Simon Harris described the abolition of the “hated USC” as an “absolute commitment” of Fine Gael just weeks before the party entered government following the 2016 General Election.
Speaking on RTÉ Radio 1’s This Week programme on February 7th 2016, then-Minister of State at the Department of Finance Simon Harris said Fine Gael had a “credible commitment” to phase out the Universal Social Charge over the lifetime of the next government.
Harris argued that the party’s economic plans would allow it to continue reducing taxes while still maintaining economic and job growth, even in the event of an international downturn.
“We are very convinced that if we continue with our [economic] plan we will be able to deliver on it,” Harris said.
“We have built into our long-term economic plan which we launched this week – myself, Michael Noonan and the Taoiseach – that even if there is a global shock to the economy in 2017 that would reduce global rates by 2%, we will continue to actually see economic growth and job growth in this country.”
Harris also defended Fine Gael’s proposals on reducing the USC, saying the party was not promising immediate abolition.
“We’ve been quite modest in how we intend to deliver our tax cuts – we’re not saying we’re going to get rid of the USC overnight. We’re saying it’s something that will take the full 5 years of the next Government.”
He said the commitment was achievable because of improving employment figures during the post-crash recovery period.
“And it’s a very credible commitment we can make, because we’re getting people back to work,” Harris continued.
The Fine Gael politician went on to describe the abolition of the USC as a central election pledge for the party ahead of polling day later that month.
“Our absolute commitment going into this election is the abolition of the hated USC,” Harris said.
“It was a temporary measure, it was an emergency measure. If we want recovery to be felt behind every household, every home and every family, we need to abolish it.”
Fine Gael ultimately won 76 seats in the 2016 General Election and later formed a minority government.
The remarks have resurfaced amid renewed debate around potential USC reductions ahead of the next Budget.
As reported by RTÉ this week, Taoiseach Micheál Martin said it was “too early” to say whether cuts to the USC would form part of the Government’s budgetary plans.
Speaking to reporters, the Fianna Fáil Taoiseach said the Government was examining different ways of easing cost-of-living pressures arising from instability in the Middle East.
“There was many instruments and mechanisms they could use to reduce costs on people, including tax,” Martin said, according to RTÉ.
He added that any decisions would need to be discussed between the coalition parties and the relevant ministers before the Budget process concludes.