The Labour Party has rejected Fianna Fail criticism of its new economic policy, which advocates fewer tax cuts and a £3 billion increase in public spending.
The Labour spokesman on finance, Mr Derek McDowell, yesterday accused Fianna Fail of distorting and misrepresenting the plan, saying it was afraid of the new budgetary proposals and of a debate about what kind of society Ireland should become over the next decade.
"They are politically bankrupt. Their adherence to the Saatchi and Saatchi school of political scaremongering remains absolute," Mr McDowell said.
The Minister for Social, Community and Family Affairs, Mr Ahern, yesterday condemned Labour's new plan, claiming it would fuel inflation and spell disaster for middle to low-income earners.
In its document New Direction, New Priorities, Labour proposes shifting emphasis from tax cuts to increased spending on improving services.
Mr McDowell yesterday rejected Mr Ahern's claim that the plan had 10 basic flaws. He said the reality was that low and middle-income taxpayers continued to require tax relief promised in the Labour documents because Fianna Fail had ignored them.
"In short, over the last three years the Minister for Finance has ensured that the benefits of our booming economy have gone to the better off."