Indo’s tax war hides an FG flip flop

According to the Iris Independent Labour and Fine Gael are at war regarding their policies on tax. Wars are usually events where medals are handed out to those who show bravery and initiative. The indo was the paper that famously gutted the Rainbow on polling day in 1997 when everyone wrongly assumed that there was a total moratorium on election coverage with it infamous “Payback” headline and editorial that swung the election for Fianna Fail and the PD’s.
That election was decided on the debate between the McCreevy argument for reducing taxes and the more progressive Rainbow case to widen bands and take those on lower income out of the higher tax rate. Bruton and Spring argued that equity and the need for those on higher incomes to make a greater contribution required those on higher incomes to pay more as oppose to the simplistic FF & PD plan to cut everyone’s tax bill. It was slam dunk when the Indo group annoyed at what they saw as Alan Dukes’ prevarication at handing out licenses for terrestrial re-broadcsting to the INM backed the opposition to get its way.

Irony of ironies, 13 years on. Alan Dukes is now winding down the banking poster boy of the Bertie Ahern era Anglo, and there is another debate on taxes, this time FG are reluctant to cut taxes for the rich and want those on low income to pay more tax, an approach that brings it closer to Fianna Fail than it has ever been before while Labour sticks consistently to the line that those on high incomes must make an equal contribution.
And the Irish Indo true to form presents the different budget approaches between 2 different parties as a war. This is a nonsense and trivialises what are fundamentally more significant differences and camouflages a sharp change of direction on Fine Gael’s part. Once more at a crucial stage in Irish politics the indo misrepresents events. What the war between Labour and Fine Gael is about is who will lead the next government rather than what its tax policy will be. There are lots of differences between FG & Labour. The headline implicitly suggests that Fianna Fail is by some reckoning a major player in events. In fact they’re not and won’t be, period.


The real debate is an intellectual one as to what will be the choice that voters will have at the 2011 General Election. You can have a Labour led government whose policies will be fiscally Kenysian with a stimulus package while at the same time tackling the burden left by the Greens and Fianna Fail by negotiation with the EU & ECB or you can have one that will be Fine Gael led that will be effectively neo-liberal that will cut spending in line with Fianna Fail policy and while will re-negotiate with EU & ECB will do so from the point of front loading the pain.
There are 3 effective choices in play; Labour and Fine Gael where a deal is done although Fine Gael say that €6B in cuts are their minimum so that option seems now to be harder to achieve. There’s the second option of Labour SF and the independents and Uncle Tom Cobley! Not very stable and no chance of a majority in the Seanad and won’t last a week. There is the final irony and perhaps the option that may Fine Gael may be considering now. A neutered and significantly smaller Fianna Fail propping them up either in or out of office in a reverse Tallaght Strategy! If Dukes can a generation on repeat his gesture at Anglo could Fianna Fail repay FG by minority support after the 2011 GE?
The more I hear of Fine Gael and the more Enda Kenny is being hidden from the public the more I think this option may be now going up the FG agenda although they may not admit it for obvious reasons since FF are toxic.
From my own point of view that’s their business, either GE 2011 will see the end of FF as a part of government for many years or the consigning of civil war politics to the bin. Either would be a good thing. Fianna Fail only want to be in power and will subvert anything to achieve that end. So I’ll live with FG & FF cosying up to one another. Jose Murinho described a recent punishment as a medal and recognition of what he does and how well he does it, Labour may well be on their way to ending up with the medals after the election but that won’t that revive our country if they are shut out of office.

No text’s please we’re Irish

It’s still over a week to St Patrick’s Day but Wexford will be green this week end as it hosts the Annual Convention of the Green Party. B &B’s, Hotels, restaurants and bars will be packed out as John Gormley leads his troops to the banks of the Slaney to reflect on what has been a torrid time for the party. While the party appears to fluctuate in polls close to where they scored at the ‘07 GE, there can be little doubt for Green members that the honeymoon is well and truly over. Wexford has been carefully picked, it’s a number one target seat for the party having been beaten for the last seat on the Borough Council in’04 by just one vote after 2 recounts and 3 days of counting. Moreover the Department of Environment will decentralise to the town in 2009 and Minister Gormley will become a regular feature around the town. They’ve a lot going for them but at the back of it all there’s a real doubt that the Greens can make that gain now. Nothing personal against the candidate, he’s a decent and honourable guy, but as people say to me they cannot wait to get the Greens or FF on the doorstep. In the words of one local FF councillor in this weeks paper “We’re going to be slaughtered”.

