Taoiseach defends €4bn in tax cuts and spending plans

Taoiseach Bertie Ahern has defended his decision to pledge €4 billion worth of tax cuts, along with major spending plans, in …

Taoiseach Bertie Ahern has defended his decision to pledge €4 billion worth of tax cuts, along with major spending plans, in his Fianna Fáil ardfheis speech.

Dismissing criticism in the Dáil yesterday by the leader of the Labour Party, Pat Rabbitte, Mr Ahern said Fianna Fáil had declared "that if the economy remains strong, we will cut taxes".

Meanwhile, he shrugged off Mr Rabbitte's attempts to highlight the embarrassment suffered by Minister for Social Affairs Seamus Brennan, who last Tuesday insisted that Fianna Fáil would not match Opposition election promises.

Mr Brennan, who returned to Ireland last night after a short holiday, has remained silent since the ardfheis speech despite numerous requests for an interview.

READ MORE

The Minister, said Mr Rabbitte, had last Tuesday been "a pale shadow of himself, so shocked was he at the policy platform put forward" by the Opposition, and had been "aghast" at what would happen to the country.

"I saw Deputy Mulcahy [Dublin South Central] on the screen before my eyes on Saturday night applauding like Mr Bean on speed.

"I wish to ask the Taoiseach about the impact on the Minister, Deputy Brennan, of the Niagara of promises the Taoiseach unleashed on his unsuspecting Cabinet on Saturday night.

"There were 53 different commitments, amounting to €300 million per minute. We are fortunate the Taoiseach only had half an hour. What would be the position if he had a full hour?" he said to Opposition cheers.

Replying to demands from Mr Rabbitte for a full costing of the tax cuts and spending programme, Mr Ahern said Fianna Fáil would be publishing full details well before the election.

"We will give item by item costings in respect of everything contained in our tax package which remains well within the parameters of what we announced in each budget in the past six or seven years."

Speaking in Cork, Minister for Enterprise, Trade and Employment Micheal Martin defended the Taoiseach's decision to unveil the planks of Fianna Fáil's election campaign at Saturday's ardfheis.

"In terms of the Taoiseach's speech, it's up to any party leader to make the call as to when you announce your platform for the next five years. The Taoiseach made the call to do that Saturday night.

"With up to two months or more to go to the election depending on the Taoiseach, it really isn't that big an issue as to when each political party rolls out particular aspects of their platform, and I think there's a bit too much being made of it.

"The programme is well within the parameters of what was achieved over the last five years in terms of pensions and tax, and I think the PRSI cut was a new initiative which will be good for employment.

"Certainly in terms of the self-employed, it helps us in terms of the small and medium-size business sector, and overall the reduction in PRSI and income tax will help maintain Ireland's tax position as one of the most pro-jobs tax systems in the world."

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times