Sir, – Simon Foy (Letters,4 January 4th) quotes Leo Varadkar's observation that Fine Gael needs to guard against a serious party emerging on its right. Mr Foy's letter is headed "What does Fine Gael stand for?". That question was exercising my mind even before the party's very poor performance in the 2020 general election. And my opinion, for what it's worth, is that Fine Gael had lost its way before Leo Varadkar became its leader.
I believe the water charges debacle was a self-inflicted electoral disaster for Fine Gael. About two-thirds of homes had paid their water charges and it is reasonable to suggest that Fine Gael’s core supporters were a disproportionately large part of that compliant population. The hard-left was vocal in opposition and they were eventually joined by Sinn Féin (when that party was outflanked by Paul Murphy) and, to their eternal shame, by Fianna Fáil. The lead party in government is always looking for the right issue on which to face the electorate. The water charges were an electoral gift to Fine Gael – and the party threw it away.
In abolishing water charges it left disenchanted its own supporters and others who might have been minded to support it. They saw the climb-down on water charges as just another example of the political centre kowtowing to the left which was never going to reward that subservience. And, of course, Fine Gael supporters who received their refunds were well aware that, through the old reliable “general taxation”, they would end up paying water charges both for themselves and for those who want to pay for nothing.
In short, Fine Gael’s surrender on water charges lost it credibility with its own supporters and was never going to garner the support of those who were vocal in opposition to the charges. I am no politician but this seemed to me to be crazy politics.
Another example of Fine Gael ignoring its support base was provided by its approach to reversing the tax increases introduced in 2010 by the Fianna Fáil-led government to keep the country afloat. The better-off among our citizens paid the bulk of the additional tax through increased income tax rates and the introduction of the USC – and that is as it should be.
It fell to Fine Gael to decide how tax cuts should be distributed when the public finances allowed. I have a clear memory of Enda Kenny and Michael Noonan patting themselves on the back for having found a way – the introduction of yet higher USC charges on higher earners – to ensure that those who had borne the burden when taxes had to be increased would not see a corresponding reduction as income-tax rates were reduced.
These two examples pre-date Leo Varadkar’s tenure as taoiseach and Paschal Donohoe’s as Minister for Finance. But my general observation continues to be valid. Over several years before Covid hit, tax windfalls were blown on current expenditures which will not easily be reversed when the next downturn comes. Mr Donohoe did use the cover of Brexit finally to introduce a sensible Budget 2020. But that was too little too late – Fine Gael’s traditional and hard-earned reputation for fiscal prudence had long since flown.
The country needs a pro-business and pro-taxpayer advocate at the table. If Fine Gael does not reassume that role, it can surely be only a matter of time before a newly formed party of the centre-right steals its clothes – and its votes. – Yours, etc,
PAT O’BRIEN,
Rathmines,
Dublin 6.