‘Our stimulus package is double UK’s spend’
FINANCE Minister Paschal Donohoe has said Ireland’s July stimulus plan is twice as large as that of the UK in relative terms, with a higher spend per person.
The Government announced its long-awaited €5.4billion stimulus plan this week, which included a surprise cut to VAT and an extension of the Help-to-Buy scheme for first-time buyers.
Mr Donohoe and other ministers have been defending the plan for the economy, which Opposition parties have described as a ‘missed opportunity’. Speaking at a press conference in Dublin yesterday, he drew comparisons between the scale of the Irish package and the UK package announced a few weeks ago.
‘The UK recently announced a summer package of £30billion, approximately 1% of UK national income. This package is equivalent to 3% of our national income.
‘On a per capita basis, this package represents €1,000 for every Irish citizen.’
He said by comparison, the UK package was around £450 (€494) for every UK citizen.
And responding to fears that customers would not see much value in the VAT cut, Mr Donohoe called on ‘profitable’ retailers to pass the VAT cut on to consumers.
‘We want all retailers to pass on the VAT cut but we do recognise that for some retailers their situation is so precarious that they might pass some of it on to customers and keep some to retain their people employed,’ he said.
Taoiseach Micheál Martin also defended the July stimulus yesterday and said it will ensure companies can stay intact and get through the coming months.
Mr Martin said the addition of commercial rates relief and a reduction in VAT will give businesses ‘more than a fighting chance’.