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Government deluding itself with ‘destruction plan’ of deflationary measures - Morgan

24 November, 2010


Sinn Féin Finance Spokesperson Arthur Morgan has said the Government’s four year plan is not a recovery plan but a destruction plan.

Speaking after the publication of the Government’s plan today Deputy Morgan said the impact of these measures will contract the economy – and not one extra tax cent or one public spending cut will be used to reduce the deficit as it will all end up servicing the debt being incurred for the banks.

Deputy Morgan said:

“The Government is deluding itself if it believes that these measures can bring about economic growth.

“Even solely dealing with our structural deficit, this plan is in the main a list of deflationary actions that will deepen and lengthen the recession.

“The impact of these measures will contract the economy – and not one extra tax cent or one public spending cut will be used to reduce the deficit as it will all end up servicing the debt being incurred for the banks.

“The markets do not give one jot about the Irish budget – they are concerned with the banking crisis – but they will see this ‘plan’ for what it is. This is not a recovery plan – it is a destruction plan.

“The real issue is that we are about to embark on an insane course of borrowing to fund a failed banking policy. We cannot afford this banking policy, we cannot afford this loan. Most importantly we cannot afford this government.

“We need real negotiators in there now to deal with the banks and burn the bondholders. Not a red cent more should go into Irish banks until their debts are restructured.

“If we proceed with this banking plan this four year plan will be bin lining in a matter of weeks.” ENDS

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