The Taoiseach has sharpened attacks on Sinn Féin’s economic policy, accusing the party of an “anti-enterprise” stance amid buoyant exchequer returns which boosted the chances of more expansive budget day policies.
Speaking in Cork on Wednesday, Mr Martin said Sinn Féin’s “knee jerk” reaction to problems “would be to tax and particularly tax small enterprises in Ireland,” adding that smaller businesses “have the most to fear from Sinn Féin policies because there is a reflex reaction to any issue which would be ‘Let’s tax them more’,” he said.
The Irish Times reported on Wednesday that leading Dublin corporate law firm, William Fry has found potential foreign investors are asking their local advisers about the potential make up of the next government, and if Sinn Féin are involved, whether they will be business friendly.
Asked about the William Fry analysis, Mr Martin said Ireland had a very strong record in terms of securing direct foreign investment but that was the result of a policy of encouraging multinationals to invest here which had served the country well for 60 years and it was important to maintain a pro-enterprise culture in Ireland.
“We are a small open economy and the twin approach of developing our own indigenous companies and attracting FDI into the country has worked extremely well. The connection between our own indigenous companies and multinationals has worked very well - so enterprise does matter.
“Enterprise policy matters too but it is a different issue, I think Sinn Féin’s policies are anti-enterprise and they would tax many entities unduly which would create issues for our own indigenous companies, never mind foreign direct investment decisions,” Mr Martin said.
“Sometimes I get the sense that we are complacent about the enterprise story and the economy story and we take it for granted but it takes a particular set of policies and approach and a pro-, positive European Union approach is very important in that regard too.”
Mr Martin said Sinn Féin had taken a very negative approach to the European Union from the outset, opposing Ireland joining the EEC in 1973 while it had consistently opposed various treaties and has been very anti-EU in its outlook ever since.
“Sinn Féin opposed going in, they opposed every single treaty that related to Europe and listening in the Dáil for the last 10 years, as leader of Fianna Fáil – I’ve always been struck by how constantly negative about the European Union they have been, always seeking to undermine it.”
Of Sinn Féin’s tax plans, the Taoiseach added: “If you are an SME that has been working hard for ten or 15 years and then you start making money, making over €100,000 or more but you spent ten years making nothing, in my view, you are entitled to reap the rewards of your hard work the previous ten or 15 years. I think a lot of people in small and medium size enterprises would be hard hit by the policies that Sinn Féin propose.”
Sinn Féin finance spokesman Pearse Doherty accused the Taoiseach of “trying to deflect by telling lies about Sinn Féin” rather than addressing the cost of living crisis. He said the party would not increase tax on the profits of SMEs, and has “long argued” for enhanced research tax credits for them.
The opposition also sought to put pressure on the Government to do more to alleviate cost of living pressures following the publication of the exchequer returns.
They showed the exchequer generated a surplus of €5 billion in the seven months to July, compared to a deficit of €5.7 billion this time last year.
GED Nash, the Labour Party finance spokesman said while the national finances were in “great shape”, the same could not be said for low and middle income earners “whose family finances are in tatters”. He said the figures showed there’s “much more scope” ahead of the budget for once off measures and “transformational and lasting interventions”.
Social Democrats co-leader Róisín Shortall said there should be a substantial allocation to retrofitting for pensioners and those in social housing, and a low interest loan scheme for working families to invest in retrofits - and €100 million for families in severe need as a result of cost of living pressures.
Several Government sources were enthusiastic that the record tax receipts, driven by big increases in corporate tax, VAT and income tax increased room to do more in September.
A tax break for middle earners is a priority for Fine Gael, while Minister for Finance Paschal Donohoe is expected to make a play to use some of the windfall receipts to restore the Government’s rainy day fund after it was depleted during the pandemic.
Senior coalition sources said it should increase the capacity - and the pressure - to do more “one-off” measures this year in next month’s budget, while cautioning the Government couldn’t depart radically from the outline plan in the Summer Economic Statement published in June.
