Dáil debates

Thursday, 5 July 2012

5:00 pm

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)

If there is any benefit, the Deputy can be assured the Government will take it into account. However, Deputies Michael McGrath and Pearse Doherty are better aware than most Deputies that the Government is dealing with two problems. First, it is dealing with the problem of the debt and second, it is dealing with the problem of the budget. The budget problem is the Government is not collecting enough in taxation to cover what it spends in the provision of services. While that is one problem, there also is the size of the debt, which according to present figures will peak next year at 117% of GDP. It is true the two issues have an influence on each other, that there is a crossover effect and that one reinforces the other. If one is paying a lot of interest on one's debt, it makes one's budget position more difficult. However, even if there was no interest to be paid, the Government still is approximately €14 billion on the wrong side of a balanced budget and this problem must be dealt with as a distinct fiscal problem.

If there are benefits in reduced interest rates, then well and good. However, the timeline is quite long and the European supervisor of banking seems to be the key appointment. That triggers the other elements of the procedure.

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