Cliff Taylor: The Government parties, with an exchequer flush with cash, are struggling to respond to the populist agenda which demands that people faced with extra bills should get a dig-out.
Sinn Féin is again seen to be in advance of the game on policy, and can still use the “not enough” tactic when the move is announced.but applied retrospectively to 2022. Sinn Féin had supported this as part of a rental package, but dismissed the credit as not being generous enough and not being in the required context of a rental freeze.
Irish politics, unlike in many other countries, is being framed by a period of extraordinary plenty in the public finances. For now, this has removed the pressure to make difficult choices. Giving a general handout via a restoration of full mortgage interest relief at a time when the economy is at full capacity and many households can cope is not justified. Targeting relief at those who do really need it is complicated, though worth considering. In an environment where people feel the State should step in at every turn, it is politically tricky for the Coalition.
The general trend to spend more public money attacking problems such as housing again plays into the hands of Sinn Féin, a long-time supporter of more State involvement in the economy. The knotty issues here are how to tackle the State’s inability to make progress quickly – a problem in the public service, planning, the courts, regulation and so on.
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