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INSIDE POLITICS
By Kevin Rafter



Labour breaks free on the tax front LAST weekend, Labour senator Derek McDowell predicted on Newstalk that the general election campaign would be fought on quality-of-life issues. But by Saturday evening, his party leader had reminded us all that it will be the economy, again, stupid. Health, crime and transport - with childcare and housing thrown in - will feature strongly in the studio interviews and in the doorstep discussions. But when it comes to the ballot box, the economy will be the main driver of how people vote. Michael Noonan discovered this reality - at a great political cost - in 2002. The voters are greedy - they wanted money in their own pockets. The economy is the subject on which Fianna FA il and PD advisers feel they have the strongest edge over the Fine Gael/Labour alternative.

But last weekend, Pat Rabbitte changed the conversation. With its new focus on cutting the lower tax rate from 20% to 18% by 2009, Rabbitte has plonked himself firmly in the space that Ahern and McDowell have in recent times considered theirs.

Not any more. As one observer wryly noted, Labour is now the PDs with heart! It will not be outflanked on tax, no matter what the PD leader has said over the last seven days. So now the discussion will move onto which alliance would best manage our economic prosperity over the next five years. Incumbency gives the current government an advantage. But if Rabbitte - who would be finance minister in any new arrangement - can convince during the campaign, then the issue may be up for grabs. Rabbitte's tax trick has also changed the dynamic within the alternative coalition. With the two parties concluding work on a key economic document, it might have been expected that their tax plans would be announced jointly. Yet Fine Gael was only briefed on Saturday that Labour was working alone on tax policy. No matter how warmly Fine Gael welcomed the news, Enda Kenny's party had been slapped across the face by its erstwhile submissive partner. After four years of being the junior partner in the alternative, Labour emerged with its own policy prescription to sell.

Fine Gael would do well to pay closer heed to its partner.

McDowell's high cost of truth MICHAEL McDOWELL may have lost the run of himself with his Euro1bn Mahon tribunal fees but the figure will easily be reached when the bills are paid for the various current inquiries. Up to the end of 2006, 16 different investigations into wrongdoing had cost the taxpayer almost Euro175m, with Mahon costing Euro59.4m, Moriarty Euro27.2m and Morris Euro28.6m. These amounts do not include third-party legal fees which will easily put the search for the truth close to Euro1bn.

Back in 1997, the McCracken tribunal cost Euro6.6m. The tribunal's legal team cost Euro865,193 (13% of the overall cost) while third-party legal fees came to Euro5.7m (85% of the overall cost). Taking those cost-ratios and applying them to the latest fees for Mahon means the tribunal's bills will ultimately reach Euro460m.

TDs spend maximum time on the hustings, evident from the upsurge in query-type parliamentary questions. Top prize goes to Fine Gael's John Perry, who last week asked the agriculture minister if she would "temper justice with mercy on the single payment entitlements of a person; and if she will make a statement on the matter". Mary Coughlan duly obliged. Payment for the Transfer of Entitlements under the 2006 Single Payment Scheme will be issued shortly. Justice, mercy and favours-politics, all rolled into one.

DA il dissolution is a minor detail MUCH of the speculation about the forthcoming general election has been couched in terms of Bertie Ahern coming back to the DA il after the two-week Easter recess to announce the dissolution of the DA il.

However, Ahern only has to toddle down from Drumcondra to the A ras to tell Mary McAleese what he has planned.

"DA il A ireann shall be summoned and dissolved by the President on the advice of the Taoiseach, " the constitution states.

Back in 2002, Ahern snuck into the DA il when the chamber was practically empty to announce that the general election was officially underway.

He might not even bother this time, with the contest officially starting before the end of the Easter recess and polling day on Thursday 3 May before the bank holiday weekend.




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