Taoiseach Enda Kenny has said Fine Gael’s election manifesto, which he referred to as a “programme for Government”, will be independently costed.
His comments follow Fianna Fáil leader Micheál Martin’s pledge at the Opposition party’s weekend ardfheis to have manifesto commitments costed by an independent auditor and challenge to other parties to do the same.
Speaking after the publication of the Action Plan for Jobs 2016 in Oberstown, Naas, Co Kildare on Monday, Mr Kenny said Fine Gael proposed to phase out the Universal Social Charge (USC).
“And obviously the phasing out of USC is part of an overall taxation reform which will be spelt out in the Fine Gael programme for Government, which will be independently costed,” he said.
However, a Fine Gael spokesman later clarified that the party manifesto would be “independently costed” by the Department of Finance and the Department of Public Expenditure and Reform, “as it was in 2011”.
Asked about Mr Martin’s charge that the Government wanted a “coronation” rather than an election, Mr Kenny rejected his Opponent’s comments without responding directly to them.
“The election has not been called yet. It will be a general election. Politicians are but the servants of the people. That’s always been my experience since 1975 and that’ll be the experience again,” he said.
Mr Kenny said he never speculated about the outcome of elections.
He said the Government had reduced the two lower levels of USC in previous budgets.
“We have now taken 500,000 people out of a requirement to pay USC. The benefits have been capped at €70,000, which mean they’re focused directly on the lower, middle-income earners,” he said.
“I have said that if re-elected we would reduce USC by a further one per cent in 2017, which cost €250 million and leave sufficient fiscal space to do that.
“So we’re very clear on this in terms of phasing out of USC and capping its benefits and having it as part of an overall taxation reform.”
Minister for Jobs Richard Bruton, speaking at the same event, said the gradual phasing out of the USC was an important principle.
He said Minister for Finance Michael Noonan had made clear on numerous occasions that his ambition was to get the marginal tax rate below 50 per cent.
“USC is not like income tax, it doesn’t make capital allowances so it doesn’t provide for the sort of reinvestment that ought to be in a tax structure,” Mr Bruton said.
He said Mr Noonan had made it very clear that everyone would benefit from the changes he would make.
The benefits would be greater for those on lower and middle incomes, he added.
Fianna Fáil has said accountants PwC would conduct the audit on its policies and its assessment would be published with the party manifesto after the election is called.
The party also submitted all its policies to the Department of Finance last Friday to verify the accuracy of their costings.
