FF delegates agree to scrap USC if back in government

Fianna Fáil will eliminate the Universal Social Charge if it returns to power, the party's ardfheis has agreed.

The party said it will be the policy of a Fianna Fáil government to reduce the levy over time and for full abolition “subject to resources”.

Finance spokesman Michael McGrath and public expenditure spokesman Sean Fleming told delegates it would be a priority for the party.

Mr McGrath said: “I fully appreciate the pain that the Universal Social Charge represents for working families and the toll it takes on pay packets.

“The economy is recovering and people deserve a dividend from that recovery. I commit to this ardfheis that Fianna Fáil in government will reduce the burden of the universal social charge for all income tax payers in this country.

“In the longer term and I acknowledge it will take a number of years and a strong economy to achieve this, but as soon as the resources allow, it is the ambition of this party to remove the Universal Social Charge from our tax code altogether.”

The Fianna Fáil/Green Party coalition introduced the USC at the height of the financial crisis, with the levy coming into effect in January 2011.

The party also agreed to change the income tax bands to have a “fair taxation system” and to gradually restore the pay of public sector workers.

Mr Fleming said the country was not out of the woods and Fianna Fáil would not act irresponsibly and hand back billions.

But he said: “What we are saying is that the FEMPI (Financial Emergency Measures in the Public Interest) needs to be repealed on a gradual basis and to restore people’s net home pay.”

The party also debated the mortgage arrears problem and demanded cuts to the variable interest rates from the banks.

James Lawless, a councillor from Kildare County Council, said banks have been part of the problem and they now need to be part of the solution.

He said this wasn’t just about being socially responsible but was also about good business.

Minister of State at the Department of Finance Simon Harris said the financial proposals from the party made no sense.

He said: “Fianna Fáil are saying they want to reduce the USC yet they voted against our cuts to the USC in the last Budget. Fianna Fáil are saying they want to increase the minimum wage yet the reduced it. Same old Fianna Fáil.”

Mr McGrath also called for the Irish Fiscal Advisory Council to be given the powers to cost the various policies of political parties.

He said parties are at the mercy of the Department of Finance, Public Expenditure but it isn’t fair that civil servants are under the control of political masters.

The Cork TD said this was essential in the run up to the next general election.