Labour denies rift with FG or troika over softer Budget
LABOUR Party ministers are insisting there is no rift with Fine Gael or the EU-IMF bailout team over softening next year's Budget in the wake of the promissory note deal.
The junior coalition partners are pushing for the €1bn benefit from the bank debt deal to be used to reduce the package of cuts and taxes in Budget 2014.
Tanaiste Eamon Gilmore said yesterday the extra funding would be factored into the budgetary arithmetic – but it was too early to say how this would happen.
“It's clear it will have an impact on budgetary decisions,” he said.
Education Minister Ruairi Quinn dismissed suggestions this policy of reinvesting the proceeds would upset the bailout team. “I don't think it is a question of pleasing the troika. I think it is a question of getting the economy fixed; we have to get the balance between economic growth and budget adjustment,” he said.
Mr Quinn backed calls by his party colleagues to disburse some of the gains.
“I think we need to generate growth for economy and whatever way we can do that so much the better. We should do it because it is the best thing to do, not to please anybody else,” he said.
Last week, Social Protection Minister Joan Burton suggested the prom note savings should be used to soften the Budget this year. Ms Burton said the EU-IMF bailout team “must be aware” of the high levels of unemployment in Ireland.
Rejecting suggestions of division between Fine Gael and the Labour Party on the issue, Ms Burton said she was “not aware of any government minister who isn't absolutely committed to helping people get back to work”.
Again, talking up the prospect of the €1bn funding being used as a fiscal stimulus, Ms Burton said she wanted to see the Budget being framed “with getting people back to work in mind”.