The restoration of Ireland’s international reputation is vital for its economic recovery, according to Mayo Fianna Fáil TD Beverley Flynn.
Deputy Flynn was speaking in Dáil Éireann on the pre Budget statements, and she said she is confident that the Government’s decisions in the forthcoming Budget on April 7 will help in the recovery of Ireland’s economy and its international reputation.
In her statement she prioritised proposals to deal with the bad assets in the Irish banks, the creation of jobs, and the recovery of our competitiveness.
“The problems being faced in Ireland are global. Countries which in the past had similar problems to Ireland’s have recovered and achieved social and economic success, as we will also. It is about time we brought some confidence to the debate to show that we can and will find a way out of this situation. The Government has a five-year objective that has been highlighted by the Taoiseach. The objective is to bring the Budget deficit below three per cent by 2013. We have signed up to that commitment under the Stability and Growth Pact,” explained the Fianna Fáil deputy.
“There has been much talk today about the 9.5 per cent GDP deficit this year and whether we will maintain that figure. I believe we need to keep as close to that as possible and in order to realise the objectives we seek within the five-year period.
“Circumstances are constantly changing and we need to respond as positively as we can to the situation in which we find ourselves. We must restore our international reputation as far as the financial markets are concerned. The Opposition has done a fair bit to undermine that and it must take responsibility,” she added.
“We can achieve that with bank regulation and governance and convincing the international community that this country is capable of getting our public finances under control within the five-year period. We have the confidence of the European Central Bank in that regard.
“The ability of the banks to lend money is a key issue to our recovery. I look forward to the proposals on April 7 that will deal with the bad asset situation in our banks and free up money for businesses big and small. I am particularly concerned about the retention of existing jobs. The National Development Plan should be redirected to protect existing jobs in our economy. It is a priority for me and something I have highlighted in every debate on this issue in recent weeks.”
Dep Flynn continued by saying that any new approach to taxation must provide that those who have the capacity to pay more should pay more and the vulnerable in society should be protected. Reducing prices and wages to ensure that Ireland’s competitiveness is returned is also crucial, she said.
Referring to the construction industry, Dep Flynn said: “Ireland’s problems have been confounded by the contraction in the construction industry and the falls in exports. If we did not have the problem of the contraction in the construction industry, we would still be in a very difficult economic situation today. We must bring back construction to a level at which it is sustainable, which is 10 per cent of the GNP.”
A scrappage scheme for the motor trade and alterations to the PRSI system to help protect jobs are also worth considering, Dep Flynn concluded.
