Labour says PD privatisation plan 'not credible'

The Labour Party has today criticised the Progressive Democrats (PD) plan to sell State assets to fund economic growth as "simply…

The Labour Party has today criticised the Progressive Democrats (PD) plan to sell State assets to fund economic growth as "simply not credible".

Announcing her party’s general election manifesto yesterday, the Tánaiste Ms Mary Harney, pledged to sell off the ESB, Aer Lingus and Bord Gáis.

She also promised to cut the top tax rate, increase capital spending on infrastructure and health and use surplus Central Bank funds and borrowed money to fund a €40 billion capital spending programme over the next five years.

But Labour spokesman on finance Mr Derek McDowell said the PDs had "at least conceded that additional revenue sources are needed to pay for the National Health Strategy and National Development Plan [NDP] - something FF have denied".

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"While the PDs have exaggerated the size of their capital programme," he said, "there is now a clear onus on Fianna Fáil to set out how it will pay for both these programmes and whether it supports the position being adopted by the Progressive Democrats on privatisation".

Fianna Fáil has said it will not borrow or increase taxation, despite its recent announcement it will provide more gardaí, better pensions, more education funding and major improvements in the health system under the National Health Strategy should it return to government.

Fianna Fáil was unavailable for comment.

The Labour Party said the Progressive Democrat Party’s manifesto, "confirmed" that additional funding is necessary to pay for the NDP and the NHS.