Let’s quote the appropriately named Green Day’s “Time of your life” So make the best of this test and don't ask why. It's not a question but a lesson learned in time. John Gormley may well find time to reflect on this at his National Convention. Last year’s conference highlight was his calculated snub to the Chinese Ambassador over Tibet, now he’s gone from hero to zero. Having avoided tackling Ahern over his contradictory tribunal testimony, looked the other way as they did u-turns on education cuts and made complete fools of themselves apologising or cutting OAP’s medical cards, all the party is left with is a tax on text which they claim will raise €1.2 B. More like a tax on pocket money! The party’s solution to the economic crisis is; get the finger out!
But its not as though the party hasn’t form in crazy ideas, can you remember the plan for driving licenses to go the church if you lived in the country or the plan to ban patios. The main topic for debate isn’t driving licenses or patios but a motion from Paul Gogarty TD to have a motion next year debating whether to stay in government or not. Recently I understand Mr Gogarty was at a public meeting where when FG Senator Frances Fitzgerald was speaking he rolled on the floor! Deputy Gogarty was the man who ate humble pie over his opposition to education cuts and emailed a constituent to tell them his party were going to leave government. I have my doubts as to whether Deputy Gogarty is cut out for politics. Clearly his Hot Press interview reveals some tensions in the party and it’ll be interesting to see what happens but at the end of the day its not hugely relevant, the real damage has been done already for June. The transfers that previously came their way from FG, Labour and SF will dry up leaving the Greens high and dry unless the ever-decreasing number of FF voters give them their last transfer.
That’s their lot, as Green Day say in “Time of Your Life” :- Tattoos of memories and dead skin on trial. Guilty as charged!

Public Service Strike against pension levy shuts service’s in Wexford

Today’s day of action sees public servants on the picket line in protest against the government decision to impose a pension levy. As can be seen from the picture, Wexford’s government buildings at Anne St were picketed by members of the CPSU today. CPSU members are mostly clerical and administrative grades. Many of the union members are female. As well as in the civil service their members are also in the post office and eircom. Interestingly the members employed in commercial companies are not liable for the pensions levy. The vote in favour of strike action was pretty substantial on a high poll. Anne St provides social welfare, revenue as well as probationary services for Co. Wexford. Elsewhere locally pickets have been placed on the offices of the Department of Social, Family & Community Affairs at Roches Rd and at Johnstown Castle. Many of the workers striking today earn less than €30,000 and one woman explained to me that she's be better off on social welfare rather than working in soical welfare.
The Deputy General Secretary of the union Eoin Ronayne acknowledges the hardship faced by private sector workers and rising unemployment, but says the union must defend its members through industrial action - if necessary. Mr Ronayne said it would not be the union's intention to impact on the public who need its services, but warned that any action would have to be wide ranging and widespread.
Later tonight there’ll be more queues as record shops open at midnight to facilitate those wishing to buy U2’s latest album appropriately named “No line on the horizon”. There certainly is no sign of any horizon for the country or workers on average rates of pay, even less of a sign of Bono turning up to revenue to pay his fair share of tax to the Revenue Commissioners. Bono shifted part of his tax liability to Holland in 2006 the year of Live 8. Surely if you’re going to pontificate on social justice and inequity about the world you should at least be prepared to pay your own way. The Edge is reported today as being happy with his tax arrangements, I wonder why? I understand that there was a picket outside the Department of Finance yesterday in relation to Bono’s tax arrangements. The officials were probably relieved that it wasn’t themselves who were in the firing line on this one. That relief may not last for too much longer, Apparently there’s a press interview on the way where Bono defends the indefensible.