The Minister for Social, Community and Family Affairs has labelled Labour's new economic policy "disastrous news" for low and middle income earners. Dermot Ahern said that the "New Direction, New Priorities" document is "riddled with basic errors" and would impact heavily on low and middle income earners, should Labour be returned to government. Attacking what he described as the "ten basic flaws" of the document, Mr Ahern said that the Labour party lacked a cohesive strategy for their proposed investment of an extra £3b of exchequer funding. He said that this "startling omission" lays the foundations to undermine Ireland's booming economy.
Earlier the Labour party proposed an extra £3 billion in government spending over the next three years, to tackle problems in housing, health, childcare, education and public transport. In a policy document published this afternoon, the party said that the money would mostly come from the wealth generated by the success of the economy and would not involve any increase in taxation. Labour said that it would shift the priority away from cutting taxes at the expense of the public services. And while it is committed to the tax provisions of the PPF, it believes that the process of reducing the overall tax burden as a share of national income, has reached its limit.