Martin: FF income tax policy ‘inadequate’

THE bookies’ favourite to be the next leader of Fianna Fáil said his Government’s income tax policy for the last 10 years was inadequate.

Foreign Affairs Minister Micheál Martin said too many people were allowed to work without paying tax and this was out of line with increased spending on pensions and child benefit.

“In the 1990s, everybody was paying some sort of tax. In 1996-1997, everybody was making a contribution, no matter how low your income was. That was just the norm and had been the norm throughout the 70s, 80s and 90s.”

Mr Martin, in an interview that reflected on the successes and failures of Fianna Fáil’s extended tenure in power, said while the Government had done “a lot of good things,” mistakes had been made.

These included some of the decisions taken since the start of the financial crisis.

He said NAMA was fashioned too slowly. The presentation and communication of policies was not what it should have been. Growth projections for 2010 were too optimistic.

He also accepted AIB, in particular, was given a long time to work out its problems when a speedier intervention was needed.

Mr Martin said, throughout the crisis, Europe had been of considerable support, especially with funding from the ECB but the lack of cohesion at a political level had hurt Ireland.

“There has been a lack of decisive action at European level. It has been too little too late on most occasions.”

He said the Greek rescue was dragged out too long and the union should have intervened more.

Furthermore, the ambiguous pronouncement of German Chancellor Angela Merkel and French President Nicholas Sarkozy on making bond holders share the cost of national rescue packages had been the “trigger” for Ireland becoming reliant on the IMF.

“The did not specify what they meant — when we went looking for answers as to what do you mean by burden sharing, there was no clear, specific, answer.”

However, despite the historic nature of the recent developments, Mr Martin said the Government’s relationship with the public took its biggest hit in the early days of the crisis.

Long before the finalisation of NAMA or the IMF rescue, there was to be no comeback from two events in late 2008 and early 2009.

“I think the public service levy took 10% off the Government’s polling that it never got back. The medical card decision was another milestone in terms of support for the Government. And we didn’t quite recover in polling terms.”

Mr Martin said he believed Brian Cowen would lead Fianna Fáil into the general election and before this was called, Government would, and should, have time to pass Green Party-driven legislation on banning corporate donations and tackling climate change.

On the issue of the party leadership, he said if Mr Cowen stepped down, he would like to lead Fianna Fáil. And if, as was expected, Fianna Fáil was in opposition following the election, Mr Martin said he would not follow some of his long-time Cabinet colleagues into retirement.

The Cork TD said he wanted to help rebuild Fianna Fáil, improve its morale and focus on getting the party back into shape.

He said despite 30 years in politics, he still had the appetite to contribute to the public debate. “Life evolves, politics evolves. It doesn’t stay the same. Things change. Issues change.”