Elements of the Fine Gael/Labour Party economic programme, published yesterday, are refreshingly different from Government policy and offer voters a real choice. We can expect a full and vigorous debate of their merits and drawbacks during the coming weeks.
The parties have broken new ground by agreeing to a range of income tax and stamp duty reforms in advance of a general election. In doing so, they are appealing to specific interest groups - young and single-income families - while reassuring the electorate of their ability to work together within a framework of prudent economic management.
With at least five weeks to go to the election, the battle for the hearts and minds of the public has intensified, and significant differences are emerging between competing economic programmes. Fine Gael and the Labour Party have concentrated on improving the position of stay-at-home wives; increasing the carers' allowance; indexing personal credits and reducing stamp duty on homes for those families who trade up or down. They offer a 2 per cent cut in the standard rate of income tax, but do not join with Fianna Fáil and the Progressive Democrats in proposing a change in the top rate.
Rightly, Fine Gael and the Labour Party have identified fiscal responsibility and prudent management of the economy as a key component of the forthcoming campaign. They are not ceding this high ground to Fianna Fáil and the Progressive Democrats. They envisage a slightly lower rate of growth than the Government and intend to retain much of existing economic policy: expenditure levels under the National Development Plan, corporation tax levels and borrowing limits imposed by the EU Growth and Stability Pact. They say that increased competitiveness will be sought through new training programmes, investment in research and development and a reduction in red tape for companies.
Better public services are envisaged, with additional money being devoted to health and policing services. Car taxes will be based on emission levels and excise duty on biofuels will be abolished. Broadband services will be extended. And regulators of the energy and telecoms sectors will be given greater powers.
Differences between Fine Gael and the Labour Party on the timing of promised stamp duty changes have been finessed by way of a commitment to implement reforms as a priority measure in government, based on conditions in the housing market and budgetary considerations at the time. The uncertainty inherent in that undertaking is exposing it to a full-blooded assault from the Government. Do these conditions exist now? The key question is whether this position is responsible politics or a fudge?
Fianna Fáil nerves were evident yesterday in its decision to run a "spoiler" on the launching of the economic programme by listing and costing Opposition promises made over the last five years. It was an interesting side-show, intended to manipulate the media, and we can expect much more of that in the coming weeks.