Ireland will have a social and economic price to pay without “ambitious” investment in the country’s infrastructure, the Sinn Fein president has said.
Mary Lou McDonald defended her party’s spending plans in the face of claims from Fine Gael that Sinn Fein was effectively proposing a “heist” on billions of euros set aside by the current Government in longer term rainy day funds.
Fianna Fail leader Micheal Martin has claimed the opposition party’s manifesto lays out a “damaging cocktail” of tax and spend policies.
Sinn Fein has denied it will use 16 billion euros set aside in the Future Ireland Fund and the Infrastructure, Climate and Nature Fund, and has insisted it will actually save a further 15 billion euros in rainy day funds by running budget surpluses across the five years of the next government term.
Ms McDonald responded to the criticism of her rivals as she canvassed in west Dublin on Wednesday.
“Fine Gael have been in government and in alliance with the party that literally crashed the Irish economy,” she said of Fine Gael and Fianna Fail.
“They seem to have very short memories, and they seem to be unable to actually read accurately the Sinn Fein proposal.
“We are proposing ambitious and very necessary investment in fundamental infrastructure, including housing, that we need as a society and as an economy to build our prosperity.
“In the absence of the type of investment that we are proposing, there will be a social price to be paid, and there will be an economic price to be paid.
“Our plan will return surpluses year on year for the five years of government, amounting to 15 billion (euros).
“Those will be set aside and invested in the funds for a rainy day, because that is an important thing to do.
“But Fine Gael need to wake up and smell the coffee. It’s raining now for so many families and for so many communities, and they cannot tolerate or be asked to wait and wait and wait while so many of their basic needs aren’t being met.
Fine Gael ministers Paschal Donohoe (right) and Peter Burke criticised Sinn Fein’s tax and spending proposals as they spoke to media in Dublin (David Young/PA)
“And, by the way, in terms of investment into Ireland, the most consistent issue that is raised by investors, large and small, is the question of accommodation and housing.
“Fine Gael should know that, if they are serious about growing investment and maintaining stability in our economy and then, crucially, across our society.”
Tanaiste Mr Martin said the Sinn Fein manifesto contained “eye watering” tax plans that would “really damage” Ireland’s enterprise economy and tax small and medium sized enterprises “out of existence”.
“It’s also, I think, depressing that a political party that aspires to be in power is now deciding to get rid of the funds that we have created, the Future Ireland Fund and the Infrastructure, Climate and Nature Fund,” he said.
“We, along with many economists, have said that some of the corporation tax revenue is windfall and needs to be put aside to deal with challenges we will have in the future, for pensions, for health services as we live longer and age.
“And we were aiming to have 16 billion euro by the end of 2025, we’re aiming to have 50 billion euro put aside by the end of the decade, and Sinn Fein wants to spend it all now.
“That’ll have huge inflationary impact as well, by the way. But it really is throwing caution out the window, and it’s a very, very, I think, potentially damaging cocktail of tax and spend from the Sinn Fein party, which will be very damaging to the Irish economy.”
Fine Gael Public Expenditure minister Paschal Donohoe accused Sinn Fein of committing the “biggest heist ever” on the island of Ireland.
Tanaiste and Fianna Fail leader Micheal Martin speaking to the media as he arrives at Government Buildings, Dublin, to attend Cabinet on Wednesday (Brian Lawless/PA)
Mr Donohoe and Fine Gael minister of state Peter Burke posed for photos on Wednesday morning in front of a mobile video screen broadcasting a party campaign video depicting Sinn Fein smashing a piggy bank.
“If the last number of years has taught us anything it is that economic shocks of epic proportions can hit us at any time,” said Mr Donohoe.
“Brexit, soaring inflation and a global pandemic all threatened to pull the rug out from under us without much warning.
“It is thanks to the prudent approach adopted by Fine Gael in government that we were able to steady the ship, provide for our people when it was needed most, get our businesses back open and our people back to work without delay, safe-guarding people’s incomes.”
He added: “On top of spending almost every cent we have, Sinn Fein would raise your taxes, plunder your inheritance, threaten job creation, and narrow our tax bases, undermining the very foundations of our economic success at a time when a Transatlantic trade war looms. This is very serious and cannot go unchecked.”
Mr Donohoe called on Sinn Fein finance spokesman Pearse Doherty to take part in a debate with him on their respective parties’ economic policies.