Tánaiste Micheál Martin has contradicted Fine Gael’s calls to concentrate on Budget measures to benefit middle-income earners, saying Fianna Fáil’s priority will always be "low-income workers".
The Fianna Fáil leader said that while all Government parties are in favour of cutting taxes, he was not going to preempt October’s Budget and that processes must be followed.
It comes days after in-fighting in the coalition after Fine Gael ministers Jennifer Carroll MacNeill, Martin Heydon and Peter Burke wrote an opinion piece in the Irish Independent calling for €1,000 tax breaks for middle-income earners.
READ MORE - Harris says it is 'perfectly acceptable' for Fine Gael to call for tax breaks following Tánaiste criticism
While some senior Government ministers have attempted to downplay the row, there was an obvious split at the official opening of a €3 million project at St. Clare’s NS, Ballyjamesduff, Co Cavan. Fine Gael Junior Minister Josepha Madigan did not take part in a press conference with Mr Martin but instead stood at the back of the media huddle watching on.
The Tánaiste was asked if there was any one area that Fianna Fáil wanted to "claim" if Fine Gael was claiming tax cuts for middle-income earners.
He signalled a desire for the Government to help those on lower incomes.
He said: "All three parties are in favour of reducing tax. This isn't about parties competing with each other as to who's better at any given area.
"I think there's a broad range of concerns, from education, health, the investment of capital projects, child care, disability, the pay issue will be significant.
"I’m not going to preempt [the Budget]. We’ve agreed the Programme for Government is the glue that holds the Government together. It is quite substantive and comprehensive.
"Fianna Fáil’s priorities are, as always, fairness and we look after those who are in need the most.
"In terms of taxation, that low-income workers in particular would benefit. We have a very progressive tax system.
"I think, up to the mid-30 [thousand euro mark] don't pay any tax at all.
"They wouldn't benefit from those particular measures [Fine Gael are suggesting].
"You have to develop other measures by which they would benefit."
At the Fianna Fáil parliamentary party (PP) meeting on Wednesday night, multiple sources said that the Tánaiste branded the comments "unhelpful" and said that they "undermined the budgetary process".
When asked by the Irish Mirror what in particular he thought was unhelpful, Mr Martin said that there is a system in place to decide the Budget and this must be followed.
He said: "The real significant step and the immediate next step on the Budget will be the Summer Economic Statement.
"What will happen there is that the Minister of Finance Michael McGrath and the Minister of Public Expenditure Paschal Donohoe will work together on that.
"That will govern the envelope that will be available for tax, that will be available for expenditure.
"Those envelopes are going to be key in terms of the size of the tax package, the size of the expenditure package.
"My overall view, all I was saying at the PP [was…] I think government must act with coherence and collective Cabinet responsibility."
When asked what he thought about Fine Gael comments saying that they would not take "lectures from Fianna Fáil" following their part in the financial crash, Mr Martin said that it was keeping the media entertained.
Asked if he was entertained, he replied: "Mildly, yeah."
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