Proposals such as a major increase in capital gains tax will not be popular with the private sector. However, the party will win plaudits from the private sector for the direct way it has presented its spending, writes John McManus
Labour has now set out in greater detail how it plans to fund its spending plans. Some of the measures it proposes as underpinning annual increases in public spending of 10 per cent will be unpalatable to business and prospective partners in Government.
But all of the initiatives came with the rider from the party leader, Mr Ruairí Quinn, that if somebody else comes up with alternative sources of funds the party would look at them.
One idea that will almost certainly have to be explored for alternatives is the plan, announced yesterday, to almost double capital gains tax by taxing capital gains as income tax.
Labour has linked the €350 million raised through this tax hike to what is on balance a pro-business initiative - taking everybody on the minimum wage out of the tax net.
But it will not go down well with the private sector that takes much credit for the recent economic success. Ostensibly, the decision to cut capital gains tax was taken by the outgoing Finance Minister, Mr McCreevy, to reward and encourage these risk takers. A similar hard sell is being attempted by Labour on the proposed increase in employers' contributions to the social welfare fund. The €200 million that would be raised is targeted at childcare, which Mr Quinn claims is a major driver of wage inflation.
IBEC and other representatives of business will no doubt make their views on these initiatives - and the proposed two extra bank holidays - clear. Similarly the other parties will characterise them and the proposed Public Enterprise Management Agency as representing the anti-business side of left-wing politics.
Labour can certainly argue that the current way in which the commercial State companies are run by Government is far from efficient.
A reduction in the extent to which politicians of the day can directly interfere in the running of such companies would be welcomed by most people involved in managing them.
But the decision to create what is in effect a massive State-owned industrial holding company is not without risk. This style of conglomerate has experienced mixed fortunes in the private sector.
Those that have succeeded, such as General Electric, have done so only under strong and what some might consider ruthless management.
The limitations already put on the proposed new agency all but rule that out. It will not be allowed sell more than 49 per cent of any business it owns, and then only with the approval of the Government and the Oireachtas.
Where Labour will win plaudits from the business community is in the direct way in which it has presented its public spending forecasts and the borrowing that will be required.
Following the collapse of Enron, the sort of off-balance sheet accounting that Fianna Fáil unveiled yesterday is viewed with suspicion by many.