LABOUR PARTY:LABOUR LEADER Eamon Gilmore yesterday warned of the dangers of a single-party government and said the only way to achieve a balanced and stable government was by Labour participation in a coalition arrangement with Fine Gael.
The incoming government was inheriting such a serious economic and financial crisis that it was important it represented a broad span of viewpoints, Mr Gilmore said.
“There are two possible outcomes to the election next week – a single-party government led by Fine Gael or a coalition government between Fine Gael and Labour and it’s our view that we need a balanced, fair and stable government.
“We don’t believe that a monopoly of power should be given to one party and the only way we are going to achieve a government that satisfies the criteria of being balanced, fair and stable is if Labour is part of that government and part of it in strength of numbers.”
Mr Gilmore acknowledged the latest opinion polls were suggesting there was “a very real possibility or threat or risk that there may be a single-party Fine Gael government” but said with 25 to 30 per cent of voters still undecided, the outcome was still all to play for.
Asked about the viability of a minority Fine Gael government backed by a number of independents, Mr Gilmore said that he didn’t believe such a government would last 12 months whereas he was confident a Fine Gael-Labour coalition would last a full five years.
Mr Gilmore acknowledged that there had been robust exchanges between Fine Gael and Labour over the past week but he said he still believed that it was possible for both parties to agree a programme of government.
“There are considerable areas where we are in broad agreement, for example our objectives in relation to health and to the reform of the political system – there are areas of some difference between us and they have been highlighted in the course of the week.
“But it is the negotiation of those differences that provide for the balance in government and this is the point I’m making . . . I don’t think it’s desirable that we end up with a government where one point of view on this issue prevails, a winner-takes-all government.”
Mr Gilmore was speaking at Cork County Hall where he joined with the party’s spokesman on local government and the environment, Cork South Central TD Ciarán Lynch, to launch the party’s plan for distressed mortgages and household debt.
Mr Lynch said that there were almost 50,000 homeowners in three-month arrears in their mortgage payments.
He said the Labour Party plan would involve a two-year moratorium on all house repossessions so as to give people some space to get back on their feet financially.
The plan would also involve the conversion of the Money and Advice Budgeting Service (Mabs), which costs €18 million a year to run, into the Personal Debt Management Agency set up on a statutory basis at an annual running cost of €24 million.
The plan would also involve making greater use of mortgage interest supplements to support home owners who cannot meet mortgage payments.
Labour says this would be cheaper for the State than if they lost their homes and were paid rent supplements.
Mr Lynch said 2009 figures showed the average mortgage interest supplement payment was €4,097 per claimant household whereas the average rent supplement payment was €5,490 per claimant household.
Given that just over €500 million was paid in rent supplement payments last year, the Labour plan would effect savings of at least 10 per cent, Mr Lynch said.