TAOISEACH MICHEÁL MARTIN has poured cold water over proposals to reduce the threshold for the amount of money people can leave to their children tax-free.
Speaking to reporters at the Fianna Fáil think-in meeting in Mullingar, he said he did not think there was an appetite for such a proposal, stating there is also an issue with the fairness of the measure.
It has been reported that the Commission on Taxation and Welfare put forward the idea in a report on changes to the tax system which is due to be published this week.
“I don’t believe there’s an appetite in Government to reduce that threshold,” he said, stating that many families would be disadvantaged by such a move.
The Taoiseach said he would have concerns about saying to people ‘you’ve worked all your life, you’ve bought your house, but no, actually, we want to take more off you when you die. And you can’t leave it to your family members’”.
Martin said he would read the report from the Commission in its entirety, but that ultimately it was Government who would make a decision.
Under the current rules, children are able to inherit €335,000 from their parents before they have to pay tax at 33%.
Budget two weeks away
Separately, speaking about the budget, which is just two weeks away, Martin said the Government will move to protect people with a cost-of-living package.
He said we are now looking at price increases in energy , the likes which have never been seen before “even in the terrible crisis of the 70s”.
He said the high prices are impacting on people’s livelihoods, their household disposable incomes and are also threatening businesses and jobs.
‘The budget will bring in measures to alleviate the pressures on people insofar as we can,” said the Taoiseach.
Families with children will be a particular focus in the budget, said the Taoiseach, who said it will include a sustained improvement in childcare.
Negotiations around pay for workers in childcare have now concluded with significant improvements which will result in improved affordability, he said.
Robert Troy
The Taoiseach was flanked by former minister of state Robert Troy, whose constituency the party think-in is taking place today.
Troy resigned as Minister of State for Trade Promotion last month, but remains on as a Fianna Fáil TD for Longford-Westmeath.
His resignation followed two weeks of growing controversy following the initial publishing of an article on The Ditch website which said that Troy had failed to declare his sale of a Mullingar property to Westmeath County Council.
Speaking to reporters today, Troy said he will “most certainly” run in the next General Election. He also said he is happy to answer questions in the Dáil about the controversy when politicians return to Leinster House on Wednesday after their summer break.
Today’s party think-in comes after a summer of discontent among some of the Fianna Fáil backbenchers.
A number of politicians have spoken out publicly about Martin’s leadership and the direction of the party.
John McGuinness, TD for Carlow-Kilkenny said recently Micheál Martin should resign as party leader as he steps down from the role of Taoiseach at the end of the year.
Some in Fianna Fáil’s parliamentary party are becoming “anxious” about how close it is to Fine Gael, said McGuinness. Others in the party have also raised concerns.
A meeting was held a number of months ago between a group of 30 TDs and Senators to discuss the future of the party.
Despite the request for a meeting on how the party plans to appeal to the electorate in the local elections, no time was allocated for such a discussion at the party think-in, much to the frustration of many.
A number of sources within Fianna Fáil previously The Journal privately that Martin is not taking backbenchers in his party seriously, that he is making a virtue of ignoring the parliamentary party, and that members are “completely demoralised”.
When asked about the issues within the party today, Martin said:
“We are focused on issues. Housing, we’re focused on the health issues, we’re focused on a whole range of of issues that matter to people. The cost of living being the number one issue.”
Party tensions
Martin denied the party had an issue with identity, and defended the think-in today not addressing matters relating to the local elections, stating that the majority of the parliamentary party wanted to focus on the issues.
“What people want is the party to be focused on the issues that matter to people. People out there are not that impressed with excessive navel gazing, or excessive internal analysing and so on. They’re not impressed by that. They want their politicians to focus on the issues that matter to them,” he told reporters.
Separately, the Taoiseach was also asked about the sacking of TD Barry Cowen as Agriculture Minister in 2020.
Cowen came under fire after it emerged he was issued with a three-month driving ban in 2016 for being over the legal alcohol limit.
The Taoiseach later told the Dáil that he had advised the President to terminate Cowen’s appointment as a government minister.
At the time, the Offaly TD reacted to his removal as minister by stating that he was surprised and disappointed with this decision, stating that at no time did he attempt to evade the gardaí at the checkpoint in 2016: “Had I done so, the charges brought against me would, quite correctly, have been of a different tenor to those,” he said.
It was reported at the weekend that a Garda Siochana Ombudsman Commission report has found Cowen did not seek to avoid a Garda checkpoint 2016. Speaking about the report today, Martin said his decision to remove Cowen from Cabinet was about his failure to be held to account by the Dáil.
“But the decision taken at the time was not in respect of GSOC at all,” Martin said.
He rejected the charge that he failed to allow due process to occur, stating that ministers have to be responsible to the Dáil.
“Barry and I may disagree. There are issues that I’ve been pretty consistent on that nobody could be happy about in terms of the release of personal information pertaining to Barry at the time. I wasn’t happy about that,” he said.
The Taoiseach said he looked forward to seeing the GSOC report.
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