The sale of State assets such as ESB and Aer Lingus, and more private investment form part of a Progressive Democrat plan to finance "the most ambitious public capital investment programme in the history of the state".
The General Election campaign moved up a gear today when the PDs were the first of the political parties to publish a manifesto for election 2002.
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Party leader, Ms Mary Harney today promised there would be no increase in direct taxation and current spending would not be financed by borrowing. However, money could be borrowed, within EU guidelines of 3 per cent of GDP, to pay for capital spending.
Speaking at the launch of the manifesto in Dublin this afternoon Ms Harney said: "We want to transform public services. We want to transform public infrastructure. And we are confident that we can do that without damaging the public finances and without pushing up taxes and driving thousands of people back into unemployment."
In an open letter to the electorate contained in their 90-page manifesto Ms Harney wrote: "We must make sure to continue with high employment and low tax, and avoid policies that would send us backwards. We must build on this foundation to deliver solutions for transport, education, strong regional development and technology. We must support our communities and tackle crime with a fair balance between rights and responsibilities."
The manifesto predicts average growth for 2003 - 2007 of five per cent and inflation running at three per cent with interest rates staying broadly unchanged. They say, however, that caution must be observed in light of the "uncertain international climate".
Reflecting the title of the manifesto, Value for Your Vote, the PDs say that if returned to government they will "seek maximum value for public expenditure and ensure that resources are converted into results". They say further tax reductions are possible but that their priority is "to invest in improving social services and increasing levels of social provision".
In order to address the State’s "infrastructural deficit" they promise to increase public spending by 8 per cent per annum - worth £14bn by 2007 - in line with their predictions of an 8 per cent increase in the tax take over the same period.
They say this will be used to invest in roads and railways, housing, and the health and educational systems. They have ruled out Labour’s plan to raid the coffers of the National Pension Fund to finance government spending saying the investment burden will be shifted towards the private sector.
The National Treasury Management Agency will be asked to manage a "National Transformation Fund" financed by the sale State assets; "windfall gains accruing to the Exchequer ... and other once-off items"; and the excess foreign reserves of the Central Bank.
ESB, Aer Lingus, Bord Gais and some of the larger commercial ports, such as Dublin, Cork and Waterford should be sold off, at least in part, to generate extra revenue, the PDs say. "We believe that the capacity is there to generate up to €6bn for the fund during the lifetime of the next government," the manifesto says.
Minimum social welfare payments of € 150 per week in 2002; increased child support payments; €200 per week for contributory pensions by 2007 and resources for community initiatives to combat poverty have been promised.
In the electorally critical area of health, the PDs continue the theme of private-sector-style reforms. "We are convinced that to try a ‘big bang’ approach to funding health service reform would most likely fail and end up in confusion for patients and health service staff alike".
They have targetted a 3-month hospital "treatment guarantee" as a key policy objective. They say if treatment cannot be secured in that time then the National Treatment Purchase Team will make arrangements for the treatment to be procured abroad. "Treating patients within three months will end waiting lists, as we have known them. It will deliver real results and practical fairness in the health system," they say.
On crime, the PDs promise "major reform of criminal law " including uniform sentencing guidelines. They have also promised more spaces for juvenile offenders.
"We believe that it is only through economic growth that we can deliver a more just society with a higher standard of living and the chance of a better quality of life for all our people," the PDs say.