A time for responsibility, not risk – Fine Gael

On the eve of Budget 2019, Fine Gael has called out as reckless and irresponsible the tax, borrow and spend promises made by Sinn Féin, the Labour Party, the Social Democrats and the Green Party in their alternative budgets published last week.

Deputy Peter Burke, member of the Oireachtas Committees on Finance and Public Accounts said “There are now more people working than ever before in our history and we are approaching full employment. However that does not mean we should take good economic performance for granted, and imagine the economy will continue to perform well no matter what. Unfortunately that is what these parties all think, as they propose dozens of tax increases that are scant in detail, lack any rationale and would greatly undermine our economy in the months ahead.”

Fine Gael’s review of alternative budgets shows:

• Sinn Féin’s alternative budget proposes an astonishing €2.9 billion in tax hikes from over 20 separate tax increases.
• Labour’s alternative budget has over €1.6 billion in tax hikes, from 11 separate tax increases.
• The Social Democrats alternative budget has over €1.25 billion in tax hikes, from 14 separate tax increases.
• The Green Party’s alternative budget has a mind-blowing €3.5 billion in tax hikes, from 13 separate tax increases.

Deputy Colm Brophy, Chair of the Oireachtas Committee on Budgetary Oversight said “There’s no pot of gold here. Tax increases harm the economy, and the sheer volume of these proposed tax increases is deeply irresponsible. If they were implemented, economic confidence would collapse and this would put the livelihood of workers at risk. Furthermore, if these measures were all implemented together it is extremely unlikely that they would generate anything like the level of revenue described.

Responsible political parties must commit to balancing the books

Deputy Kate O’Connell, member of the Oireachtas Public Accounts Committee said “Anyone who has ever run a small business knows that when things are going well, you use the extra money coming in to pay off debts and prepare for future shocks – you don’t go out and borrow more to pay for day to day expense. Unfortunately Sinn Féin, the Labour Party and the Social Democrats are all proposing in their alternative budgets to borrow more in 2019; Sinn Féin by €300m, Labour by €770m, and the Social Democrats by €826m. This just shows a lack of common sense.”

Deputy Burke continued “The national debt works out at over €44,000 per person, which is one of the highest in the world. That is the legacy of the crash. Increasing this debt – at a time when the economy is going in the right direction – would be the wrong thing to do. We need all the responsible political parties in Dáil Éireann to step in line with Minister Donohoe’s commitment to a balanced budget for 2019 – the first since the crash – and moving to modest surpluses thereafter.”

Sinn Féin, Labour and the Social Democrats want to scrap the Rainy Day Fund

Concluding Deputy O’Connell said “Sinn Féin, the Labour Party and the Social Democrats are also proposing to scrap the Rainy Day Fund. There is major uncertainty on the horizon. Brexit will happen, and the global trade system is under threat. We now need to be putting money in a Rainy Day Fund, we need to be cutting back on our national debt and we need to be responsible in our management of the economy. That is the only way we can be sure that we will have the country has the resources to protect the most vulnerable, ensure we have good quality public services and solve the housing crisis. Unfortunately the Opposition don’t seem to get that and that is deeply worrying.”