Micheal vows no austerity
Austerity ruled out as TD moves to reassure public Country has ‘suffered shock’ & faces uphill battle
MICHEAL Martin pledged there will be no return to austerity as Ireland faces the “mammoth challenge” of economic recovery post-pandemic.
In one of his first interviews since the Programme for Government was agreed by party leaders, the Fianna Fail chief assured the country he was up to the task ahead.
The Cork TD, who is set to become Taoiseach until December 2022 under the deal, said the Fianna Fail/fine Gael/green Party agreement hammered out was the best option for the country.
He told the Irish Sunday Mirror: “The country has suffered an unprecedented type of shock because of a virus which is deadly and dangerous.
“Hopefully, we will have a vaccine soon that will enable us to come back to a new normal. But the challenge is enormous.
“I don’t underestimate the task ahead. We have to face it head-on. It’s time to put the shoulder to the wheel.
“But there will be no austerity. The caretaker Government is racking up a lot of debt because it has to.
“I reckon by the end of the year it will be €30billion. But we are able to borrow with cheap rates on the European market.
EMPLOYMENT
“I think it [borrowing] will continue, but we don’t want to be in debt for ever. We need to see some stimulus in July and start to create employment.
“If we can do that over time we can reduce the debt and get the deficit under control.”
Members of Fianna Fail, Fine Gael and the Greens must decide by Friday whether to endorse the Programme for Government – which is by no means a done deal.
There has been dissent in the ranks of FF and FG, and the Greens remain divided on the document which includes ambitious targets for housing, climate change and healthcare.
Deputy Martin said: “We didn’t get everything we wanted but in terms of housing, healthcare and climate change we were anxious they get top priority and they did.
“We want more houses built, we want more council houses, more affordable houses to enable people to buy. With healthcare we have to move quickly now on non-covid issues and up the treatment purchase fund.
“With education we need to look after those with special needs, and the DEIS [disadvantaged] primary schools.
“We’re not going to touch income tax or USC. But we do have to look at PRSI if we want to increase pension benefits and improve healthcare and so on.
“Ireland doesn’t have the same PRSI model as a lot of other countries. We do need extra capacity in our health service. And childcare supports. Covid has accelerated a lot of reforms that might have come in the next couple of years. The incentives are there for people to work from home. “We need to inject new life into rural towns, to refurbish vacant premises for housing, to create technical hubs. “Covid-19 has made people reflect on life – can we make life a bit Jack Lynch in 1972 more fulfilling?” If the programme is ratified, a commission will be established to review one of the most contentious issues of the election campaign – the pension age.
“Sixty-seven was to be the new pension age next January. We agreed that would not happen pending the outcome of a commission on pensions.
“We need to look at the sustainability of pensions, that we have enough revenue there for our ageing population.
“Sixty-five-year-olds are no longer required to sign on having worked all their lives and having been required to retire.
“There will be a pathway pension equivalent to the jobseekers’ allowance – but at least they will not have to sign on.”
Mr Martin said the issue of self-employed and pensions should be looked at as well as giving those in the private sector the choice to work up to age 70.
Under the three-way coalition he will vacate the Taoiseach’s role on December 15, 2022, when Leo Varadkar takes over.
A direct swap with the Fianna
Fail leader taking over from Mr Varadkar as Minister for Enterprise, Business, Jobs and the Economy is envisaged. Simon Coveney is tipped to retain the foreign affairs portfolio as is Simon Harris with health, with Pascal Donohoe moving to the Department of Social Protection. Meanwhile, FF’S Michael Mcgrath is expected to take finance with Dara Calleary as Justice Minister and either Barry Cowan or Darragh O’brien as Housing Minister. But the Fianna Fail leader said it’s
far too early to speculate on how the Cabinet posts will be carved up.
He added: “That work remains to be done. The first job was to get a programme agreed, then we have to get it past the membership. Then we can talk departments.”
Mr Martin has dreamed of taking the top job for decades, but at 59 is still relatively young in terms of the world of politics.
He admitted the prospect of becoming the first Cork Taoiseach since his “hero” Jack Lynch was both daunting and exhilarating at the same time. He said: “My late father
was a great friend of Jack Lynch and I would have fond memories of him growing up.
“He was a famous Cork man in terms of sport. He won six Allirelands in a row and he was a true gentleman as well.
“It would be a great privilege to follow in his footsteps.”
When asked if his wife was prepared to see less of him if he takes on the role of Taoiseach, he added: “Mary understands politics. We met through politics, she’s under no illusion as to what politics means.