FINE GAEL 								53520.1982.11 Priorities ELECTION 1982 November WHAT THIS ELECTION IS ABOUT There are two central issues in this Election.  The first relates to the credibility of different parties as potential governments. The second relates to differences in policy between Fianna Fail and Fine Gael not of course over the whole field of policy, for there are inevitably many issues or which there is substantial agreement - but rather about a number of key issues. DIFFERENCES IN CREDIBILITY The question of credibility can be dealt with briefly: it is a clear-cut issue.  Fine Gael offers a team under leadership respected outside Ireland as well as in Northern Ireland and within the State.  It has held to consistent policies in relation to Northern Ireland as well as in economic and social areas. Since 1977, when Fianna Fail set off inflation and public overspending Fine Gael has consistently warned against this approach. In the June 1981 Election Fine Gael made it clear that the spending splurge had to be brought to an end, though it was only after that Election that we discovered the financial situation to be worse even than we had envisaged. Between June 1981 and January 1982 Fine Gael explained just how bad things were following the previous four years of mismanagement, and brought in two Budgets which between them reduced Exchequer borrowing by one-third, and over-spending on the current Budget by half. Although sustained by an increased popular vote in the post-Budget election, a shift in the balance amongst the Workers' Party and Independents brought Fianna Fail to power.  Fine Gael continued to assert that the financial crisis had to be tackled and refused to be diverted from this course by promises of soft options and "boom and bloom". By contrast Fianna Fail: 1. Launched us on the course to disaster by their free spending policies after 1977. 2. Allowed the public service pay bill to get completely out of control in 1980, when it rose by 34% in a single year. 3. Suppressed the truth about the cost of Government in the Estimates of Public Expenditure it published at the beginning of 1981. 4. Undertook five policy U-turns: (1) The announcement of a retrenchment policy by the Taoiseach, Mr. Haughey, in his television address of January 1980. (2) The abandonment of this policy within weeks with a reversion to free spending, the consequences of which were sought to be covered up by, the incomplete disclosure of spending needs in the 1981 Estimates. (3) A reluctant and incomplete conversion to the need to cut over-spending during the February Election this year. (4) The announcement, after the election, that this tight control was no longer necessary because a period of "boom and bloom" had begun. (5) The enforcement of drastic spending cuts as, panic measure at the end of July last when the Dail had gone into recess.  Some of these, like the attempt to go back on the 5% final phase of the public service pay agreement rebounded in the Government's face, and others of which showed gross insensitivity, such as the withdrawal of 900 drugs from medical card holders, while leaving them available to better off people covered by the Drugs Refund Scheme. The people have a clear choice: (a) a Fine Gael Government whose record has shown that they tell the truth, regardless of unpopularity; are prepared to act regardless of whether this may threaten their part interest; and are consistent in their approach and (b) a Fianna Fail Government which has suppressed the truth about our financial problems; has repeatedly backed off the action needed to tackle our grave problem; and has completed five U- turns in less than three years. It is a clear-cut choice. DIFFERENCES IN POLICY BETWEEN THE PARTIES First of all it must be said at the outset that Fine Gael and Fianna Fail do not disagree about everything.  It would be irresponsible, merely for the sake of making a false contrast during an election contest, to pretend that there is not common ground, although, for reasons just mentioned, there cannot be certainty that Fianna Fail, with their record of U-turns, will hold to that common ground. This common ground includes: 1. Agreement that the biggest social-economic problem, to whose solution everything else must take second place, is unemployment. 2. Agreement, even if belated and unreliable in the case of Fianna Fail, that the gap between government revenue and spending must be cut, and that the two must be brought into line with each other over the next four years. 3. Agreement that the main brunt of this task must be borne by cuts in spending, rather than by increases in taxation, though taxation will have to bear its share, and particularly taxation of capital, profits, and self-employed, farmers and V.A.T., with relief for P. A. Y. E. 4. Broad agreement on the scale of the economic problem to be tackled. 5. Agreement that the tackling of crime is a major priority. The differences between Fine Gael and Fianna Fail include: In the economic and social area - 1. Sharp differences in respect of other aspects of economic policy, including the rate at which inflation has to be reduced and the industrial and agricultural policies to be followed.  2. Differences in respect of the priority to be given to ensuring social justice and equity especially in a period when both parties agree that average living standards will drop slightly rather than rise.  3. Consequential differences in policy with respect of taxation. 4. Differences whether our present and administrative institutions, unreformed, have the capacity to tackle problems of this magnitude. In other areas 1. The need to take radical steps to make effective the work of the Police in tackling crime and in freeing the Police from the reality and the suspicion of political interference. 2. The need to tackle at their roots the problems of poverty which affect something like a quarter of our people. 