Martin: There will be tax cuts in October budget

Tánaiste Micheál Martin said the public finances are 'strong' in Ireland, and also said there would be additional expenditure on public services

Tánaiste and Minister for Foreign Affairs Micheál Martin also said: 'I will be leading Fianna Fáil into the next election'. Picture: Dan Linehan

Tánaiste Micheál Martin has said there will be tax cuts in October's Budget, but they will be "balanced" with cost of living measures.

Mr Martin was speaking in Belfast after a warning was sounded by the Irish Fiscal Advisory Council (IFAC) that the Government should not be tempted to tap into windfall tax revenues currently flooding into the Exchequer, to hugely increase spending or slash taxes.

He said the public finances are "strong" in Ireland and that surpluses are expected for the next few years. 

However, he said some of those are one-off in nature because of the degree to which corporate tax revenue is being taken in.

Mr Martin said the Government is aware of this and will not make any permanent spending pledges based on one-off taxes. "We will have a strong budget," he said.

We are very conscious of the advice and of the need to watch inflation. On the other hand, we have to balance that against the fact that a lot of people are under a lot of pressure in respect of the cost of living and in respect of access to services and the cost of services.

"We've been reducing the cost of public services over the last two years in particular. Effort has gone, not just in giving grants to people in terms of dealing with that, but also in reducing the cost of public transport, cost of healthcare, cost of education in terms of examination fees, and now the initiative for extra relief in terms of free school books for children.

There will be tax relief in the Budget and there will be additional expenditure in terms of public services, but the precise details of all of that will have to be worked on with the Government and the first step would be the summer economic statement.

Mr Martin said "anything the government does will be sustainable" and will ensure Ireland has capital reserves.

Asked about his own future, Mr Martin said those in Fianna Fáil who are worried about him leaving the party next year have been "worried for quite some time" and he was unequivocal in his own commitment to leading the party.

"I've said it a number of times, I don't know how many times I have to say it — I'll be leading Fianna Fáil into the next general election. That is my objective.

"Our TDs are strong in their constituencies with the local elections next year. We're preparing for those. There has been 40% of conventions held already. 

"And we have a strong pipeline of new, younger candidates and women coming forward, in addition to the very strong county councillors and city councillors that give us a good base for the general election when it happens. I think we should go full term in this Government.

"I will be leading Fianna Fáil into the next election."

Mr Martin criticised Sinn Féin over its attitude towards legacy issues in the North. He said that MP John Finucane should not speak at an event this weekend commemorating IRA volunteers.