Fine Gael doubles down on tax cut plans despite criticism

Dublin Fingal TD Alan Farrell proposed the party hold an off-site forum in Dublin city with the details to be agreed on June 14.

It is understood Public Expenditure Minister Paschal Donohoe told the meeting that he was happy to participate in whatever form the parliamentary party wants.

Fine Gael is proposing to hold a forum on tax reform to create new policies to “differentiate” itself from Fianna Fáil and the Green Party.

At a private party meeting, Fine Gael politicians were told the party could “strategically leak nice bits” of tax proposals that could be beneficial to them. Minister Paschal Donohoe signalled he would participate in the forum. 

Dublin Fingal TD Alan Farrell proposed that the party hold an off-site forum in Dublin city with the details to be agreed on June 14.

The move by Fine Gael will likely further fuel tension with Fianna Fáil who were left outraged last week by a budget proposal for tax cuts set out by three Fine Gael junior ministers.

Despite Tánaiste Micheál Martin and Green Party leader Eamon Ryan’s criticisms of the public proposal, Fine Gael are now doubling down on their plans.

Mr Farrell said the forum should be for the Fine Gael parliamentary party only and to hear from experts to explore a 30% tax rate, examine tax band thresholds as well as the possibility of amalgamating USC and PRSI among other ideas.

Mr Farrell told the meeting that it would be good for the party to “set out our stall” to differentiate Fine Gael from its government partners, particularly ahead of the local elections next year and the next general election.

He said the forum could be “carefully managed” in terms of the media and he said the party could “strategically leak nice bits” that could benefit the party.

It was agreed that a budget meeting would be held and the proposal for a tax forum can be discussed again that same day, looking at what the terms of reference may be.

It is understood Public Expenditure Minister Paschal Donohoe told the meeting that he was happy to participate in whatever forum the parliamentary party wants.

It was agreed that the party would hold a budget meeting on June 14, after politicians return from recess and the proposal for a tax forum can be discussed again that same day, looking at what the terms of reference may be.

Enterprise Minister and deputy leader of the party, Simon Coveney, who chaired the meeting while Taoiseach Leo Varadkar is in Moldova said it was a “sensible decision” to decide how best to approach “broader policy” measures.

Mr Coveney said there is a need for collegiality in government and the Coalition has to work together to get a budget passed but that does not mean the party cannot be clear about its position.

It is understood Cork Southwest Senator Tim Lombard said the forum was important to also examine issues such as stamp duty on agricultural land and succession planning for small businesses such as their ability to transfer their tax reliefs to their family members.

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Mr Lombard said the forum should not focus entirely on the upcoming budget but instead on Fine Gael’s long-term tax strategies.

Mr Farrell said the forum should focus on policy creation which will be “unique” to Fine Gael ahead of the next general election.

He also told the meeting that the conversation that has arisen after three junior ministers wrote an op-ed about a proposed €1,000 tax cut for “middle Ireland” was important.

He said it was noted that for an entire week, Fine Gael was not talking about Sinn Féin and he said he believed there was a lesson in that.

He said it was often “difficult” in government to dictate the narrative and discussion in the media and the proposed tax forum should be seen as an opportunity for the party.