3. The need to give youth a full role as a social partner on an equal footing with trade unions, employers and farmers, in consultations with government on the formulation of national policies to tackle problems such as unemployment - which young people have a primary interest, not reflected in the structures operated by the present Government. 4. The need to eliminate grave defects in our present arrangements for plane and re-zoning.  5. The need to ensure that thestandards of political life are not only raised, but seen to be raised to a level compatible with our people's expectations concerning their political leaders. 6. The need to give priority to the development of the West.  7. The need to end continuing discrimination against women.  8. Finally, the need to reestablish the working relationship with the British Government (which has been almost fatally damaged by the present Government) with a view to putting to that Government, with some prospect of success, a radical approach to breaking the tragic deadlock in Northern Ireland. ECONOMIC AND SOCIAL POLICY A.UNEMPLOYMENT The central concern of Fine Gael's economic strategy is to alleviate this problem. Fine Gael has set out detailed measures to combat the unemployment problemin "Jobs in the Eighties" These have been prepared in the recognition that employment can be safeguarded only in the context of overall improvements in the efficiency of our economy.  Among the specific measures are the following:  1. Fine Gael recognises that the expansion of output and unemployment can be advanced by detailed industry by industry discussions and planning rather than by unplanned involvement by the State.  To this end Fine Gael intends to set up Sectoral Committees for each sector of industry to improve the flow of information between firms, to explore joint ventures especially in marketing and to avoid, by corrective action, job losses and factory closures. 2. To co-ordinate and plan properly the role of the State in the industrial area Fine Gael will set up in government a cabinet-rank Production Task Force of Ministers, the purpose of which will be to streamline and simplify the range of State agencies which currently provide assistance to Irish Industry, to breakdown constraints and bottlenecks which inhibit efficiency and modernisation and to plan a rational investment strategy. 3. Of vital importance to the development of industry is the question of savings and their channelling to productive use. In this regard Fine Gael in government proposes to encourage the setting up of Venture Capital Agencies to channel savings, especially the funds of financial institutions, to the maximum productive use in areas of the economy which would otherwise be starved of capital. 4. Special Package for small firms including seeking a simplified tax regime. 5. National Development Corporation which will amongst other things set up strictly commercial enterprises geared to export.  Additionally a pilot job-sharing scheme will be introduced.  Fine Gael will continue the policy adopted by Dr. FitzGerald in Government through the involvement of Youth in consultation as a social partner.  The Youth Employment Agency which we established will be utilised for the additional schemes in "Jobs in the '80s". However, above all, Government will promote a consciousness that wages add to costs which in turn make our products less competitive and that it is only by reducing inflation, and through the exercise of restraint, that we can bring about an expansion of the economy.  Pay increases generally will be related to available revenue and productivity. B. INFLATION Fine Gael aims to secure a more rapid fall in inflation than that projected by Fianna Fail.  The Fianna Fail targets imply cost increases in the immediate and medium-term future that would leave our goods and services uncompetitive, and would make certain a further and continuing decline in purchasing power and employment. Fine Gael will set new targets for the reduction through the next four years.  The inflation target will be the subject of discussion with Unions and Management with a view to securing an orderly winding-down of the rate of income increases and price increases.  This reduction is possible; it was achieved by us in the mid seventies when the inflation rate was brought down by this process from 24% to less than 7%.  To ensure that increases in the retail prices of imports are held down to the now much reduced rate of increases in actual import prices, steps will be taken, by legislation to monitor and, if necessary, control import profit margins. Fine Gael have dealt in greater detail with this subject in our Policy Document "Jobs in the '80s".  The Government cannot rule by edict in this area, but can negotiate from a position of strength.  Fine Gael now looks for a mandate from the people, to negotiate to achieve the following aim: Interest groups must settle their arguments about income distribution without passing on inflationary burdens to the rest of the community. -  the management of public sector pay increases so that they are related to available revenue. - The introduction of mechanism to allow variation in pay increases related to productivity growth. - Fine Gael will also consider the appointment of an expert body to be established to bring to Government and public notice, trends in our relative competitiveness vis-a-vis other countries, and the need, in the interest of jobs, to keep the costs in this economy below those of our competitors. C. INDUSTRY Fine Gael accepts the broad thrust of the Telesis Report on Industrial Policy.  In particular, and in line with the Telesis recommendations, Fine Gael will place greater emphasis on wholly owned home-based export firms in disbursing state grants. In regard to grants to foreign companies priority will be given to those which will yield maximum advantage to the Irish economy in terms of the provision of skilled employment, supply linkages with Irish firms, and the setting up of a full range of operations especially marketing and research development. Fine Gael's industrial policy in government will give particular priority to the development of the food processing sector.  