FG says McDowell 'in denial' over spending

A war of words between Fine Gael and the Minister for Justice showed no sign of abating today when the party said Mr McDowell was a "minister in denial" about the Government's economic record.

Last night, Mr McDowell responded to criticism by Fine Gael which published its pre-Budget submission on Sunday.

Responding to Fine Gael's condemnation of the Government's spending record, Mr McDowell told a Progressive Democrats' meeting in Cork: "Wages are up €10,000 and tax is down some €300 since the last budget of a Labour/Fine Gael government."

On Sunday, Fine Gael said in its Who Cares?document that millions of euros had been wasted since 1997 on poor management and the recruitment of administrative, rather than front-line staff.

Mr McDowell said: "The document conveys a clear message that much government spending is being wasted and implies that taxation is, therefore, too high. Yet nowhere does the document have the political honesty to assert straight out that spending is too high, or identify where spending could be cut."

Earlier the Taoiseach, Mr Ahern, said Fine Gael had produced "silly charts" claiming that that money had been squandered.

Commenting today on Mr McDowell's response Fine Gael's deputy leader and spokesman on finance, Mr Richard Bruton, said the Minister had "confirmed his worst fears about this Government's attitude to public spending.

"He is a Minister in denial. Huge sums of money have been spent which are not matched by improved services," Mr Bruton said in a statement. "He takes refuge in fabricating criticisms of Fine Gael. It is the classical tactic of diversion and smokescreen.

"Under this Government, tax as a proportion of national income has risen and the tax paid by the average family has increased by €9,000," he added.

Mr Bruton said Mr McDowell "seems to forget that workers have a life outside the workplace.

"They have to buy houses at prices bloated by Government interventions, drive cars that carry a €2,500 annual tax bill, educate their children, cope with illness, pay their household bills, all of which cost more because of stealth taxes from this Government."