FINE GAEL INTENDS to slash taxes by €7 billion over its five years while vastly spending funds on housing, childcare and permanent cost-of-living measures, the party’s manifesto today revealed.

Leader Simon Harris said today in Co Tipperary that his party would commit to introducing a permanent 11% VAT rate for food and entertainment businesses – and rejected claims that such a measure would lead to increase energy bills.

Uniquely, the party is also planning to pay €1,000 into an ‘acorn savings account’ for all newborns, and €1,500 for children from disadvantaged backgrounds, to tackle inequality among children.

Investments of €40 billion for 300,000 homes, caps on the monthly cost of childcare at €200 per child and a permanent double-child benefit for parents every August also feature in the document.

Increasing the entry threshold for the 3% USC band to €40,000 and for the 8% band to €75,000, making sure people earning €54,000 are not paying higher rates of tax and annual €75 increases to the main tax credits are the headline promises.

Tax cuts

Harris defended the spending and tax cuts in front of reporters and candidates today, claiming that Fine Gael intends to do is the exact same thing government has been doing for the last two budget.

“I would make the point too, and this is not shared universally  across all political parties, we’re doing this while continuing to put aside millions of taxpayers money each and every year,” the Taoiseach said.

He said that Fine Gael’s measures to invest €2 billion each year into the Climate and Nature Fund to help households with the Green Transition and €4-6 billion into the Future Ireland Fund.

Harris said the spending and taxation plans in Fine Gael's manifesto are in line with common budgetary procedures which have been established by his party. Alamy Alamy

“That’s exactly to make sure that we don’t repeat the mistakes of the past,” Harris said, adding that he was “very satisfied” that his plan was in line with common budgetary practice established by his government over the last number of years.

Later, he rejected the claim that plans to permanently reduce the VAT rate for food and entertainment businesses to 11% would lead to higher energy bills. Harris said energy bills rebates of €40 would deliver lower bills and cover the difference.

“Much to the disappointment of my political opponents, energy bills will fall under Fine Gael’s proposals. But, unlike some people, we believe that actually small businesses don’t need to be invited to a pre-Budget forum about their costs. They need action now.”

Housing

Fine Gael is promising to deliver 303,000 homes by 2030, if elected into government after polling day on 29 November. Out of that, 133,000 homes will be social, affordable and cost-rental properties.

It intends to retain the help-to-buy scheme and increase the grant to €40,000 as well. The party also plans to broaden the first-home scheme so that first-time buyers purchasing a second-hand home are eligible for the support.

Asked about his thoughts on analysis that concludes that both schemes inflate the price of housing, Harris said he believed the housing market could not rectify the prices of homes and that State intervention is warranted.

“The level of intervention that’s taking place in the Irish housing market now is unprecedented in our own country and almost unparalleled across the European Union,” the Taoiseach said.

“And that is the right policy decision to make, such as the gravity of the situation.”

Childcare, health & education

As well as capping costs, Fine Gael wants to deliver 30,000 new early-learning places in publicly-funded facilities by 2030 and add an extra hour of free preschool hours under the early childhood care and education scheme.

Elsewhere, Fine Gael wants to establish a universal savings account for newborns – with a commitment that the State would pay an initial €1,000 into the fund with an interest rate of 4%, with it in government.

Parents will be allowed to add a further €2,000 each year. Additionally, Fine Gael promises that children from disadvantaged backgrounds will receive €1,500 into this ‘Acorn Savings Account’.

Harris also outlined that he wants his party to extend free GP care to all children under the age of 18. He added that Fine Gael would not do it “in isolation” and would engage with representative organisations on the matter.

Fine Gael promised to provide free GP care to all children under 18 years old. Alamy Alamy

The Taoiseach said the free care would be introduced in a phased, sustainable and managed manner – with increased investment for GPs and an additional 277 places in Ireland.

“What I would say to GP representative bodies, very respectfully, is please don’t rush with your condemnation of this proposal,” Harris said, stressing that Fine Gael will plan to engage with the groups, as well as pharmacists, to agree to new public contracts.

“We want to make sure that every child in Ireland can access the doctor,” he said.

On education, Fine Gael want to introduce open-book exams to the Leaving Certificate and expand access to third-level education to include courses outside of the CAO points system.

For special education, the party plans to develop a dedicated therapy service for children in all special schools and create a common application process nationwide. A multi-year capital programme would also be established for early accommodation.

Asked by The Journal if Fine Gael would commit to these actions if in government, Harris said a vote has not been cast yet – but stressed the party has “serious red lines” for any formation discussions.

He said that voters should judge the package on what they want to see in Ireland, adding: “If you value it, vote for it.”