Minister for Finance Paschal Donohoe has defended the Government’s plans for the upcoming budget, including the decision to not repeat the one-off cost-of-living payments provided last year.
Mr Donohoe told RTÉ radio’s Morning Ireland that there was a need to rein in spending and to focus on permanent measures to support the vulnerable.
“Spending in Government departments has grown by around 8 or 9 per cent each year for the past few years. Is that going to have to be reined in? So we are going to have to reduce the level of current spending growth that we have within our economy,” Mr Donohoe said.
Earlier on Newstalk Breakfast Mr Donohoe had emphasised the challenges facing the economy due to uncertainty stemming from US President Donald Trump’s one/off trade war
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“We’re facing many challenges to the future of our economy. It’s not that we don’t want to help. It’s that we need to help and intervene in a way that we’re conscious that we’ll be able to afford and that won’t create further difficulties for us in the future.”
“I’ve never seen the kind of uncertainty we have at the moment. That is generated by economic policy, which is why I want to ensure that the budget that we bring forward is safe, doesn’t add to uncertainty we have in the future, and above all, focuses on investment.”
“I do think it is important to acknowledge that there are things that could happen to our economy that would pose real periods of challenge that we would then need to work together to overcome.” The Minister said on RTÉ in relation the possible impact of US tariffs.
“We brought forward an economic forecast that said if there were 10 per cent tariffs in place within our economy between the US and the European Union and 60 per cent tariffs between China and America, it would mean a lower level of growth within our economy and it would mean up to 75,000 fewer jobs being kept or created within our country.”
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“Progressively the scenario that we now face could involve an even more significant effect on growth. It could involve further effect on the job creation and number of jobs within Ireland,” the Minister said.
“But that is why we continue to negotiate so hard through the European Union to try to avoid that happening. And thankfully, we are approaching these moments of great challenge with our economic finances in good condition, our public finances in good condition and a record number of people that work in Ireland.
When asked about concerns expressed by the Irish Business and Employers Confederation about the impact of the Occupied Territories Bill on Irish businesses, Mr Donohoe said: “We’ve always acknowledged that there are consequences in any decision that we make. It is important to be clear that in the bill that we are bringing forward, it’s referring to an extremely limited amount of trade that has taken place from the territories into Ireland.”
“And I believe that if you look at the enormous trauma and the awful, awful loss the people of Gaza have endured due to the action that has been taken against them, always acknowledging of course the hurt and violence that happened in October, that was also the catalyst of much of this, that it is so important that the Government of Ireland makes clear that we are diplomatically acting to try to lessen and weaken the harm.”
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