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Exchequer figures show consequences of bailing out zombie banks – Doherty

4 April, 2011 - by Pearse Doherty TD


Sinn Féin Spokesperson on Finance Pearse Doherty has said that the exchequer figures released today are another strong reminder as to why this Government needs to stop pumping billions of taxpayers’ money into zombie banks.

Deputy Doherty said:

“Sinn Féin indicated during the debate on Budget 2011 that further austerity measures would depress the domestic economy. Today’s figures show that this is exactly what has come to pass.

“The end of March exchequer returns released today shows that in the first 13 weeks of the year that the combined VAT and Income Taxes are €304 million behind Government projections. This is extremely worrying for the domestic economy and shows the very real impact that these austerity measures are having on the local economy.

“If this trend were to continue until year end this would lead to a €1.2 billion shortfall in these combined taxes.

“The cost of servicing our debt has increased in the first 13 weeks of this year by €663 million compared the same period in 2010 which is mainly as a result of the failed banking policies of this and the previous Government.

“While the exchequer deficit for the first 13 weeks of 2011 stands at just over €7 billion, 43% or €3,060 million of this is made up of money that was transferred to Anglo Irish Bank and Irish Nationwide on Thursday last.

“Today’s figures are another strong reminder as to why this Government needs to change course and stop pumping billions of taxpayers’ money into zombie banks. This failed strategy is having a real impact on the domestic economy and can only lead to further austerity, further stagnation and higher unemployment.”

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