Fiscal Advisory Council proposals are reckless and would damage economy
September 13, 2012
Sinn Féin Deputy Leader Mary Lou McDonald TD has said that the latest call by the Fiscal Advisory Council for the government to add an extra €1.9 billion in spending cuts and tax rises between now and 2015 are ‘reckless’ and ‘would damage the economy, further undermine vital front line public services, and hurt families.’
Deputy McDonald said:
“Today’s proposal by the Fiscal Advisory Council that government should add an extra €1.9 billion in spending cuts and tax rises between now and 2015 are reckless. If implemented they would damage the economy, further undermine vital front line public services and hurt families.
“The deficit reduction strategy outlined by the council simply won’t work. The single biggest obstacle to fiscal sustainability is the absence of growth. The deficit cannot be properly reduced when more than 400,000 people are on the life register.
“The economy urgently needs more investment not more austerity. Investment in jobs is crucial. Getting people off the dole and back paying taxes is the surest route to deficit reduction. Cutting government spending and the disposable incomes of low and middle income earners will further depress the domestic economy and lead to more job losses.
“Once again the Fiscal Advisory Council has shown that it simply does not understand what is happening in the Irish economy. I would urge the Government to ignore the latest advice from the Fiscal Advisory Council as they did to the Council’s advice in advance of budget 2012.”