Fine Gael Promises Fairness

Raising the quality of life in an Ireland that is compassionate, fair and even-handed to all, was the message of the Fine Gael…

Raising the quality of life in an Ireland that is compassionate, fair and even-handed to all, was the message of the Fine Gael leader, Mr Michael Noonan, when he published his party's election manifesto in Dublin yesterday.

But the manner in which his party will set about achieving this result, through tax reductions and accelerated capital spending, is certain to cause unease. The costings of some of the commitments made do not appear to be included in final figures. And the range of tax concessions promised is considerably in excess of that offered by other parties.

At a time when the Organisation for Economic Cooperation and Development (OECD) has been critical of the Coalition Government for the sudden shift from surplus to deficit in the public finances, Fine Gael appears determined to continue with policies that increase public spending and reduce tax charges.

Concessions offered by Fine Gael target young married couples and low and middle-income workers in particular. Individualisation is to be phased out over three years and special help will be provided for young couples in securing new homes and childcare. A new 30 per cent tax band will be introduced to favour middle income workers. And 100,000 people on the minimum wage will not only be removed from the income tax net but will be given tax rebates, back-dated to last January.

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This approach by Fine Gael was, in the words of Mr Noonan, designed to redress the socially-destructive policies of Fianna Fail and the Progressive Democrats. The Coalition Government had not only squandered the boom, he said, but had favoured the rich and powerful in the hope that a trickle down effect would solve all of our problems. That had not happened and Fine Gael was now putting forward policies based on a sense of community where the potential of every citizen could be realised.

Better education facilities and access for all was a key element in the Fine Gael manifesto. Reducing levels of illiteracy and providing affordable childcare was given prominence, along with better health care and the creation of improved transport systems. Agriculture was to be supported and the environment was to be protected through improved waste treatment and recycling. Perhaps the most innovative idea involved the creation of a national profit sharing scheme which would encourage trade unions and employers to negotiate a new Social Partnership agreement with the government. Rather than underpin an agreement with tax cuts, the Government would introduce a profit-sharing scheme for all tax-payers, provided the current budget surplus exceeded a certain level. The funds would be invested for five years before release, as a means of calming inflation. And the terms would have to be negotiated between the social partners. The details of this and other financial proposals will, no doubt, be teased out in the coming weeks as the need for fiscal prudence is emphasised.