Fine Gael TDs fear 'prudent Paschal' will cost them seats 

Tensions continue to simmer between the Coalition partners after three Fine Gael junior ministers publicly called for a tax cut in the next budget. They advocated for a full-time worker being paid €52,000 to get €1,000 back in tax relief.

However, those who have worked closely with the public expenditure minister are expressing frustration over how “rigid” he is, and claim his decision-making cost Fine Gael up to six seats in the last general election.

It comes as the latest Business Post/Red C poll puts Fine Gael at 20%, down two points — the party’s lowest poll rating since last September.

Several party sources told the Irish Examiner that Mr Donohoe cannot afford to be too cautious in the months ahead.

One warned that Finance Minister Michael McGrath will have “something up his sleeve” on budget day in relation to tax, which Fine Gael would see as one of its key policy territories.

“McGrath is going to want to put a tax stamp on it — he’s the first Fianna Fáil finance minister [since 2011], he’s going to want to do something,” said one source.

Holding purse strings too tight

Fine Gael senators and TDs described Mr Donohoe as “aloof” and being too cautious with the purse strings, and say they no longer approach him for funding for local projects.

“I wouldn’t go to Paschal any more,” said one party source. “I’d be wasting my time going to him for any sort of funding for a local project. You’d swear it was his own money, the way he carries on.”

Another noted that Mr Donohoe could “find money to deal with covid, when really some of that money should have been spent before the last election”.

There are plenty within the party that aren’t pleased about it. It has happened in the last two elections. You would have gone to Paschal looking for money for local projects that would have secured extra votes, but he is prudent beyond belief.

Another said Mr Donohoe “was born and bred in a period of time that he had to be cautious with spending, but he hasn’t moved into the next phase.

“Fianna Fáil are cute, they always play the game, they’re never shy of opening up the chequebook.”

One Government source said it was “very easy” to deal with Mr McGrath in Public Expenditure, saying that he was political in deciding how to allocate funds or making decisions.

In contrast, it was suggested that Mr Donohoe can be influenced by civil servants who tend to be more conservative in terms of spending.

Another Fine Gael politician said there is “an inherent fear that Paschal is reserved” and will continue this approach when it comes to the autumn budget, despite the fact the Government will have a significant tax take to play with.

“There is a feeling that we have to push the boat out,” said one politician, adding that this approach may face pushback from Mr Donohoe.

Meanwhile, Fianna Fáil TD Barry Cowen has criticised Taoiseach Leo Varadkar after he defended three of his party’s junior ministers calling for tax cuts.

Mr Cowen said the Taoiseach and its office “should be above party politics” and he should have called a halt to the “posturing”.

“It’s pure electioneering,” said Mr Cowen.

“I think from a Fianna Fáil perspective, we have to ensure that the public aren’t persuaded by Fine Gael into thinking that there’s a power struggle within the government to deliver on a tax package,” Mr Cowen told RTÉ's This Week programme.