This will be achieved by encouraging long term contracts between suppliers and food processors and by establishing the new National Development Corporation which will have special responsibility for promoting new enterprises in this area. D. AGRICULTURE In agriculture, Fine Gael's aim is to secure real income increases for farm families and sustained growth in the volume of farm output. Farm income increases will be brought about by reducing inflation and securing the maximum rate of increase in prices at EEC level.  The alleviation of the present price/cost squeeze will in turn allow the volume of farm production to increase in a sustained manner.  This will produce expansion of output and employment in our food processing industries, leading to substantial export gains. This approach will also allow us to make progress reversing the inroads made in our market by imported food products.  Agricultural expansion must be a key component of future development since its import content is low and the scope for adding value and increasing employment in the food processing is enormous. We must therefore ensure that the maximum possible proportions of available development resources  is channelled into agriculture. It is only by consciously directing our resources in this way, that we can achieve the results we so urgently require. Fine Gael will pursue its policies in such a way as to restore solvency and to bring profit margins on our farms to reasonable levels.  It is only by doing this that we can bring a new impetus to farm development. The measures which we believe must be given priority are set out in our programme "Jobs in the '80s".  Such further measures will be defined in the framework of a four year development plan for the sector, which we will re-examine and define so that it corresponds to our principal objectives. SOCIAL AFFAIRS Fine Gael will ensure that the State provides for the Health and Welfare of those in greatest need.  Therefore we will protect them from the effects of expenditure cuts.  Fine Gael will develop community-based Health facilities and will introduce major directional changes and developments of Community Programmes. In regard to Care of the Child, especially of those in deprived social circumstances, and the Care of the Aged Fine Gael will seek to maximise the potential to keep them living within their own communities. Positive encouragement will be given to the development of voluntary agencies. Fine Gael will review the medical card system and the drugs refund schemes. Fine Gael proposes to review eligibility for Hospital Services for those with incomes in excess of F12,000 and private patients will pay more realistic fees for hospital back-up services.  In this context it is proposed to develop the Voluntary Health Insurance involvement in the provision of Health Services for the middle and higher in-care groups. In addition Fine Gael will implement necessary expenditure cuts in such a way as to relieve the least-well off from the adverse effects of these cuts, and to spread the burden equitably between people at the various income levels. Where charges for service have to be introduced, provision will be made, where possible, to relate these to means. TAXATION Fine Gael will gradually revise the taxation system and will increase its equity for example by - Substituting tax (which are of equal benefit to all) for tax allowances (which benefit better off people disproportionately and which give no relief to the lowest paid). Re-introducing a family income supplement for the low paid; and reducing PRSI on incomes below a figure of around F6,000 as proposed in our policy document "Jobs in the '80s". Fine Gael will further modify the tax system to increase the incentive to save.  In this connection it will sympathetically examine the Commission on Taxation's proposals.  In particular it proposes to give early consideration to an exemption from taxation of savings in the year in which the savings are effected.  The introduction of any change along these lines, will, however, have to be accompanied by measures to eliminate evasion of taxation.  We will reduce the disincentive to work that exists, at present in cases where after-tax income is as high as, or, in an important minority of cases even higher than, the after-tax income available to a person at work.  A first step in this direction will be the principle that income from all sources will be equally liable for taxation.  With regard to State benefits, this taxation will be applied to unemployment benefit, disability benefit and pay related benefit. Fine Gael will examine the imposition of V.A.T. at point of import.  Fine Gael strongly opposed this measure in the Dail and is aware of the serious damage that it is causing to industry.  We also recognise, however, that an advance commitment to do away with V.A.T. at point of import, immediately on returning to office, would have a very serious effect on the 1983 Current Budget Deficit.  The financial situation of the country is so serious that we cannot make a pre-election commitment which could have such a bad effect in a year when our finances, and indeed, our capacity to borrow, are already very precarious. Fine Gael will immediately on taking up office initiate discussions with the Confederation of Irish Industry and other importers' groups to work out the best possible way of dealing with this problem and if feasible having regard to the current Budget Deficit for 1983, reversing the existing policy. STRUCTURAL REFORM Fine Gael recognises the necessity to reform the structures of Government and the basic law of the State. The primary areas of reform will be: 1. The Dail and Senate. The proposals relate to the greater use of Committees, the broadcasting of proceedings and a longer sitting period.  Modification of the rules of Debate will be introduced to allow more detailed questioning of Government spending in particular.  