Sinn Féin: Sinn Féin clarified its position on corporate tax yesterday as national chairwoman Mary Lou McDonald said there was no proposal for a 17.5 per cent rate in the party's election manifesto.
The principal reason advanced by Fianna Fáil for refusing to enter coalition with Sinn Féin has been their economic policies.
In an interview last December with The Irish Times, Minister for Foreign Affairs Dermot Ahern rejected Government partnership with Sinn Féin, citing its economic policies, particularly its support for the 17.5 per cent rate - which is five percentage points higher than the current rate.
Ireland's low rate of corporate tax is seen as a cornerstone of its economic success and Fianna Fáil has cast doubt on the ability of other parties to resist EU pressure for tax harmonisation at a higher rate. There are also demands in the context of powersharing in the North for the lower rate to be applied.
Speaking at a news conference in Dublin to launch the party's policy document, Workers' Rights for an Ireland of Equals, Ms McDonald said there was "an awful lot of nonsense and hype" about Sinn Féin's economic policy. The party's position was "very sensible, grounded and fair". Asked if the 17.5 per cent rate was still Sinn Féin policy, Ms McDonald said, "The 17.5 per cent is not in our manifesto".
Commenting on Taoiseach Bertie Ahern's statements that Sinn Féin would not be an acceptable coalition partner due to its economic policy, Ms McDonald said: "We now have an electoral contest and the people in their very great wisdom will cast their votes and they will decide the composition and the balance of forces in the next Dáil."
"We are more than capable and ready to be in government in the South." But she added: "There are bottom lines for us in terms of whether we would consider entering a governmental arrangement or not."
