Hayes accuses FF of 'crass hypocrisy' over Budget call
A Government Minister is accusing Fianna Fáil of being hypocritical for criticising the Government for proposing to increase VAT in December's Budget.
Brian Hayes' comments come after the Fianna Fáil Leader Micheál Martin called on the Government to fast track the publication of the Budget, after details were leaked to the German Parliament last week.
The Taoiseach Enda Kenny has defended the proposal, saying the VAT rate would be increased as “an alternative to raising income tax”.
Mr Kenny said the new VAT rate of 23% will not apply to food, children's clothing or services, but to goods which people make a choice to buy.
Junior Minister Brian Hayes said the Budget will be published as planned on December 6, and that the proposal to increase the VAT rate should not come as a surprise to anyone.
Hayes said: “For Fianna Fáil or anyone else to be criticising the Government is extraordinary hypocrisy.
“It was in the memorandum of understanding that the previous government outlined with the Troika. It was in our manifesto at the last election, it was in our pre-Budget submission last year. Only three weeks ago, the Minister for Finance mentioned it at a press conference.
“The suggestion that has been put out there that this is some big secret that someone has stumbled upon in the Bundestag is just crass hypocrisy.”
However, Mr Martin has hit back saying the plan his Government had agreed with the Troika did not include a plan to increase the VAT by 2% in 2012.
He said the Government are making a big mistake if they implement this proposal.
Mr Martin said: “The Programme that we signed off, that was three months before the General Election, and which they had ample time to go through, did not provide for a VAT increase in 2012. It did provide for 1% in 2013 and 1% in 2014.
“We do need to keep evaluating it, because the Troika made it clear to us, even in Opposition, that really it is a matter for the Government to decide how it gets to the final figure of 8.6% and that choices exist within the framework.”
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