Election 2024

More spending, tax cuts as Fianna Fáil publishes first manifesto of election campaign

Party pledges to cut taxes by reducing lower rate of USC to 1.5 per cent and increase entry point to high rate of tax to ‘at least €50,000′

Fianna Fáil leader Micheál Martin with candidates at the launch the party's general election manifesto at the Smock Alley Theatre in Dublin, ahead of the general election on November 29th. Photograph: Niall Carson/PA Wire
Fianna Fáil leader Micheál Martin with candidates at the launch the party's general election manifesto at the Smock Alley Theatre in Dublin, ahead of the general election on November 29th. Photograph: Niall Carson/PA Wire
Pat Leahy
Mon Nov 11 2024 - 19:29

Tax cuts and spending increases, more homebuilding and more gardaí, as well as a new government department to manage migration and security were among the main elements of the Fianna Fáil manifesto launched on Monday in Dublin.

The party said it would fund a reduced 9 per cent VAT rate on energy bills, guaranteed for at least the next five years; increase the State pension to at least €350 per week; extend free GP cards to all under-12s; build 60,000 new homes per year by 2030; set up a new transport police unit; reduce class sizes; and expand access to primary care with an extra 1,500 GPs.

The manifesto pledges to cut taxes by reducing the lower rate of universal social charge (USC) to 1.5 per cent, increase the entry point to the high rate of tax to “at least €50,000″, increase tax credits by €100 annually, abolish the 3 per cent USC surcharge for self-employed people paid more than €100,000 a year and consider changes to capital gains tax and inheritance tax.

It says it will keep VAT on gas and electricity bills at 9 per cent, though the outgoing Government has committed to increasing them to 13.5 per cent next May. It also promises measures to reduce energy costs, strengthen consumer rights, reduce the cost of the weekly shop and drive down insurance costs.

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On housing, the party says it will increase construction to 60,000 units a year by 2030, using the Apple tax windfall for once-off strategic investment in the Land Development Agency, and also for the electricity grid, water and transport.

It will also allocate €2 billion from the Apple fund for the digitalisation of health records. The manifesto also promises shorter waiting lists in hospitals, more beds and smaller classes.

It promises to decriminalise the possession of drugs for personal use.

The party also says it will tighten asylum procedures in a number of respects, but also says it is “committed to broadening the legal pathways for skilled migrants to come to Ireland”.

Fianna Fáil is the first party to publish its full manifesto at the beginning of the first week of campaigning before the November 29th polling day.

Launching the 200-page document, Tánaiste and party leader Micheál Martin said Fianna Fáil would “never claim to have got everything right, but we did secure real progress for our country”, pointing to the half a million increase in the number of people at work since 2020.

The manifesto promises to grow spending by more than 33 per cent over the lifetime of the next government, and to run surpluses every year while continuing to divert money into the savings funds.

Mr Martin acknowledged that the current spending rule of keeping spending growth to under 5 per cent – which has been ignored by the current Government in each of its budgets – would be revised and relaxed, meaning that current spending would grow by at least 6 per cent per year until 2030, bringing it from €90 billion this year to more than €121 billion by 2030.

“It’s a new government, so we’re putting forward a new financial framework,” he said.

Asked where would his budgetary priorities lie in the event of a decline in corporation tax revenues caused by change in policy in the United States, or some other economic shock, Mr Martin said: “In the event of any downturn we would obviously want to protect public services as our number one priority.”

He said that he would want to protect capital projects by using the money in the savings funds.

Pat Leahy

Pat Leahy

Pat Leahy is Political Editor of The Irish Times