Micheál Martin insists Government parties shouldn’t be ‘competing with each other’ amid tax-break row

The Fianna Fáil leader, Micheál Martin, was seeking to bring an end to a spat between the two traditional parties in Government over Fine Gael “kite-flying”.

It arose from the publication of an op-ed by three Fine Gael junior ministers in the Irish Independent on Monday this week.

In it, the trio called for a €1,000 personal tax reduction in Fianna Fáil minister Michael McGrath’s first Budget this October.

Mr McGrath’s party reacted with anger, with the minister himself saying he would “not be bullied” as he prepares his first package of measures.

Fine Gael has held the Finance portfolio for the past decade.

Today, Mr McGrath’s party leader was asked about the Coalition tensions.

“All three parties are in favour of reducing tax. This isn’t about parties competing with each other as to who’s the better at any given area,” Mr Martin said.

Can we put funding aside to make sure that capital projects that we are starting don't become casualties of a change in the economic cycle

The Programme for Government was the basis for the parties working together, he added, before going on to say that Fianna Fáil had always been about fairness.

Mr Martin listed areas of concern to his party, such as health and education, and said there would be a rental pillar to the Budget as well as packages in the areas of tax and social welfare.

The Coalition has so far targeted low-income workers in particular with benefits, he said, in the context of a very progressive tax system.

Asked about remarks at the Fine Gael parliamentary party meeting by former agriculture minister Michael Creed – in which he said no lectures would be accepted from Fianna Fáil as they were the party that crashed the economy – Mr Martin replied: “I think it's keeping you all entertained.”

He added: “What I would like to see, given all of these surpluses, is that we, as a country, look at this strategically. We do need more assets in terms of industrial development on the capital side.

“Can we put funding aside to make sure that capital projects that we are starting don't become casualties of a change in the economic cycle?

“That would make sure that the various big public transport projects that we’ve been starting get completed and don't get knocked off by challenges.

“I think we just need to plan in a sustainable way and in a way that can try and protect our prosperity and what we have for future generations.”

Mr Martin has said the intended reduction in taxation, and the precise manner in which it is done, should be “something for Government collectively to engage in”.

I'm conscious of people working in the disability sector, Section 39 agencies, who, because of national pay agreements, have fallen somewhat behind

He indicated other priorities for assistance, apart from the €1,000 cut for the “squeezed middle” urged by the three FG junior ministers — Martin Heydon, Jennifer Carroll MacNeill and Peter Burke.

“Apart from reducing taxation, which the three parties have committed to, and reducing the cost of public services and increasing expenditure in areas like childcare, we've made really appreciable gains,” Mr Martin said.

“We have opportunities now to do something very significant in that area (childcare), and in education and health, as well as disabilities.

“And I'm conscious of people working in the disability sector, Section 39 agencies, who, because of national pay agreements, have fallen somewhat behind.”

Richard Boyd Barrett of People Before Profit told the Dáil yesterday that the people talking about the “squeezed middle” were the very ones who had squeezed the middle.

Labour Party leader, Ivana Bacik, commented: “Certainly the kite-flying from ministers [in Fine Gael] has not been helpful.”