McCreevy Defends Ireland’s Low Tax Policies

by Jason Gorringe, Tax-News.com, London

29 June 2004

Responding to recent criticism of the government’s economic management, Minister for Finance Charlie McCreevy last week declared that Ireland’s recent economic prosperity was due to a policy of low taxation.

Addressing executives at pharmaceutical firm Wyeth Medica last week, Mr McCreevy argued that the government’s employment-friendly tax policies “have been the key to our recent economic success.”

"Our low-tax strategy has paid huge dividends and is, I am certain, strongly supported by the Irish people, as evidenced by the results of the last general election when the economy and its management were central campaign issues," noted McCreevy.

His comments came in the wake of concerns from certain Fianna Fail bankbenchers that the government’s tight fiscal policy had lost it ground in the recent European Parliament elections. These fears were voiced by Minister for Communications, Dermot Ahern, who spoke of the consequences of “unbridled market forces” on Ireland.

However, McCreevy brushed off this dissent and countered by arguing that low tax policies have the overwhelming support of the populace, citing an opinion poll taken last autumn in which only 9% of respondents favoured raising taxes to tackle the budget deficit.

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