A FIANNA Fail led government will have approximately £1.8 billion to spend on tax cuts between now and the year 2002, the party leader, Mr Bertie Ahern, said at the launch of the party's election manifesto.
Tax cuts, a strong economy, a revived peace process, an upgraded health service, a drive against crime as well as urban and rural development were all part of the package unveiled yesterday at the National Gallery, Dublin. Married people who stay at home to care for their children will be able to avail of tax relief under Mr Ahern's government while similar benefits will be provided to all parents for childcare costs.
Mr Ahern said expenditure between now and 2002 would increase in the region of £3 billion; half of that would go on inflation and about £300 million would go on Public Service increments and other matters. That would leave £1.2 billion to deal with "the items in that manifesto, apart from tax".
Revenue, according to the ESRI, is expected to rise by 7 per cent between now and 2002, a figure that should increase income to the State by £2.6 billion. All going as projected, there would be "somewhere in the order of £1.8 billion" available for tax cuts.
"On that basis you could practically do all the things we have mentioned in our programme go to 43 per cent [upper tax rate], widen the bands to 80 per cent; go to 20 per cent [lower tax rate]. I do not want to say we can do it all; I'm saying we can go very close to it," he added. An introductory tax rate of 20 per cent will apply on the first £2,000 of taxable income for a single person and £4,000 for a married couple.
Asked if he would be restoring contact between government officials and Sinn Fein if he is returned to power, Mr Ahern said he "hoped" they would meet through "a third party or officially" to discuss an IRA ceasefire only.
Mr Ahern said he would meet Senator George Mitchell, chairman of the talks, shortly.
According to Mr Ahern, an examination of all the files concerning the case of the late Mrs Brigid McCole will take place under a government led by him. While he did not know what that examination would reveal, he said he expected to find that the Health Minister, Mr Noonan, was not the only one involved.
"We will publish that [examination] immediately. We have given that clear, unambiguous commitment.
Meanwhile, he confirmed he would be telling his supporters to transfer to the Progressive Democrats.
Disagreeing with suggestions that abortion would be an election issue, Mr Ahern said the medical, ethical and legal reports he commissioned had been completed and given to him in the previous 24 hours. He had not gone through them in detail.
But, in government, Fianna Fail would live up to the commitment he had given that the issue would be dealt with. It was not tenable to ignore the Supreme Case decision in the X case.
There were "various options". He would take the party's expert group's report and, in government, prepare a Green Paper on the issue "to get a greater consensus on the hostilities that this issue has created over the years". This Green Paper would form the basis of all their discussions and the All Party Constitutional Review Group would deal with it.
Promising stability in a new coalition arrangement, Mr Ahern said he had a record of creating cohesion through his involvement in creating social partnerships. He had, on three occasions, brought diverse groups such as unions and farmers together.