Reporter Colum Coomey spoke to deputies Willie O’Dea, Michael Noonan and head of economics at UL, Anthony Leddin
‘We should not have to carry this debt’ – Leddin
THE European Central Bank should shoulder some of our colossal debt, suggests Anthony Leddin, head of economics at UL.
“The Irish government and economy should not have to carry this debt. The banks were not the only ones responsible for reckless lending.
“When we entered the European Monetary Fund it was seen as one policy fits all, which was totally inappropriate for Ireland at the time”.
Dr Leddin said that the Irish Central Bank is essentially a sub post office of the European Central Bank, and if something goes wrong, headquarters should take responsibility. Anglo Irish Bank, he said, should have been allowed go out of business.
“There is absolutely no value for the taxpayer to save a bank with just six branches around the country, and absolutely gigantic debt”.
The economist argues that returning to price competitiveness is the key to returning to growth.
“Deflation has improved, underlined by the increase in net exports. We need to continue with price deflation and make sure that absolutely no measures are taken to increase prices in the budget”.
He stated that we have seen a 13% improvement in competitiveness since 2008, but we will need a further 20% improvement to stabilise the economy.
Asked what the government need to do in December budget to address recover our crippled economy, he responded: “They need to steer clear of unnecessary tax while continuing to improve export growth and deal with gross inefficiencies in the public sector”.
‘Not interested in top job’ – Noonan
“THERE is absolutely no truth in that whatsoever,” replied Deputy Michael Noonan, when asked to comment on weekend speculation that he is poised to take over as a compromise candidate in any heave against Fine Gael leader Enda Kenny.
Recent opinion polls indicated that leader Enda Kenny was not viewed by the electorate as Taoiseach material and that as a result, the party suffered in the popularity stakes.
Noonan told the Limerick Post that his main concern was the present state of the economy.
“The Government has absolutely ruined this country over the last two years”.
He rejects deputy Willie O’Dea’s recent claim that this is the final bill for the banking crisis.
“They were saying this two years ago, and now we’re facing €50 billion bill.
“They have no credibility… there is only a few months left in this government and they have announced a four-year budget plan”.
In dismissing opinion polls, the former Fine Gael leader said he is currently formulating detailed financial policies in preparation for a term in government.
“These political opinion polls need to be questioned. They were all carried out over a period of 10 days and show a massive divergence”.
‘Country must now move on’ – O’Dea
“HORRIFIC,” is how deputy Willie O’Dea describes the banking crisis. However, he insists that with a final bill, the country must now move on.
“My guide to these things is the bond market, which has finally stabilised, and interest rates have dropped several points because we now have a final bill for Anglo,” said the Limerick East TD.
Asked why people should believe that this is the final bill for the decimated commercial bank, he replied:
“In the initial stages, we gave an estimate relying on information from the banks and certain information was withheld. “Now that NAMA have performed a detailed and transparent analysis of the banks, we are certain that this is the final bill”. While he is no longer privy to the inner circle of government decision-making, he claims he knows the focus of the December budget.
“The Cabinet need to make tough decisions, and our four-year budget trajectory looks at where to cut and where to tax in order to close the gap”.
He feels that all of the basics are now in place to move on. “We will now have properly capitalised banks and the only way to get back on track is to attract inward investment”. Although he has lost his place at the top table, Deputy O’Dea is still influencing party policy, with a significant input into Minister Eamon O’ Cuiv’s Community Employment Scheme.
