There wasn't a hair-shirt in sight as Michael Noonan offered the publica better quality of life under Fine Gael, writes Denis Coghlan.Chief Political Correspondent.
Michael Noonan tried to shift the political emphasis from the economic to the social yesterday when he launched Fine Gael's election manifesto in Dublin. But while the quality of life of citizens took centre stage, a bag full of goodies was provided to sweeten the message.
Just how Fine Gael would manage to cut taxes, increase capital spending dramatically and still not breach the government's obligations under the EU's Growth and Stability Pact was a mystery. But, in spite of mutterings of "voodoo economics" from the audience, Jim Mitchell insisted the figures had been approved by the Department of Finance.
It wasn't as simple as that. The costings approved by the Department and included by Fine Gael in its "Just Economics" document did not provide for changes in the existing tax regime. And Mr Mitchell promised radical change. Not only was a new 30 per cent tax band offered, along with housing reliefs, childcare benefits and the phasing out of individualisation, but tax bands and credits were to be index-linked.
Without tax buoyancy, and a ban on all taxation increases, where were extra government resources to come from? Savings and greater efficiencies in the public service? Mr Noonan didn't want to go there. That was Jim's territory. He limited himself to a promise to get the National Development Plan back on track. About one-quarter of the cost would be funded by current government budget surpluses; 25 per cent through Public-Private Partnerships; 17 per cent from the EU; and 33 per cent would be borrowed from the NTMA - dig at Fianna Fáil - "on the balance sheet".
The party's new idea was to revitalise the social partnership exercise through a profit-sharing scheme. First suggested by the ESRI as part of an anti-inflationary exercise, it would provide deferred benefits to workers when there was a current budget surplus above a certain level.
Just what level would be Mr Mitchell was unprepared to say. It would have to be discussed between the government and the social partners as part of a new pay agreement. And he held out the prospect of some gravy for the unemployed and pensioners by saying their position would also have to be considered.
Social partnership had proved its worth and Fine Gael wanted to see it continue. But profit-sharing would take place on a year-by-year basis, depending on the current budget surplus.
Mr Noonan's primary task was to package and sell a revamped version of the Just Society to the electorate. Fianna Fáil and the Progressive Democrats had squandered the boom and with their right-of-centre ideology they had begun the construction of a greedy, self-centred and uncaring society.
If a stop wasn't put to social drift in this election, it might be impossible to remedy the situation in 10 years, he warned. Fine Gael was offering a choice between two kinds of Ireland: one that was short-sighted and selfish and another that was compassionate and generous.
As part of a programme to end the two-tier health service, Fine Gael offered free GP services for those in full-time education, along with those under 18 and over 65 years. Tax relief would be provided for parents using childcare facilities. Tax individualisation would be phased out over three years. Young couples would be helped with housing. And the streets would be made safe again.
A 38-page manifesto, entitled "Towards a better quality of Life", provided Fine Gael's vision of a more caring future. But that will not be the end of the matter. Later the party will publish a detailed programme for government in order to focus on the failures and inadequacies of the Fianna Fáil/Progressive Democrats coalition in other areas of public life.
Fine Gael was rolling its sleeves up. And the first job was to get the economy back on track following profligate spending by the Government and its failure to secure value for money. Public spending was out of control and had to be reined in. Bad management had also ensured the next government would inherit substantial pay problems in the public sector.
Mr Noonan didn't flinch. At this point in the past, a Fine Gael leader would have started measuring the public for a very uncomfortable hair-shirt. But, with Mr Mitchell at his shoulder, Mr Noonan had found a second way: a resurgent economy would allow for increased spending and further tax cuts.