Gilmore seeks to distance party from Fine Gael

Tánaiste Eamon Gilmore has admitted to coalition tensions ahead of the crunch Euro and local elections in May.

As the two governing parties scramble to mark out some distinctive territory in the run-up to the biggest poll test since being swept to power by a landslide in 2011, Mr Gilmore sought to distance Labour from Fine Gael.

The Tánaiste signalled that policy differences between the two parties were an issue in the Coalition as the parties geared up to fight national polls.

“We are two different political parties and in any coalition government there are policy issues that have to be discussed,” Mr Gilmore said, referring to claims the two sides had clashed on a number of matters in recent weeks.

The Labour leader denied the party’s pledge to cut property tax by up to 15% was a stunt, and said it would be done on a “council by council” basis.

Taoiseach Enda Kenny pledged to block any bonuses for bankers at State-controlled AIB as he insisted there was still no alternative to the Coalition’s austerity agenda. “They are not going to get bonuses,” he told RTÉ.

Mr Kenny added that the “dysfunctional” banking sector had still not sufficiently cleaned-up its act, as: “They are not yet contributing to the domestic economy in the way that we want to see them.”

Mr Kenny was echoing Finance Minister Michael Noonan’s firm stance against a return to a bonus culture at AIB.

The Taoiseach said the Government would help create 50,000 jobs this year and next.

But Fianna Fáil accused him of back-tracking on bank recapitalisation and securing payments on legacy debts from the EU.

Mr Gilmore was also dismissive of Sinn Féin leader Gerry Adams’s call for parties of the left to work together.

“I think Sinn Féin has a long way to go before anyone can consider them a party of government.

“Their economic policies are something of a fairytale,” Mr Gilmore said as he insisted Sinn Féin still had questions to answer regarding the disappeared in the Troubles.

In what could be seen as a softening of attitudes to the rebel Fine Gael TDs who were thrown out of the parliamentary party for voting against X-Case legislation, Mr Kenny noted they had stayed loyal in other areas of policy, and it had been their decision to break with colleagues.

Some members of the Reform Alliance have made it clear they would like to return to Fine Gael before the general election, in spring 2016.