Sinn Fein only offers unrealistic alternatives

The anti-jobs party’s pre-Budget submission was nothing less than fantastical, with no ideas, writes Willie O’Dea

ON Tuesday, Michael Noonan will present his sixth Budget. The first five were crafted to satisfy the wants of Fine Gael’s backers, with a nod to Labour. This one will be different.

For the first time a minister for finance will have to consult with — and try to include — a range of other political voices, including the Opposition. Have no doubt, it will still be a Government Budget: one that is approved by the Cabinet of Fine Gael and Independents but, hopefully, will also reflect views from outside Government ranks.

We are heading into a period of uncertainty courtesy of the UK vote to leave the EU. Britain seems to be heading for a hard Brexit when it starts Article 50 negotiations at the end of March. Brexit poses a huge threat to our economy, but it is not the only one.

Another threat was unveiled last week with bells, whistles and turquoise posters, when Sinn Fein launched its pre-Budget submission.

It is a fantastical document, perhaps in tribute to Roald Dahl’s 100th anniversary.

Despite already doing U-turns on their previous commitments to abolish USC and increase the effective rate of corporation tax, Sinn Fein has managed to retain its unique selling point as Ireland’s premier anti-jobs and anti-enterprise party.

Sinn Fein has held off a stiff challenge for this crown from the AAA-PBP by promising a whopping €1.74bn in new taxes on income and assets in 2017 alone.

In terms of specifics, Sinn Fein wants to return us to a 1980s era of cripplingly high income taxes. Its policy is to introduce a new effective rate of tax of almost 60pc on income in excess of €100,000. If we want to drive away foreign direct investment, this is the ideal plan. It is also an ironclad way to penalise the self-employed by moving their marginal rate up to almost 70pc. So much for Sinn Fein’s support for small businesses.

But why stop there? Sinn Fein also wants to introduce a new 15.75pc rate of employers’ PRSI on salaries in excess of €100,000. I bet Gerry or Martin won’t mention this to their American industrialist pals when they hold their next €500-a-plate fundraiser in New York.

As if these two moves were not enough, Sinn Fein also wants to cut private pension tax reliefs. This proposal comes at a time when everybody accepts that the State pension scheme is becoming increasingly unsustainable and people will have to be encouraged to save to avoid penury in old age.

I suppose we should be grateful for small mercies — it has abandoned its previous plan of a “staggered reduction of ” the relief after Fianna Fail showed it will reduce the takehome pay of anyone earning more than €33,800 who made a pension contribution.

Its other tax-raising plans include:

• Increasing inheritance tax to 36pc — as house prices start to rise again.

• Increasing the betting duty to 3pc — to help drive any remaining independent bookmakers out of business.

• Re-introducing a second home charge of €400 per annum — when the rental market is already at its limit.

However, the most incomprehensible of all its other proposals, is its plan to increase VAT on hotel rooms by 50pc. Does it want to completely kill off tourism?

The UK is one of our biggest tourist markets. The recent drop in Sterling has slashed the effective spending power of British tourists coming to Ireland by 20pc.

Now Sinn Fein wants to slash it further. Is this their 21st-century version of Brits out?

At a time when Ireland needs realistic alternative policies, all Sinn Fein can offer are alternatives to policies.