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: Ireland
Irish election likely to be close
By Steve James
23 May 2007
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The outcome of tomorrows Irish general election is thought
too close to call.
In total, 470 candidates from 14 parties are standing for 165
seats in 43 constituencies. Opinion polls suggest that Fianna
Fail, currently with 80 seats and in coalition with the Progressive
Democrats with 8 seats, will still be the largest party, but with
significantly less of the vote than the previous election in 2002.
This means that a number of coalition combinations are possible,
centring on Fianna Fail, or its main rival, Fine Gael, who currently
hold 32 seats, for control of the Irish parliament, the Dáil
Éireann. Either party could form a government in alliance
with the Progressive Democrats, Labour, the Greens, or Sinn Fein,
who currently hold 8, 21, 6 and 5 seats, respectively.
The Socialist Party, allied with the Committee for a Workers
International (formerly the Militant Tendency), who have one seat,
is also standing, as are several independents and Progressive
Alliance candidates associated with the Socialist Workers Party.
The Workers Party of Ireland, formerly the Official Sinn Fein,
is also standing candidates.
Fine Gael, Sinn Fein, the Socialist Party and the Greens are
all expected to do well, benefiting from a general dissatisfaction
with the government. The Progressive Democrats are expected to
do particularly badly.
However, few differences can be identified between the manifestos
of the main parties standing for election. The overriding concern
of them all is to defend the interests of the Irish-based super-rich,
and aspiring layers of the middle class, by maintaining low rates
of corporation tax while devoting resources accrued from taxes
on working people towards all-Ireland energy and transport infrastructure
spending.
All the parties propose some limited spending increases in
housing and health, but only to the extent that high growth rates
generate extra tax revenue.
Fianna Fail guarantees that the 12.5 percent level of corporation
tax will not be changed and opposes any moves towards tax harmonisation
across Europe, which would undermine Irelands competitive
advantage.
Aware that Irelands attractiveness to the major transnationals
is already under serious threat, Fianna Fail acknowledges that
the economic growth rate of 5 percent and more achieved over the
decade is unlikely to last. The party sees a window within which
relatively high growth can be sustained while resources are directed
to more technically advanced and less labour-intensive industries,
and Irelands still backward infrastructure improved.
Fianna Fail promises to adhere to the recently published National
Development Plana perspectives document to defend the Irish
economy put together over the last months with the agreement of
business and the trade unions.
Fine Gael, and its potential coalition party, the Labour Party,
put forward exactly the same agenda. Both call for sound and prudent
management of the economy, code for low public spending, 12.5
percent corporation tax and defence of the National Development
Plan. Both call for new tax breaks for Irish business, oppose
European tax harmonisation, and are looking to relieve the regulatory
burden on corporate profit- making.
All four parties couch the economic core of their manifestos
inside documents in which the parties traditional constituencies
are offered adjustments and concessions. Fianna Fail, allied to
property and building interests, outlines a long list of building
projects. Similarly, the Progressive Democrats propose a host
of building projects and come down particularly in favour of a
new port for Dublin, releasing the current city port to be further
developed as a financial centre. Fine Gael calls for more police
and less immigration, while Labour does the same while presenting
this as part of a Fair Society based on the
necessity to build a new platform of competitive advantage for
Ireland.
All the parties acknowledge the need to sustain the housing
boom without impinging on the interests of the property developers
or banks. Most propose lifting stamp dutya tax on house
sales. In March 2007, the average house price in Dublin was an
astronomical 429,151, 265,767 in the regions.
To the extent that the Greens, mooted as potential partners
of both Fine Gael and Labour, have any differences with the major
parties, it is only that more attention should be devoted to clean
energy-related industries. The partys manifesto dodges the
issue of corporation tax by suggesting only that measures be taken
to support indigenous companies, particularly those with green
credentials, and that tax loopholes should be closed.
For its part, Sinn Fein, having finally entered government
in Northern Ireland alongside Ian Paisleys Democratic Unionist
Party, has spent the last few weeks dropping previous promises
to increase corporation tax. Gerry Adamss party, preparing
the ground for possible coalition talks with Fianna Fail, now
concedes that corporation tax would not be altered, although the
rest of the tax system should be re-examined to accelerate the
economic integration of North and South.
Given the unanimity on fundamentals, the election campaign
has largely focussed on the personalities and political experience
of the prospective coalition leadersFianna Fails Bertie
Ahern and Fine Gaels Enda Kenny, and on the details of coalition
combinations.
Fianna Fail, for months falling in the polls due to deep distrust
in the working class over corruption and frustration over huge
levels of social inequality, has in the last week recovered a
little due to Aherns association with the re-establishment
of power-sharing in Northern Ireland.
Ahern shook hands with Northern Irelands First Minister
Ian Paisley at the site of the battle of the Boyne in 1690hallowed
ground in Ulster Protestant mythology. Days later, he addressed
the Westminster parliament of Irelands former colonial power,
the first Irish premier ever to do so.
Aherns pose as an international statesman served to distract
attention from the continuing exposure of his financial relations
with building contractors dating back to the period when he was
former Taoiseach Charles Haugheys right-hand man. Ahern
had been forced into making a statement that he had no knowledge
of the disappearance of documents relating to his Dublin house,
and that payments made into his personal bank account were legitimate.
The statement follows the so-called Bertiegate scandal
last year, in which further alleged payments to Ahern came to
light.
By contrast, Enda Kenny is little known outside Ireland, and
much media attention has focussed on his lack of political experience.
While not implicated in the scandals of the Haughey era, Kenny
is considered to be rather ineffectual in comparison with Ahern.
He was deemed by media commentators to have lost the TV debates
between the two.
But class questions cannot be entirely excluded. Reports of
Aherns election walkabouts suggest that deep tensions are
lying just beneath the surface of political life. When Ahern visited
the town of Galway, he was asked by a passer-by if there was any
chance of a brown envelope [bribe money]. A woman called
from her car, You make me sick...with your brown envelopes.
Liam Lawlor was the same...you dont care about the working
class. Lawlor was a Fianna Fail politician jailed repeatedly
for corruption and contempt of court, who died in a Moscow car
accident.
In Dublin, Fianna Fail members of parliament were repeatedly
confronted with working people pressed over the cost of living.
The Sunday Business Post was forced to concede that due
to rising costsparticularly housingreal pay has increased
very little despite the huge wealth being extracted from Irish
workers. Fianna Fail is most under pressure in Dublin.
This will not produce any change in policy. The same newspaper
on May 20 ran an article, Exposing the pressure points on
economic policy, in which all the parties were questioned
as to what would happen to their spending promises if growth rates
stagnated or fell. All agreed that public spending would have
to fall, while all placed differing emphasis on which part of
spending would bear the brunt of cuts.
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