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Government has abandoned domestic economy – Doherty

1 September, 2011 - by Pearse Doherty TD

Speaking today after the Dáil Finance Committee met the Minister for Finance Michael Noonan, Sinn Féin Finance spokesperson Pearse Doherty said “the government has given up on the domestic economy”.

The Donegal South West TD accused the government of “foolishly putting all its eggs in the basket of export-led growth rather than investing in rebuilding the domestic economy.”

Deputy Doherty said:

“Both the ERSI and the government have announced that they are revising downwards their economic growth predictions for 2011 and 2012.

“Sinn Féin has consistently argued that the consensus for cuts being pursued by Fine Gael and Labour, and supported by Fianna Fáil, will delay social and economic recovery and is the reason hundreds of thousands of families are finding it difficult to make ends meet.

“Today the minister acknowledged that the government would have to revise downwards its growth projections for 2012. This is the second time it has been forced to do this, confirming what Sinn Féin has said all along, that economic growth cannot be achieved on the back of savage austerity.

“Meanwhile the government, just like its predecessors, tells us that the path to recovery rests in domestic austerity and export-led growth.

“It is clear that the government has abandoned the domestic economy and with it, the hope of reducing unemployment.

“It has foolishly put all of its eggs in the basket of export-led growth at a time when the global economy looks set to contract. Economists and government bodies in the US and Europe are bracing themselves for a second recession.

“The government needs to change its economic policy and start to invest in the domestic economy. It should do this by investing in jobs and by making those who have most pay more while protecting those he have least.

“Unfortunately, listening to Michael Noonan at the Finance Committee today, there seems to be little chance of this happening. Instead he looks set to return to the Dáil in October with a package of spending cuts and tax increases that will depress the economy and force more families into real financial hardship.” ENDS

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