‘Fine Gael forced to adopt Labour position on USC’ says Tánaiste Joan Burton

Tánaiste Joan Burton has risked sparking fresh tensions with Fine Gael by claiming Labour’s coalition partner has been forced to back-track into “adopting the Labour party position” on the universal social charge (USC).

The Labour leader made the claim as she hit out at whoever is causing separate tensions within her own party over the leaking of an internal poll outlining which TDs will lose their seats, saying the row does not help anyone.

In recent days, both Fine Gael and Labour have clashed over Taoiseach Enda Kenny’s plan to scrap USC for all households during the lifetime of the next government, should the coalition be re-elected.

The view has caused tension with Labour due to the fact the junior government party wants anyone earning over €100,000 to continue paying the tax.

In a bid to reduce difficulties within the Coalition over a key part of its economic strategy as the general election looms, senior Fine Gael figures confirmed that while the party is continuing to push to abolish USC entirely, it will consider a previously unstated plan to ensure high earners still pay more taxes.

The new policy — which would see an income levy imposed on high earners through an increase in PSRI payments — is understood to be under consideration as a way to balance out the planned removal of all USC income.

However, while Fine Gael insists this is not a case of it being forced into a U-turn over its USC plan, speaking at an event in Dublin’s IFSC centre to highlight the return of the Christmas bonus this week for pensioners and those on social welfare, Ms Burton said Fine Gael has backed down on its own plans.

“Fine Gael is adopting the Labour party position,” she said. “If people are privileged enough to have an income of €100,000 or above I think it’s very logical that, in the kind of society we live in, those people should contribute a proportionately more in taxation.”

Meanwhile, Ms Burton was yesterday keen to state that separate Labour differences over an unpublished poll showing which TDs risk losing their seats benefit no one and need to be addressed.

Last week, a number of media outlets reported the results of an internal survey showing the party could lose as many as 20 seats in the general election — including those currently held by potential future leadership contenders Seán Sherlock and Alex White.

Despite being widely accused of being the person who leaked the file, Environment Minister and Labour deputy leader Alan Kelly continued to insist last night that he had no involvement in the leak.

Responding to the controversy, Ms Burton said her focus, and her party’s focus, is “on getting out there, electioneering, and getting as many of our candidates re-elected and back to the Dáil” as is possible.

The Tánaiste said she has “been talking to Alan [Kelly]” about the issue and that “like everybody else he has absolutely deplored whoever is responsible for doing that”.

“It’s difficult to know the motivation of whoever was doing that, they certainly weren’t helping themselves and not focussing on getting Labour people elected.”