Fine Gael to oppose further tax increases

FINE GAEL has ruled out any increases in taxation to deal with the State’s public finances. Party spokesman on enterprise Leo Varadkar told the Dáil last night his party would oppose any further increases in the overall burden of taxation.

“Taxes will destroy the recovery in the same way that the Lenihan VAT, excise and income levies deepened the recession after the emergency budget of April 2009,” he said.

Mr Varadkar was introducing his party’s Private Member’s Financial Emergency Measures in the Public Interest Bill 2010 to reduce Government charges to give businesses, consumers and the economy a boost.

“We estimate that this Bill, if made law, will save the average household €400 per year, and it will reduce considerably the cost of doing business for struggling small and medium-sized industries.”

Mr Varadkar predicted that his party would part ways with the Government at the next budget in December.

“We will not support a further €1 billion reduction in capital spending. That is spending earmarked for new schools, new hospitals, new roads, railways, water and waste services.”

Borrowing for capital investment was justified, said Mr Varadkar, adding that future generations would benefit from current capital investment.

He said the Fine Gael Bill did not create a charge for the Exchequer, but it did require all Ministers to present to the Dáil within four weeks a plan to reduce by 5 per cent all fees and charges set by them.

Minister of State for Enterprise Dara Calleary said the Bill appeared to have a laudable purpose – to reduce the burden of cost on consumers and industry.

He said if services were to be protected the cutting of public fees and charges across the board would invariably lead to either an increase in direct taxation or reductions in expenditure over and above the savings already identified.

He said the Government had its own plan to improve the efficiency of State services. The Fine Gael Bill would completely undermine the long-established and carefully developed systems of independent regulation in the State.