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Fiscal Advisory Council report shows that austerity is not working – Doherty

3 April, 2012 - by Pearse Doherty TD


Speaking in response to the report of the Fiscal Advisory Council today Sinn Féin Finance spokesperson Pearse Doherty TD has said the report proves what Sinn Féin has been saying all along, that austerity is not working and the government will not meet its targets.

Deputy Doherty said deficit reduction will come about through non-deflationary measures and by removing the weight of banking debt from public books.

“Today’s report proves what Sinn Féin has been saying all along, that austerity is not working and that the government cannot meet its targets. To proscribe more austerity in order to address the shortfall simply won’t work.

Today the Fiscal Council argued that the Irish people should bear the brunt of an additional €400miillion of austerity next year and a total of €3.2billion of austerity measures by 2015. This is on top of the €12.4billion that this government has promised to inflict on the Irish people by 2015. Not only would these additional measures be harmful to the economy but they would hurt ordinary families who are already struggling to make ends meet.

“The Fiscal Advisory Council does not seem to have any powers of reflection or analysis in its job description. It advocates a policy of austerity and when austerity appears not to be working, the proof being the lower growth projections the council itself warns about, it advocates more austerity.

“We have had four years of cuts and punitive taxes. The result has been deepening recession and lower growth forecasts. The definition of madness is repeating the same exercise and expecting a different result. We cannot cut our way to deficit reduction in the manner in which the government, advised by the likes of the Fiscal Council, is attempting to do.

“Deficit reduction will come about through non-deflationary measures, such as progressive taxes on those who can afford them and eliminating wasteful public spending; through removing the weight of banking debt repayments from the public books; and through investing in job creation which will both boost revenue and lower social welfare spend.

ENDS

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