Kenny rules out pact with Labour in lead up to election

An Taoiseach Enda Kenny has promised to put more cash back in people’s pockets, and said Irish emigrants were not returning home because they would be “screwed” for tax.

Mr Kenny also ruled out Fine Gael and Labour forming a pact in the lead up to the general election.

Speaking at the MacGill Summer School in Donegal, he told a packed hall that Ireland was at a crossroads and the electorate would decide next year on the direction for the country.

Mr Kenny was met by a small group of water charge protestors who were kept back from the town hall by barriers and a large garda presence.

The Taoiseach said that the Coalition would make “no reckless commitments” in October’s budget.

“You will not see the Government producing endless lists that cannot be met.”

Mr Kenny focused a lot of his speech on how to attract emigrants home. He described how those living abroad had told him they wanted stable jobs and lower taxes, if they returned to Ireland: “In other countries, they get to keep far more pay than in Ireland.”

He reiterated the issue of the marginal rate of tax of 51% hitting workers on €33,800 or more and described what Irish emigrants had told him about their reluctance to come back.

“Why should I go back if I’m going to get screwed for tax? [they said].”

He reiterated the Government’s intention to bring down the Universal Social Charge, and to bring the marginal rate of tax for those earning below €70,000 down to less than 50% “We will put more cash back in people’s pockets.”

Mr Kenny said 2016 would be a year of family reunification where people would return from places such as Melbourne, Cleveland, London and San Francisco.

Ruling out a pre-election pact with Labour, he said: “The parties are of a mind that they should produce their own programmes and i think that’s perfectly reasonable.”