Fianna Fáil has claimed speculation about a coalition with Sinn Féin is damaging the party.

Fianna Fáil’s spokesman for finance Michael McGrath ruled out any potential coalition with Gerry Adams’s party.

Mr McGrath said: “I suspect that is the reason why they are sending mixed messages on the issue. Well let me be absolutely clear - there will be no coalition involving Fianna Fáil and Sinn Féin. It will not happen.

“It will not be in the interests of the country for it to happen. Sinn Féin are not fit for government, and Fianna Fáil will not support any government that Sinn Féin has a role in.”

Right 2 Change principles

Sinn Féin has refused to rule out a coalition with Fianna Fáil but has said the party would have to sign up to the Right 2 Change principles for that to happen.

Fianna Fáil has insisted it will not join forces with Sinn Féin or Fine Gael and will only enter government as a majority party.

Mr McGrath insisted Fianna Fáil is aiming and preparing for government and will not put a cap on its ambitions.

He said the party is running 70 candidates, and each one is contesting to win a seat.

Mr McGrath denied Fianna Fáil’s message was unclear or being drowned out by the opposition.

He said: “The message is that the recovery is secure under Fianna Fáil. That as a party we, more than anyone, have learned the mistakes of the past - that we are a party that is strongly pro-enterprise and that we do believe in rewarding work.

‘Social solidarity’

“What distinguishes us in the main from Fine Gael is our sense of social solidarity. We do not believe in the divide-and-conquer approach.

“We don’t believe in leaving sections behind and writing them off. We do not believe in making a crude political calculation about who is likely to support us. That is not the Fianna Fáil way.”

Mr McGrath confirmed there was a job of work to do to get the Fianna Fáil message heard.

The finance spokesman was speaking as he confirmed the party would abolish the Universal Social Charge for all earners up to €80,000 over five years if it is elected into government.

The 1 per cent rate of USC that applies to income up to €12,012 would be scrapped in its first budget, while the 3 per cent rate which applies on the next €6,600 would be halved.

‘Responsible’ party

Mr McGrath said the party would be a responsible one, and insisted the lessons of the past had been learned.

The party said the 5.5 per cent rate would be cut over five years and it would reduce the 8 per cent rate of USC to 5.5 per cent if resources allowed it to.

Asked why Fianna Fáil will not commit to the total abolition of the levy, Mr McGrath said it was possible to do this, but he could not commit to something he was not certain of.

He said Fianna Fáil would be “prudent and cautious” with the economy.

The finance spokesman said the party would establish a rainy day fund which would ringfence funding in the event of an economic downturn.