Fine Gael in Government will further require that all members of the Oireachtas make a declaration of financial interests held directly or indirectly by them. 2. Public Sector. This will include the opening to competition of certain top Civil Service jobs together with facilitating movement from and to the Private Sector as well as providing incentives for initiative and endeavour.  The priority will be to ensure that a Civil Service Reform Act will be introduced. 3.	The Constitution. Fine Gael confirms its Policy to put the Anti-Abortion Constitutional Amendment before the people by the 31st March, 1983.  In addition Fine Gael will reactivate the Constitutional Review process which commenced during term of Office of the last Coalition Government. 4. The Government. It is recognised that the Government has functioned less efficiently in the past than might have been expected.  By concentrating Ministers' energies on policy development, rather than on administration, significant improvements can be achieved. 5. Fine Gael will provide for the appointment of an Independent Public Expenditure Commissioner who will report to an all-party committee of the Dail on the accuracy of Departmental Estimates and this will ensure that the public will never again be mislaid as to the reality of the state of the public finances. 2. OTHER POLICIES CRIME The extent of crime is indicative of the social  and economic difficulties facing our country.  Fine Gael recognises that the arrest, conviction and punishment of offenders cannot, and should not, be considered as the complete solution to a problem which is often the result of deprivation. With some categories of crime, law and order will not be re-established merely by getting tougher with criminals.  Only a two-pronged attack through reform and tackling poverty, taken in conjunction with more effective measures against crime can ultimately succeed. As a community we must, of course, deal with organised crime of the brutal and de-humanising kind which has become more and more prevalent in recent years and which is often but by no means always associated with illegal organisations. Fine Gael believes that our present resources for dealing with crime are seriously inadequate.  Clearly there are insufficient man-hours of police time available and applied to the task.  Clearly also our laws have defects which make life easy for the hardened criminal, difficult for the hard-pressed Gardai. Among the measures which will be introduced to increase the effectiveness of the criminal law will be the following: A provision enabling evidence to be given at a trial of questions put to an accused before a District Justice or quasi-judicial personage such as a Peace Commissioner, and the answers given, or refused, by the accused. A requirement that alibis to be advanced by the defence in a prosecution be notified to the prosecution a sufficient time in advance to enable them to be checked. A provision that offences committed when on bail must be separately dealt with, and, if proved, that they be the subject of a sentence separate from that given for the original offence. Fine Gael will also examine the possibility of introducing a provision which exists in some other countries viz. shifting the onus of proof to parents of juvenile offenders that they, the parents, are not responsible by their neglect, for such offences. At the same time Fine Gael will establish a Garda Authority to seal off the Gardai from political interference and will make provision for an independent complaints procedure in respect of actions by Gardai. A judicial enquiry will be initiated to investigate all allegations of political interference with the Gardai during the last two years. Fine Gael will set up a police reserve, along the lines of the F. C.A., to provide those concerned with inadequate policing in their areas an opportunity to assist in releasing the police for anti-crime activities by undertaking some of the other work which at present consumes available police man-hours. URBAN AFFAIRS Local authorities will be empowered by a Fine Gael Government to impose time limits within which developments must commence and be finished.  The Planning Acts will be amended to allow local authorities, in considering an application, to have regard to the previous history of developers and to refuse an application if the identity of the developer is such that, because of his previous conduct, the local authority has reasonable grounds to doubt whether the development will ever be finished in accordance with permission. Fine Gael proposes to introduce a special annual charge on derelict sites and properties in the developed areas of Dublin so as to discourage the running down of property awaiting redevelopment.  A Bill will be introduced to extend the consideration of the Draft Development Plan for Dublin to enable the preparation of legislation regarding the process of re-zoning, as called for by the Fine Gael Councillors. WESTERN DEVELOPMENT The particular needs of the West demand a specific approach in land policy, agriculture, tourism and industrial development.  Fine Gael will establish a Western Enterprise Agency that will be responsible for the development of the Connaught region. WOMEN'S RIGHTS Fine Gael in Government is committed to a comprehensive action programme to up-grade the status of women in the work place and at home. Fine Gael recognises that women have not yet achieved full equality in Irish society.  In Government Fine Gael will take steps to ensure that promotion in the Public Service is not more readily available to men than women.  Fine Gael will legislate to give both partners in marriage joint rights to the family home. Discrimination against women in the social welfare system will be eliminated. Fine Gael favours the extension of dental care to spouses of insured workers. The proposal will be examined in the light of its cost, and consequences for P.R.S.I. rates. A Minister of State for Women's Affairs will be appointed and an Oireachtas Committee on Women's issues - to examine and report on the needs of women in our society and to make recommendations for changes will be set up.  PAGE     PAGE   1