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Growth rate cut proves debt burden is unsustainable – Doherty

11 April, 2011 - by Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty has said the ‘jobs budget’ announced last month by the Government was cover for the harsh austerity budget which will be implemented in reality.

Deputy Doherty also said that the cut in the IMF’s growth rate prediction for Ireland shows that the debt burden is unsustainable and has left the Government and the EU Commission’s debt sustainability analysis in tatters.

Speaking this evening Deputy Doherty said:

“During a recent exchange with myself in the Dáil Minister Noonan conceded that the upcoming budget would include revenue raising measures to counter act the funds spent in their so called jobs budget. This sparked fears that what we were actually facing was an austerity budget.

“Today’s announcement of a spending review across all departments confirms for me that what we are in fact facing in a harsh austerity budget and that the so called ‘jobs budget’ was really just a cover for this.

“Sinn Féin has argued that the National Pension Reserve Fund should be used to create jobs but the Government has committed that to defunct banks as part of the EU/IMF loan deal.

“However, today’s cut in the IMF’s growth rate prediction for Ireland from 0.9% to 0.5% clearly shows that we cannot afford the EU/IMF loan.

“The EU/IMF rated Ireland’s debt sustainability on the basis of a growth rate of 0.9% and an unemployment figure of 405,000 people. Both of these figures have now gone out the window.

“The unemployment figure is at 441,193 and our growth rate has been reduced proving what Sinn Féin has being saying all along – that our debt burden is unsustainable and we simply cannot afford this loan.” ENDS

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