1966 Presidential Campaign
Haughey played a controversial role in the 1966 Irish presidential election. He had been appointed the Fianna Fáil campaign manager, to run President de Valera's re-election campaign. His interventions proved highly controversial. Fine Gael chose a young Teachta Dála and barrister, Tom O'Higgins (nephew of Kevin O'Higgins) to run against de Valera. Aware that de Valera's age (84) and almost total blindness might compare unfavourably to O'Higgins, whose campaigns drew comparisons with the equally youthful United States president of Irish descent, John F. Kennedy, Haughey launched what was seen as a political stroke. He insisted that it was beneath the presidency to actively campaign, meaning that de Valera would have a low profile. Therefore in the interests of fairness the media was recommended to also give O'Higgins a low profile, ignoring his speeches and publicity campaign. However the print media, both nationally and locally ignored Haughey's suggestion. But the state-run Telifís Éireann, facing criticism from Lemass' government for being too radical in other areas, agreed and largely ignored the O'Higgins campaign.
In reality de Valera got a high media profile from a different source, the Fiftieth Anniversary commemoration of the Easter Rising, of which he was the most senior survivor. While O'Higgins's campaign was ignored by RTÉ, de Valera appeared in RTÉ coverage of the Rising events regularly. To add further to de Valera's campaign, Haughey as Agriculture Minister arranged for milk price increases to be given to farmers on the eve of polling, as a way of reducing farmer disquiet, when the farmers had effectively become an opposition movement to the government.
These tactics should have ensured an easy de Valera victory. Instead O'Higgins came to within less than one percent of winning the vote. The President was re-elected by a narrow margin of ten thousand votes out of a total of nearly one million. De Valera personally developed a highly negative view of Haughey, whom he came to distrust. In 1970 de Valera told Desmond O'Malley (now a rival of Haughey) that Haughey would "destroy" Fianna Fáil. De Valera's minister for Foreign Affairs and lifelong political confidant Frank Aiken also dismissed Haughey's political motives as being entirely selfish, and being motivated to hold power for its own sake and not duty.
In 1966 the Taoiseach, Seán Lemass retired. Haughey declared his candidature to succeed Lemass in the consequent leadership election. George Colley and Neil Blaney did likewise. With three strong candidates with strong and divisive views on the future of the party, the party elders sought to find a compromise candidate. Lemass himself, encouraged his Minister for Finance, Jack Lynch, to contest the party leadership. Lemass also encouraged Colley, Haughey and Blaney to withdraw in favour of Lynch, realising that they would not win the contest. However, Colley refused the Taoiseach's request and insisted on remaining in the race, but he was defeated by Lynch. Upon Lynch's election as Taoiseach, Haughey was appointed Minister for Finance by Lynch in a Cabinet reshuffle, which indicated that Haughey's withdrawal was a gain at the expense of Colley. Again Haughey showed a brilliant and radical streak. The inexpensive and socially inclusive initiatives caught the public imagination including popular decisions to introduce free travel on public transport for pensioners, subsidise electricity for pensioners, the granting of special tax concessions for the disabled and tax exemptions for artists. This increased Haughey's populist appeal, and his support from certain elements in the media and artistic community.
As Minister for Finance, Haughey on two occasions arranged foreign currency loans for the government which he then arranged to be left on deposit in foreign countries (Germany and the United States), in the local currency - instead of immediately changing the loans to the Irish currency and depositing in the Exchequer - these actions were unconstitutional, because it effectively meant that the Minister for Finance was making a currency speculation against his own currency. When this was challenged by the Comptroller and Auditor General Eugene Francis Suttle, Haughey introduced a law to retrospectively legalise his actions. The debate was very short and the record shows no understanding of the issue by the opposition finance spokesmen, O'Higgins for Fine Gael and Tully for Labour. The legislation was passed on 26 November 1969.
Read more about this topic: Charles Haughey
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