Leadership wins heated debate on party's tax policies

TAXATION: THE SINN Féin leadership won a crucial debate among delegates about the party's current and future tax policies despite…

TAXATION:THE SINN Féin leadership won a crucial debate among delegates about the party's current and future tax policies despite the emergence of sharp differences.

The party's ardchomhairle produced a cautiously-worded motion on tax policies which said that taxes would be "increased only where demonstrably necessary. Tax rates should be decided on the basis of what is needed to meet social goals and other spending demands," the motion declared.

However, it met with considerable opposition from the floor, with many arguing, including Dublin South Central TD Aengus Ó Snodaigh, that it was too conservative.

He said Sinn Féin had developed in recent years "progressive and comprehensive policies" on health, education and other social issues. "Implementing those policies costs money, and the failure of FF and FG governments to provide world-class public services to address issues of unequal development and poverty and inequality is directly related to the low levels of taxation in this State.

READ MORE

"We believe that Sinn Féin does not have a credible tax policy. We are unable to explain how we would fund the kind of public services and government programmes contained.

"The ardchomhairle motion does not assist us in this task despite talking about redistributive tax. It does not propose sufficient changes to the status quo and the key challenges which face us - namely, increasing the overall tax take and redistributing from the middle and low-income earners to those who are most able.

"The ardchomhairle motion avoids difficult issues like corporation tax, capital gains tax and a third band for high earners.

"It seeks to preserve Sinn Féin as a party that would not raise taxes despite all our public policy proposals demanding that we must do so."

However, Newry delegate Niall Bradley said the leadership's motion was "the first sign of realism" about taxation that he has seen in Sinn Féin.

"What did voters do when they went into the ballot box? They did not vote for us because we were perceived as being unsafe on the economy. The purpose of a political party is to achieve political office. In Northern Ireland we are able to do things for the marginalised. Let's just wise up. If we think that we are just a political movement then let us continue for another 40 years without power."

James Monaghan, one of the Colombia Three, told delegates that they should not focus on tax rates above everything else in the economy. "An economy is about generating wealth. Taxation is about redistributing it. Don't mistake a taxation policy for an economic policy."

Calling for a clearer policy to raise taxes on high earners, Dún Laoghaire councillor Eoin Ó Brion said Ireland was one of the most unequal societies in the world, and Sinn Féin should explain why the total tax take must be increased, with the burden falling on higher earners.

However, Shannon Brooke Murphy from the party's policy development department said tax rates should be "set down on the basis of need".

"We do need to have the policy available to answer the question about how we should have the money available to pay for better services."

Cavan-Monaghan TD Caoimghín Ó Caolain rejected charges that the party's existing policies were vague, or that it had dithered on the issue in the last election.

"Make no mistake about this. Sinn Féin made no U-turns. What it did do was change the presentational emphasis. We never shirked our central point. Sinn Féin in government, if necessary, would raise taxes across a raft of different identifiable areas in order to deliver quality public services."

Dublin MEP Mary Lou McDonald said a debate about taxes "can't take place in the abstract".

"We are for first-class public services. They have to be paid for," she said.

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times