Tiger and the great boom of Ireland is a myth, because it was built on the backs of the workers of Ireland."
On Mr McDowell's advice Fine Gael should not rule out the PDs as a coalition partner, he said: "I think it is sad to see . . . Michael McDowell hawking his party around the country . . . I have made it clear that they are among our targets and we are focused on building our alliance with the Labour party and getting on with the business."