Labour leadership contender Joan Burton has signalled her intention to stay the course in Government with Fine Gael until the end of the Coalition’s mandate in 2016 if she becomes party leader.
As she declared her candidacy to replace Tánaiste Eamon Gilmore, Ms Burton sent a clear message to Fine Gael that Labour under her command would not seek to move away from a tough deficit-cutting target in the October budget.
While there has been concern at high levels in Fine Gael that Labour would not be able to agree the next budget if she prevails, Ms Burton made it clear she accepts the requirement to bring the deficit below 3 per cent of output next year.
“The 3 per cent target is a commitment that we have all agreed to. It remains an absolute objective,” she told reporters at Leinster House.
“We’ve already negotiated the three most difficult budgets. I don’t actually see why we will not be able to make sufficient progress in relation to the next two budgets.”
Such remarks came as Ms Burton, who is Minister for Social Protection, said Ireland had reached the limits of austerity and pledged to place an equal emphasis on “social repair” alongside economic repair.
Ms Burton remains the only declared candidate for the party leadership, but Minister of State for Health Alex White is likely to enter the contest.
Howlin stays out
While Ms Burton’s prospects improved last evening when Minister for Public Expenditure Brendan Howlin said he would not enter the race, speakers at a meeting of the Labour parliamentary party expressed their preference for a contest.
Mr White addressed the meeting, but did not say whether he would seek the leadership. While he denied any involvement in a plot to oust Mr Gilmore, he said he was ready to tell the Tánaiste he no longer had confidence in his leadership. Mr Howlin said he decided not to run “because I’ve gone twice before and I think we need a fresh election”. He said the gathering was “one of the most emotive and intensive meetings of the party I would have been at in 30 years”.
Ms Burton told reporters “there are no deals” with any party figures if she becomes leader. It is understood, however, she believes Mr Howlin should stay on in his current portfolio if she becomes leader.
Strong alignment
This is seen in Ms Burton’s camp as “the best outcome”. This would maintain his strong alignment with Minister for Finance Michael Noonan and demonstrate to Fine Gael that she is determined not to jeopardise the Coalition.
Keeping Mr Howlin in the Department of Public Expenditure would ensure he retains his seat at the Economic Management Council, the powerful Cabinet subcommittee at which the central thrust of fiscal policy is settled.
It has also been suggested that Ms Burton, who would replace Mr Gilmore on the EMC, would retain her portfolio.
It is understood Mr Howlin met Ms Burton in her ministerial office in Leinster House yesterday and that they also met on Tuesday. The meeting was the first since Labour incurred huge losses in the elections on Friday, which prompted Mr Gilmore’s resignation. Taoiseach Enda Kenny gave a strong hint there would be big ministerial changes in the reshuffle.
