FF, Labour economic row continues

The row between Fianna Fáil and Labour over economic policy and electoral prospects continued today when the Minister for Enterprise…

The row between Fianna Fáil and Labour over economic policy and electoral prospects continued today when the Minister for Enterprise Batt O’Keeffe contended that Labour leader Eamon Gilmore did not have the “bottle” to implement hard decisions.

In ongoing reaction, to Mr Gilmore's interview with The Irish Times this week, the Labour leader said the quality of criticism from Fianna Fáil of his claim that his party could win up to 50 seats, reinforced his view that it could be done.

Mr O’Keeffe asserted today that Mr Gilmore had continued to take a populist line, a strategy which he argued could be “very dangerous”.

“It raises the question, when it comes to a hard decision, does he have the bottle?” said Mr O’Keeffe.

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“I equate Eamon Gilmore to the ditch-hugger, grabbing both sides and hanging on for dear life and making sure that he does not take any decision,” he added.

For his part, Mr Gilmore said that the only thing that could restore consumer confidence was an immediate change of government.

“I think one of the things that has contributed to the decline in consumer confidence in this country has been the Government’s mismanagement of the economy.”

Mr Gilmore dismissed criticism by Fianna Fáil TD Niall Collins that Labour’s hopes of winning a seat in all 43 constituencies was a fantasy. He said the level of Mr Collins concern “kind of proves our point that we are in the business of winning a seat in each constituency,” he said.

“I think that the framework of the next election is already set out and is a three way contest. For the first time in the history of this State there is a prospect of a Labour-led Government being elected at the next election.

“That’s what my objective is, that’s what my party’s objective is and we’re going to remain focussed on that irrespective of what anybody else is doing.”

Mr O’Keeffe said that none of the 40 policy documents produced by Labour were properly costed and a lot were out of date.

He claimed Mr Gimore had failed to say how he was going to widen the tax base and raise revenue.

He also dismisses the proposition put forward by Labour that scrapping property and pension reliefs could yield €800 million.

“The fact of the matter is there is no pot of gold out there in terms of abolition of reliefs.

“The proposals of the Commission of Taxation relating to reliefs showed they would yield no more than €300 million.

Mr O’Keeffe also said that most of the reliefs still in operation benefited ordinary taxpayers. They reliefs were for child benefit, mortgage interest and health insurance.

“Mr Gilmore really needs to be honest and tell people: Am I in government going to remove those reliefs for ordinary people?” said Mr O’Keeffe.