Mick Wallace (Wexford, Independent) | Oireachtas source

The Minister outlined many of the initiatives designed to create a better climate, yet the Nevin Institute estimated that the budget for 2013 will cost between 25,000 and 35,000 jobs, reduce GDP by 2.1% and lower private consumption. Its report stated:

Budget 2013 resulted in continued cuts in the public capital programme. This is likely to result in job losses in the short term, and in the long term severely reduce the ability of the economy to grow, sustain the level of national debt, and take advantage of any upswing in the world economy. There is a compelling case not only to accelerate investment in priority infrastructure areas but to bring forward plans to reform banking and to establish a Strategic Investment Bank as mentioned in the Programme for Government.

The Minister mentioned that access to finance has improved in 2012. From my experience with the banks and from that of many businesspeople I know, it appears that any effort banks are making to meet targets set by the Government mostly seem to be geared towards readjustment and refinancing of existing packages rather than new finance. A strategic investment bank, which the Government promised, would be a wonderful idea, given that it would have complete control over it. Even if the banks claim to be doing something, experience has taught us to take much of what they claim with a considerable amount of salt.

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