Coveney supporters attack claims FG needs Dublin leader

Supporters of Simon Coveney are preparing to attack the claims of backers of Leo Varadkar, his main rival in the Fine Gael leadership race, that the party needs a Dublin-based leader for electoral success.

The Minister for Housing is a Cork South Central TD, while Mr Varadkar, the Minister for Social Protection, is a Deputy for Dublin West.

Supporters of Mr Varadkar have claimed Fine Gael needs a Dublin leader because of the large number of Dáil seats in the city and its commuter counties.

Taoiseach Enda Kenny this week signalled that a contest to succeed him as party leader will begin after the May Bank Holiday weekend.

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A source close to Mr Coveney said an emphasis on Mr Varadkar’s Dublin base “will unravel on closer inspection”. It is argued that even in last’s year’s disappointing general election Fine Gael did well in Dublin, and it is outside the capital where gains are needed.

"On a terrible day, with a 64-year-old leader from Mayo who had been in the job 14 years, Fine Gael still held an historically high number of Dublin seats," the source said. "The gains for Fine Gael next time round should be outside Dublin where Simon Coveney is well ahead."

It is argued a recent Irish Times/Ipsos MRBI poll shows Mr Coveney is ahead "in territories where we need to, and have much scope, to make gains".

It is also claimed Mr Coveney is "much more popular" with Fianna Fáil voters and will be able to attract transfers.

Last seats

“Leo Varadkar is clearly ahead with

Labour

[voters] and miles ahead, ironically, with Sinn Féin. I know which block of votes I’d prefer to be aligned with when it comes to winning last seats around the country.”

Meanwhile, Mr Varadkar is expected to signal a move away from his party’s signature policy of abolishing the Universal Social Charge (USC) as part of his pitch to succeed Mr Kenny. It is understood he will emphasise the need to reform income tax instead, in particular the need to raise the threshold at which people enter the higher rate of income tax. For a single person the higher rate of 40 per cent kicks in at €33,800.

Mr Varadkar’s move on tax follows a period where Mr Coveney’s campaign has been gaining momentum. Whereas previously Mr Varadkar was seen as the frontrunner by a distance, the race is now widely believed to be extremely tight.

Mr Varadkar will propose that USC be merged with PRSI to create a more contributory system for benefits. It is understood USC could still be reduced as part of this new system, but sources said he will instead emphasise Fine Gael taxation policy towards the point at which people enter the higher rate of income tax, and the rate of income tax.

Policy positions

The policy positions outlined by Fine Gael leadership candidates in the coming weeks are more likely to feed into the party’s next election manifesto than current Government policy.

Taxation policy at present is restricted because of the confidence and supply agreement between Fianna Fáil and Fine Gael. It pledges that at least two-thirds of any extra resources available in the annual budget should go on additional spending, with at most one-third devoted to tax cuts.