The Taoiseach, Mr Ahern, has promised the electorate a continuation of peace, prosperity and progress if Fianna Fáil is returned to government after the general election.
Unveiling his party's manifesto in Dublin yesterday, he invoked the record of the past five years, involving falling unemployment, reduced tax rates and higher investment in services, as the foundation for future expectations. The big idea of the manifesto involved the establishment of a National Development Finance Agency (NDFA) that will raise money for transport, schools and health facilities through bond issues and public-private partnerships, rather than through direct Government borrowing. The NDFA will ensure value for money on major capital projects; will operate under the aegis of the National Treasury Management Agency (NTMA) and report to the Minister for Finance, Mr McCreevy.
There is an element of smoke and mirrors about this method of raising capital for large Government projects and designating the money as bonds, rather than borrowing. Disguising borrowing in this way did the State no service in the past. But this initiative, along with a decision to establish a Commission on Financial Management and Control Systems in the Health Services may yet provide a future government with mechanisms whereby spending projects can be delayed, should that prove to be necessary. The NDFA will require detailed legislation to become operational, which will push its commencement towards the end of the year. And the requirement to ensure value for money may lead to the reassessment of existing road, health and other projects under the National Development Plan.
Considerable similarities exist between the manifestos published by Fianna Fail and the Progressive Democrats. But that is to be expected, given the parties have served for five years in government and been involved in policy formation. They both acknowledge the need for a new national development agency but differ on the means of funding, with Fianna Fail opting for the sale of bonds and the Progressive Democrats for the disposal of State companies.. They are also committed to keeping the general government surplus at or close to balance, under the EU's Growth and Stability Pact. And they promise no increase in direct taxes.