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28 October 2010

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Sinn Féin the only opposition to Consensus for Cuts

BY MÍCHEÁL Mac DONNCHA

IT ALL BEGAN with a statement from Green Party leader and Environment Minister John Gormley that he was going to invite the party leaders in the Dáil to seek a consensus on the economy. It looked like a plea from the Greens for a group hug as they faced the prospect of imposing a savage budget with their senior coalition partners in Fianna Fáil.
But, as it turned out, it developed into a political manoeuvre which has exposed Fine Gael and the Labour Party as following the same doomed economic strategy as the Fianna Fáil/Green Coalition.
All these parties back the EU-imposed deadline of reducing the 26-County budget deficit to 3% by 2014. The timeframe involved and the slash and burn approach to reaching this target is set to deepen the recession and cause huge hardship in Irish society.
Sinn Féin now stands alone among the Dáil parties in opposing this deadline and the budgetary approach of the Fianna Fáil/Green/ Fine Gael/Labour ‘Consensus for Cuts’. But Sinn Féin is not alone in the country because it concurs with the Irish Congress of Trade Unions and the unions affiliated to it, community and voluntary organisations, a range of economists, and the Economic and Social Research Institute.
Already there is disquiet in the ranks of the Labour Party that their leadership has joined this consensus and they are feeling vulnerable to attack from Sinn Féin.
The clear alignment of Sinn Féin versus the Consensus for Cuts has made efforts by some of the media to exclude Sinn Féin look glaring. Notable in this regard was The Irish Times of October 21st which completely blanked Sinn Féin’s response to the meeting of the Consensus for Cuts in Government Buildings the previous day.
The story began on October 7th when Green Party leader and Environment Minister John Gormley said he would be inviting the party leaders to talks to seek a consensus. Sinn Féin Social Protection spokesperson Aengus Ó Snodaigh said republicans would not be part of a consensus for “savage cuts, further deflation and unemployment”.
“The last such ‘consensus’ we had was when Fianna Fáil, Fine Gael, Labour and the Greens joined together to support the second Lisbon Treaty referendum, asking people to ‘Vote Yes for Jobs’. Where are the jobs?”
Ó Snodaigh said that Sinn Féin recognises that the deficit caused by the disastrous policies of the Government has to be reduced. But the plan to reduce it by 2014 by imposing savage cuts is wrong. He said:
“This plan will cause huge hardship by cutting vital public services and social supports - health, education and social welfare. We are against cuts to public services and social supports but for eliminating wasteful public spending where it exists. We want a realistic deficit reduction strategy based on a fairer tax system and investing in jobs.”
On October 11th, John Gormley wrote to Sinn Féin Dáil leader Caoimhghín Ó Caoláin, signalling a meeting “without preconditions” (see Caoimhghín Ó Caoláin’s reply on this page). After initially appearing cold on the idea of a meeting of party leaders, Taoiseach Brian Cowen indicated his agreement. He then issued letters to all the party leaders - except Sinn Féin.
Confirming that he had received no invitation to the talks, Caoimhghín Ó Caoláin said:
“In his letter to me on October 11th, Green Party leader John Gormley spoke of talks involving all parties and, allegedly, without pre-conditions. Now we have the Taoiseach writing only to Fine Gael and Labour, thus exposing John Gormley’s initiative as a sham.
“The real consensus that has emerged is between Fianna Fáil, Fine Gael, the Greens and Labour - a political conspiracy to impose savage cuts. In contrast, Sinn Féin will stand with communities against the cuts, for jobs and for real recovery.”
Cowen, Gormley, Kenny and Gilmore duly met on October 20th in Government Buildings, with a Sinn Féin protest outside. They reached no new agreement but their Consensus for Cuts stands. Sinn Féin Finance spokesperson Arthur Morgan concluded:
“There is an alternative to the Consensus for Cuts and people realise this. Sinn Féin wants all those who believe there is a better, fairer way forward to form an alternative economic consensus to the Establishment political parties. We are also asking people to come onto the streets of Dublin on December 4th and to make a stand for a better way.”

Sinn Féin’s reply to John Gormley

John, a chara,
Your letter to me of 11 October seeks a consensus on your Government’s as yet unpublished four-year budgetary plan to be submitted to the European Commission. You state that “most parties have made clear their commitment to achieving a 3% deficit to GDP ratio by 2014” and you describe this as “the key target that now needs to be reached”.
Let me make clear that Sinn Féin, unlike Fine Gael and Labour and your Government, is not committed to a 3% deficit target by 2014. We believe that attempting to reach such a target will further deflate the economy and deepen the recession. It would involve even more savage cuts to vital public services and attacks on the livelihoods of people struggling on low to middle incomes.
We accept that the deficit needs to be reduced but over a longer timeframe and as part of an economic strategy that raises revenue, makes savings and, crucially, provides real stimulus to the economy. The target of this strategy would not be a number decided in Brussels but a reduction in the real measure of recession in Ireland - unemployment which stands at 450,000.
We will shortly publish our pre-budget proposals which will set out our strategy in detail. It will contain many constructive suggestions on the way forward.
Sinn Féin is open at all times to meaningful political engagement. We will consider a meeting of parties - provided it is indeed without preconditions. However, we will not be part of a consensus based on the 3% by 2014 budgetary strategy.
Is mise
CAOIMHGHÍN Ó CAOLÁIN TD
Ceannaire Dála Shinn Féin.

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