Leo Varadkar using pensions as ‘soap box’, says Dara Calleary

A senior Fianna Fáil TD has accused Social Protection Minister Leo Varadkar of using an ongoing stand-off over unresolved budget plans as “a soap box for leadership ambitions”.

Opposition public expenditure and reform spokesman Dara Calleary made the remark 24 hours after the Fine Gael TD claimed Fianna Fáil was “throwing shapes and flying kites” over the same situation.

Speaking to reporters in Leinster House as budget negotiations intensify, Mr Calleary said despite Mr Varadkar’s criticism over his party’s policies, the comments are more to do with internal Fine Gael issues than next year’s spending plans.

Describing his overall interaction with Government ministers over the budget to date as cordial, he said Mr Varadkar’s remarks are not following the same path.

“I would rather continue that way [a cordial atmosphere] and I wish certain ministers didn’t use it [the budget talks] as a soap box for leadership ambitions,” he said.

Mr Calleary comments came after it was put to him that Mr Varadkar had on Monday suggested the proposed €5 pension increase being sought for next year was a Fine Gael policy.

While the issue is contained in previous Fine Gael documents, Mr Calleary said the Government party’s record on the issue is “one of throwing them [pensioners] under the bus”.

Meanwhile, Cabinet is due to meet again tomorrow — the second time this week — to finalise its budget plans amid ongoing attempts to sign off on key spending areas for next year.

While the majority of departments are close to concluding deals, the departments of health and social protection remain key stumbling blocks due to issues surrounding pensions, lone parent payments, home help allowances and other matters.

It is expected that further meetings with between Finance Minister Michael Noonan and Public Expenditure Minister Paschal Donohoe, and Fianna Fáil’s finance spokesman Michael McGrath and Mr Calleary, will take place over the next 48 hours before the opposition party publishes its alternative budget proposals on Friday.

However, there remain key stumbling blocks between both parties on issues such as the €5 pension, the first time buyers house scheme and other issues, with exact details yet to be agreed.

Separately, unaligned Independent Children’s Minister Katherine Zappone is believed to be continuing to push for any new childcare package supports to be limited to families with a net income of €47,000 — unless the departments of finance and public expenditure provide additional resources.

In recent days, there has been growing speculation over suggestions that some Fine Gael ministers want to extend the scheme to families with a net income of €55,000 in a bid to help win over voters in the so-called squeezed middle category.

The move could cost a total of €100m next year if it is extended to the higher salary group.

However, it is understood Ms Zappone remains of the view that the €47,000 figure must be maintained unless more funding than planned is given to her department to cover the extra costs in order to prevent any negative effect on other Department of Children areas.

Next year’s budget, which will be formally launched on Tuesday, will be based on a €1bn spend available to Government, which will be split two thirds in favour of spending on public services with the remaining €340m being used to reduce taxes.