Charlie McCreevy

Charles McCreevy (born 30 September 1949) is an Irish former Fianna Fáil politician who served as European Commissioner for Internal Market and Services from 2004 to 2010, Minister for Finance from 1997 to 2004, Minister for Tourism and Trade from 1993 to 1994 and Minister for Social Welfare from 1992 to 1993.

He served as a Teachta Dála (TD) for the Kildare constituency (and later the Kildare North constituency) from 1977 to 2004.

When McCreevy resigned his Dáil seat on his appointment to the European Commission, his son, Charlie Jnr, declined the opportunity to be the Fianna Fáil candidate in the resulting by-election.

The seat was won by the independent candidate, Catherine Murphy.

Born in Sallins, County Kildare, McCreevy was educated locally at Naas by the Congregation of Christian Brothers at Naas C.B.S., and later at Gormanston College.

He studied commerce at University College Dublin and went on to become a chartered accountant.

His political career began with when he won a seat in the Kildare constituency at the 1977 general election, which was a landslide for Charles Haughey's supporters in Fianna Fáil and he was re-elected at every subsequent election until he joined the European Commission.

Between 1979 and 1985, he served as an elected member of the Kildare County Council.

In the December 1979, Fianna Fáil leadership contest, McCreevy strongly supported the controversial Charles Haughey, who narrowly won the post.

However, in a time of severe budgetary difficulties for Ireland, McCreevy soon became disillusioned with the new Taoiseach and his fiscal policies.

In October 1982, McCreevy launched a motion of no-confidence in the party leader, which evolved into a leadership challenge by Desmond O'Malley.

In an open ballot and supported by only 21 of his 79 colleagues (known as the "Gang of 22"), the motion failed and McCreevy was temporarily expelled from the parliamentary party.

In later years O'Malley was expelled from Fianna Fáil itself and formed the Progressive Democrats (PDs), espousing conservative fiscal policies.

Although considered ideologically close to the PDs, and a personal friend of its erstwhile leader, Mary Harney, McCreevy chose to remain a member of Fianna Fáil, where he would eventually serve in joint FF-PD Governments.

For his first 15 years as TD, while Haughey remained leader, McCreevy remained a backbencher.

In 1992, Albert Reynolds became Taoiseach and McCreevy was appointed Minister for Social Welfare.

In this role, he is principally remembered for a set of 12 cost-cutting measures, collectively termed the "dirty dozen", which were arguably minor in their direct impact but provided a major political headache for his party in the 1992 general election.

In 1993, he became Minister for Tourism and Trade, which he held until the government fell in December 1994.

In opposition under new Fianna Fáil leader Bertie Ahern, McCreevy was appointed Opposition Spokesperson for Finance.

In this role he was viewed as actively pro-enterprise, anti-spending and a key advocate for tax cuts.

In 1997, Fianna Fáil returned to power and McCreevy became Minister for Finance.

His period coincided with the era of the "Celtic Tiger", which saw the rapid growth of the Irish economy due to social partnership between employers, government and unions; increased female participation in the labour force, decades of tuition-free secondary education; targeting of foreign (primarily U.S.) direct investment; a low corporation tax rate; an English-speaking workforce only five time-zones from New York, and membership of the European Union – which provided payments for infrastructural development, export access to the Single Market and a Eurozone country.

McCreevy was a consistent advocate of cutting taxes and spending.

As Minister for Finance, he had an opportunity to implement these policies.

During his term in Finance, he made many changes to simplify the tax system and presided over Ireland's entry to Economic and Monetary Union of the European Union and later, the changeover to the Euro.

He maintained a significant surplus during his seven years in Finance by forecasting tax takes which were lower than average.

He simultaneously implemented a tax-cutting programme, major increases in health, education and pension spending as well as increasing investment in infrastructural development to 5% of GDP.

Unemployment fell from 10% to 4.4%.

Real GDP growth fell steadily, however, from a peak of over 11% in 1997 when McCreevy took office to just over 4% in 2004.

Real GDP growth across the full period of the Celtic Tiger represented by far the highest average of any western European country.

Inflation was increased from 1.5% in 1997, to 5.5% in 2000, before falling steadily to just over 2% in 2004.

From 1997 to 2000, McCreevy cut Capital Gains Tax from 40% to 20%, and extended Section 23 Tax allowances to the Upper Shannon Area (against the advice of the Finance Department) in the Finance Acts of 1998 and 1999.

These included special tax incentives targeted at the area covered by the pilot Rural Renewal Scheme, which was later criticised by the Heritage Council for being introduced without a "Baseline Audit" to inform the level and scale of development to be supported through the scheme, not identifying priority areas suitable for development, not providing any strategic protection for designated areas including the corridor of the River Shannon nor promoting the use of sustainable design and building materials in any new build or refurbishment project supported by the scheme.

These two measures of cutting Capital Gains Tax and providing tax incentives for property development in thinly populated rural areas have been partly responsible for the explosion in housing and commercial property speculation, which led ultimately to the collapse of the Irish banking system.

Frequently outspoken, McCreevy sometimes made comments which attracted controversy.

For example, McCreevy once referred to the Irish health system as a "black hole" and reacted to the initial Irish rejection of the Nice Treaty as "a sign of a healthy democracy".

He later explained this as reflecting a wake-up call to politicians and others who, like him, had expected an almost automatic Yes vote.

McCreevy also prompted warnings from the European Commission, who claimed that his £2 billion tax giveaway in 2000 would be inflationary, and harmful to the Irish economy.

His family background was modest, his father and ancestors since the late 18th century was a lock-keeper on the Grand Canal, a job carried on by his mother, after the death of his father, when McCreevy was four years old.

Thus, his post-compulsory education was attained by winning scholarships.