Jimmy Dignam, Workers’ Party representative Dublin North West
The Workers’ Party Dublin North-West representative, Jimmy Dignam, has warned against Minister Michael Noonan’s plans to cut Ireland’s debt-to-GDP ratio to 45% over the next decade.
Dignam stated: “People should be very concerned about Fine Gael’s plans to reduce our debt-to-GDP ratio to 45%, exactly half the current EU average of 91%. This reduction represents a radical shift in the amount of money available to the exchequer for government spending and will ensure continuing austerity cuts, privatisation of state assets and the increasing impoverishment of large numbers of people.”
“Instead of borrowing in order to invest in education, healthcare and housing, the Government plans to increasingly turn to the private sector to solve our problems. This proposal is in line with Fine Gael’s housing strategy of incentivising developers to solve the housing crisis, instead of the Government investing public money. We only have to look to the recent past to see the disastrous consequences of this strategy.”
Dignam continued: “Minister Noonan’s plan is predicated on the falsehood that the economic crash was created by over-borrowing. In fact, the main reason the State needed to borrow so much was due to the massive bank bailouts and lack of investment in job creation. Currently, the EU Stability and Growth Pact mandates countries to cut their debt-to-GDP to 60%. However, the vast majority of EU countries are nowhere near this target. So, why is Minister Noonan looking to for us to far exceed the rest of Europe?”
Dignam concluded: “Ireland has one of the lowest rates of capital investment across the EU. This will come as no surprise to anyone who has had to use the HSE’s services recently. Now that the exchequer has some funds available, instead of reducing the debt to GDP ratio far below the EU average, this money should be used to produce housing through the state, to support state childcare provision and to greatly increase investment in the healthcare system.”