PDs dismiss accusation of currency policy split

THE Progressive Democrats have dismissed the Taoiseach's latest claim that there are divisions between them and Fianna Fail.

THE Progressive Democrats have dismissed the Taoiseach's latest claim that there are divisions between them and Fianna Fail.

Mr Bruton told a rally in Mallow, Co Cork, yesterday that the two parties cannot agree on currency and interest rate policy. Their differences on the issue meant it would be "a disaster for anybody with a mortgage if Fianna Fail and the Progressive Democrats got back into office".

Fianna Fail wanted to join the single European currency at the first opportunity regardless of what Britain does, he maintained while the Progressive Democrats do not.

The Democratic Left leader Mr De Rossa, also continued the Rainbow attack on the opposition. He called on Fianna Fail to make clear if it supported PD proposals to freeze unemployment payments in real terms, and for less regulation in the workplace.

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The Progressive Democrats' finance spokesman, Mr Michael McDowell, accused the Taoiseach of grossly distorting his party's position.

"We are completely committed to EMU, we have a working assumption that Ireland should be in the first group to join, but you can't sign a blank cheque and commit yourself totally to it in advance of knowing what the conditions will be at the time."

Mr Bruton said that Fine Gael the Labour Party and Democratic Left were united about how we should manage our currency.

"We agree that Ireland should go into the European Monetary System next year whether Britain goes in or stays out." That agreement was the reason for the present low interest rates, he said.

"The last time there were problems with the currency was when Fianna Fail and the Progressive Democrats were in office, and interest rates on mortgages were twice as high as they are today," he went on. This was because there was confusion over currency policy.

"Interest rates shot through the roof to 14 per cent, as against seven per cent today. There will be a repeat performance if those parties get back into office, because they don't agree on how the currency should be managed," he said.

He also accused Fianna Fail of believing they were entitled to get back into government because it was their turn.

"They've been out now for 2 1/2 years and they think that's long enough. It doesn't really matter what they're going, to do, what they are going to say."

. The Fianna Fail chief whip, Mr Dermot Ahern, claimed that yesterday's meeting between Mr Bruton and Mr Spring at the Rock of Cashel was a sign of government disarray and a last-ditch attempt to heal their gulf on the peace process.

He added: "This is also the second meeting between Bruton and Spring in days without the presence of Proinsias De Rossa. It is now clear that Mr De Rossa is out of the loop and that, given his erratic behaviour during this campaign, that his two colleagues wish to keep him on the margins.

"The Left in Democratic Left obviously means being left out."