Boom to bust cycle far from over under Fine Gael’s watch-Toíbín
Sinn Féin’s Jobs Spokesperson Peadar Tóibín today rubbished claims made in the Dáil by Labour’s Junior Minister for Business and Employment Ged Nash that the days of boom bust economic model were over.
The Meath West TD said:
“Fine Gael and Labour, like Fianna Fáil before them, is a pro cyclical boom bust government. Fianna Fáil poured financial petrol on the property bubble while Fine Gael and Labour gouged billions out of the economy in capital and expenditure cuts over the course recession.
“Fianna Fáil heightened the peak and the current government deepened and lengthened the trough. Any counter cyclical or counter boom bust government would have taken money out of an overheating economy and invested in the recession. It is clear that neither government acted in this manner.
“Labour and Fine Gael imposed a 2 to 1 ratio of expenditure cuts to tax revenue, and instead of addressing the economic and societal deficit arising from this policy they have merely returned to a ratio of 1 to 1. It’s clear that on both sides of the recession Fine Gael are the ones running the show, as Labour lurch to the right stepping in to fill their coalition partners shoes when needed.
“Government Ministers tell us with much hoopla that they have allocated between €600m and €700m in extra spending, but if you factor in population growth and then split this targeted spend with regards to pay, public sector capacity and capital spending it is clear that Ireland will be at best standing still.”