Election 2024

Election 2024: Extra €52bn spending proposed in Fine Gael manifesto is ‘secure and sensible’, Harris says

Taoiseach rejects suggestion that plans for tax cuts, pension increases and other outlays like ‘throwing snuff at a wake’

Taoiseach Simon Harris at the launch of Fine Gael's general election manifesto at the Horse and Jockey Hotel in Co Tipperary on Sunday. Photograph: Brian Lawless/PA Wire
Taoiseach Simon Harris at the launch of Fine Gael's general election manifesto at the Horse and Jockey Hotel in Co Tipperary on Sunday. Photograph: Brian Lawless/PA Wire
Harry McGee
Sun Nov 17 2024 - 13:18

Fine Gael has pledged to break-up the Office of Public Works (OPW), cut taxes by €7 billion and provide a €1,000 savings fund to every newborn baby.

The party’s general election manifesto proposes increased spending of €52 billion between next year and 2030, including an extra €2.5 billion to pay for a €60 increase to the State pension in that period.

The document also commits to almost €1 billion in additional spending on childcare with a view to bringing monthly costs down to €200 per child and to provide 30,000 new places.

Taoiseach Simon Harris, Minister for Justice Helen McEntree and Minister for Public Expenditure Paschal Donohoe set out the proposals at the Horse and Jockey Hotel in Co Tipperary on Sunday.

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Mr Donohoe insisted the spending plans would not put the economy in jeopardy, arguing that Fine Gael was committed to balancing the books and continuing to put money into two “rainy-day” funds.

The outgoing Minister for Public Expenditure Paschal Donohoe defended the spending proposals contained in Fine Gael's general election manifesto. Photograph: Brian Lawless/PA Wire
The outgoing Minister for Public Expenditure Paschal Donohoe defended the spending proposals contained in Fine Gael's general election manifesto. Photograph: Brian Lawless/PA Wire

The manifesto sets out plans for a Department of Infrastructure, which would be formed by the merging of the Department of Transport and the Department of Environment, Climate Change and Communications, as well as the infrastructure side of the Department of Public Expenditure.

An eye-catching part of the proposal is the effective dismantling of the OPW, which has been the subject of criticism over its expenditure of €336,000 on a bicycle shelter outside Leinster House and a security hut at Government Buildings that cost €1.4 million. It would be “subsumed” into the new department, with the National Monuments’ Service moved into the Department of Housing.

“I believe this five year vision sets out a brighter future for our country, a more secure future in an uncertain world where the economy, your job, your livelihood, is protected,” Mr Harris told those who attended the launch.

“You can keep more of their own hard-earned money and worry less about the cost of accessing State services. We will get our young people out of box rooms in their parents’ houses and into homes of their own.”

On tax, the manifesto commits to increasing the higher PAYE threshold by €2,000 each year for five years. This would mean the higher tax rate would kick in at €54,000, which would cost an estimated €2.5 billion. Tax credits would be increased by an additional €750 by 2030, a measure that would cost a total of €2 billion. The inheritance tax exemption for children inheriting from parents would be increased to €500,000.

There is a commitment to building 300,000 homes over five years. In addition, Fine Gael says the Help-to-Buy Scheme would be extended until 2030 and increased to €40,000.

The party has also said VAT on electricity and gas would be reduced from 13.5 to 11 per cent on a permanent basis and that households would receive a €40 rebate on their energy bills to make up for the difference between this rate and the current 9 per cent rate (a temporary rate in place until next spring). Food and catering business would also be subject to an 11 per cent VAT rate.

Taoiseach and Fine Gael leader said the spending increases proposed in his party's general election manifesto were not akin to 'throwing snuff at a wake'. Photograph: Brian Lawless/PA Wire
Taoiseach and Fine Gael leader said the spending increases proposed in his party's general election manifesto were not akin to 'throwing snuff at a wake'. Photograph: Brian Lawless/PA Wire

The State pension would be increased by €12 each year for five years at an overall cost to the Exchequer of €2.4 billion.

On immigration, Fine Gael has committed to building designated centres that would facilitate faster processing of asylum applicants from safe countries or those arriving with no, or false, documents. Appeals and removals would be completed within 90 days under the plan. The manifesto proposes a dedicated division of the High Court to handle immigration cases and that asylum seekers would, in some cases, be required to contribute to their accommodation costs.

On health, Fine Gael is proposing free GP care of all under-18s, 5,000 new inpatient beds by 2031 and 292 extra beds at University Hospital Limerick by 2028

The party has also pledged to retain the current exemption for the EU Nitrates Derogation, which has been a key demand of groups representing farmers.

Asked if his party was throwing around promises of spending like snuff at a wake, Mr Harris replied: “I would very respectfully push back on that. This is a manifesto that is setting aside billions of euros of people’s money for the future.

“This does not tally with throwing snuff at a wake. We are doing things on a phased basis. This is a secure and sensible way and enables us each year to decide which amount (we will set aside).”

Harry McGee

Harry McGee

Harry McGee is a Political Correspondent with The Irish Times