FF, FG clash over cost of economic policies

Fianna Fáil and Fine Gael had angry exchanges today over their economic policies and budget costings as the campaign entered its third week.

Speaking at a Fianna Fáil media briefing this morning, Minister for Finance Brian Cowen accused Fine Gael and Labour, in their manifesto proposals, of "busting their framework", and he said they were involved in a political "con job" in the run-up to the election.

Fine Gael retorted that Mr Cowen's attack was "laughable" and "a desperate, baseless attack on Fine Gael and Labour's rock solid budgetary and spending framework".

Rejecting the Fine Gael/Labour plans as a "pig in a poke", Mr Cowen said they would result in a budget deficit by "year two" and a rising debt burden over five years.

"They are busting their own framework. And they either have to bust their framework or bust their promises but they can't do it both ways," he said.

The Minister said the proposals set out by Fine Gael and Labour would result in a "less competitive country, a country that will not achieve the growth rates it requires in order to continue with the enormous improvements we've seen.

"We won't have a sustainable budgetary position because our budgets will be going into deficit. You cannot have in a plan set out an unenumerated, unspecified, total hock of €2.9 billion and go around the country in the first two weeks of this campaign and between the two of them promise €5.7 billion and tell me that the €2.8 billion doesn't matter if you are going to balance your budget," Mr Cowen said.

"If you couldn't put it in on day one, you can't put it in on day 10 or day 21 or the first thing after you are elected."

Mr Cowen denied the accusation was "scare tactics" as a response to Fianna Fáil's drop in recent polls. He said the Fine Gael/Labour costings did not "stack up".

However, Mr Cowen confirmed, when asked, that the numbers provided by Fianna Fáil this morning outlining the Labour/Fine Gael spending proposals had been costed by his own party rather than taken directly from the two opposition parties.

He insisted the figures were correct, however.

It was put to Mr Cowen that, since Fianna Fáil would, to form a government, have to go into power with another party, it would also be forced to "bust" its own figures.

"Let's be clear about this. I am conducting this campaign on the basis of our budget framework. The others are not. They are involved in a politically dishonest campaign. . . . People know what they vote for when they vote for Fianna Fáil. They know precisely what they are voting for. Mr Rabbitte and Mr Kenny, individually and collectively, are doing a con job.

In often tetchy exchanges with a number of economic journalists, Mr Cowen repeatedly insisted Fianna Fáil's economic proposals "stand up to scrutiny".

Mr Cowen said Fianna Fáil had an "excellent" government with the Progressive Democrats over 10 years and he was looking "to see that Government re-elected".

Responding to Mr Cowen's comments, Fine Gael's deputy leader and finance spokesman Richard Bruton said: "Minister Cowen's latest, desperate attack is simply laughable. His claims don't even stand up to the most basic scrutiny.

"Unless Mr Cowen is predicting an outright majority for Fianna Fáil - a long shot by any stretch of the imagination - he must now answer the following questions:

If back in government with the Progressive Democrats, how will he pay for the entirety of their €6.8 billion tax package? If instead he intends to form a government with Sinn Féin, a more likely scenario than one with the PDs, how will he pay for all of their spending proposals?

"The Minister can't answer these questions, but we don't expect that to stop him from his desperate fear-mongering. With nothing positive to offer the electorate, this laughable attack is apparently all he has left," Mr Bruton said.

With regard to the Taoiseach's finances and his statement yesterday on issues surrounding his home in Drumcondra, Mr Cowen said the Taoiseach had "acted in good faith at all times" in relation to those matters.

The Labour Party's finance spokeswoman Joan Burton said her own party and Fine Gael have set out an agreed economic framework based on data from the Department of Finance and the ERSI.

"This is just another in a long line of bogus economic attacks on the economic plans of Labour and Fine Gael.  As we reminded people last week, during Ruairi Quinn's tenure in office, economic growth was higher and inflation was lower than under either Brian Cowen or Charlie McCreevy," Ms Burton said.

"We are the only two parties to have agreed such a framework.  Fianna Fáil and the PDs have no such agreement. Indeed, they can't even agree on a macroeconomic forecast for the next five years - Fianna Fáil is expecting 4.5 per cent growth while the PDs have hung their enormous tax giveaways on a growth rate of 5 per cent.

"In addition to our agreed commitments on health, policing and taxation, Fine Gael and Labour have set out an envelope of resources to meet strategic priorities.

"We are two separate parties, campaigning on our own agendas.  After the election, we will negotiate a comprehensive programme for Government within the agreed economic and budgetary framework.  The fact that we have agreed programmes in respect of the economy, health and policing demonstrates our capacity to reach common ground on policy issues."