Varadakar to row back on rainy day fund ... spend spend spend

ger12

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The Sunday Business Post is leading with a story that Leo Varadakar is to scrap Noonans rainy day fund to go on a "spending splurge". He certainly made a lot of promises during the leadership race and now we have a hint as to where the money will come from.

The cash reserve announced by Noonan last year was to build up over the next five years and be used to support public finances and protect the economy from future shocks.

This move was encouraged by the Fiscal Advisory Council, the watchdog said that the measure could be a way to “withstand political pressures to loosen fiscal policy” while tax revenue was growing strongly.

Groundhog Day?
 


Brera

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The Sunday Business Post is leading with a story that Leo Varadakar is to scrap Noonans rainy day fund to go on a "spending splurge". He certainly made a lot of promises during the leadership race and now we have a hint as to where the money will come from.

The cash reserve announced by Noonan last year was to build up over the next five years and be used to support public finances and protect the economy from future shocks.

This move was encouraged by the Fiscal Advisory Council, the watchdog said that the measure could be a way to “withstand political pressures to loosen fiscal policy” while tax revenue was growing strongly.

Groundhog Day?

So we are more than likely approaching a point where we may need to take money out of the economy and he wants to go on a spending spree - FFS. Yes we do need to increase spending on infrastructure but for heavens sake let's not go back to the Celtic Tiger days and make the same mistakes again.


Varadkar is more and more starting to look Bertie
 

ger12

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tigerben

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One paper has him as mr spend spend spend , another paper has him saying welfare isn't a way of life. A interview with his socialist father says his hopes he will look after the vulnerable.

At least Irish politics might get exciting in days ahead .
 

Dame_Enda

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We need a third National Development Plan to repair our crumbling infrastructure outside Dublin.

We need bulk buying of medicine to reduce medicine prices because of the discounts bulk buying gives.
 

ger12

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I would hate to live in the fear you live in.
I can remember 2008 onwards, maybe you were one of the ... lucky ones?
 

ne0ica

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Leo is just getting in there first before FF + SF raid the piggie bank.

Fiscal rectitude is not considered a virture in this county but seen as tight fisted and mean.

The rainyday fund is quite a good idea and would be a great help to alleviate the effects of the next economic slowdown and recession. A number of states in US have them.

As long as voters keep electing ejjits who promise free things then we just better get prepared for the next wave of austerity and emigration.
 

eoghanacht

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Buying us with baubles.

I'd scoff only I witnessed how avaristic we can be and easily lead into hubris.

All Haily the ballsy guys Eh, Seanie Fitz how are ye.
 

NYCKY

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The Sunday Business Post is leading with a story that Leo Varadakar is to scrap Noonans rainy day fund to go on a "spending splurge". He certainly made a lot of promises during the leadership race and now we have a hint as to where the money will come from.

The cash reserve announced by Noonan last year was to build up over the next five years and be used to support public finances and protect the economy from future shocks.

This move was encouraged by the Fiscal Advisory Council, the watchdog said that the measure could be a way to “withstand political pressures to loosen fiscal policy” while tax revenue was growing strongly.

Groundhog Day?
If it was used purely for infrastructure, like upgrading train stations, airports, transport links, bridges, building schools, things of that nature then the plan would have some merit, as it would generate employment, increased revenue for the Government and leave a lasting tangible benefit.

However, knowing Irish Governments, it will probably be used to increase PS pay and dole etc with a benefit for the next election for some parties but no lasting tangible benefit for the country.
 

venusian

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If it was used purely for infrastructure, like upgrading train stations, airports, transport links, bridges, building schools, things of that nature then the plan would have some merit, as it would generate employment, increased revenue for the Government and leave a lasting tangible benefit.

However, knowing Irish Governments, it will probably be used to increase PS pay and dole etc with a benefit for the next election for some parties but no lasting tangible benefit for the country.
Due to the current housing crisis created by Noonan that Coveneny made worse, if Varadkar tendered for the building of social along with regular decent affordable homes he would do the country some good but as he is a swivel eyed right wing loon somehow I don't think he will:roll:
 

Brera

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If it was used purely for infrastructure, like upgrading train stations, airports, transport links, bridges, building schools, things of that nature then the plan would have some merit, as it would generate employment, increased revenue for the Government and leave a lasting tangible benefit.

However, knowing Irish Governments, it will probably be used to increase PS pay and dole etc with a benefit for the next election for some parties but no lasting tangible benefit for the country.
We also need to make sure we spend money on infrastructure correctly. We haven't learnt lessons from the past as the bill for the National
Children's Hospital has shown
 

DJP

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The Sunday Business Post is leading with a story that Leo Varadakar is to scrap Noonans rainy day fund to go on a "spending splurge". He certainly made a lot of promises during the leadership race and now we have a hint as to where the money will come from.

The cash reserve announced by Noonan last year was to build up over the next five years and be used to support public finances and protect the economy from future shocks.

This move was encouraged by the Fiscal Advisory Council, the watchdog said that the measure could be a way to “withstand political pressures to loosen fiscal policy” while tax revenue was growing strongly.

Groundhog Day?
How prudent of you Ger12. :shock:
 
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Lumpy Talbot

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No
Well we had a 25 billion euro bulwark against the black hole in pension requirements back in 2006 called the National Pension Reserve Fund and at the time it was the 17th largest sovereign wealth fund in the world.

A year later it had been plundered by Lenihan to pay bank bondholders. He converted it to an SPV, took the money from the University pension schemes and added that to the 25 billion and blew that out the door also, leaving university pension liabilities heaped on the Oireachtas current account.

So even if a rainy day fund was stoked up large enough to help the economy withstand shocks it would be the first thing raided to pay off bank bondholders when (and not 'if', please note) another Irish systemic bank runs out of money from gambling beyond all known regulatory restraint.

Our last considerably sized rainy day fund went into the black hole that was the Irish banks. I see no reason why next time anything will have changed.
 

FunkyBoogaloo

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Well we had a 25 billion euro bulwark against the black hole in pension requirements back in 2006 called the National Pension Reserve Fund and at the time it was the 17th largest sovereign wealth fund in the world.

A year later it had been plundered by Lenihan to pay bank bondholders. He converted it to an SPV, took the money from the University pension schemes and added that to the 25 billion and blew that out the door also, leaving university pension liabilities heaped on the Oireachtas current account.

So even if a rainy day fund was stoked up large enough to help the economy withstand shocks it would be the first thing raided to pay off bank bondholders when (and not 'if', please note) another Irish systemic bank runs out of money from gambling beyond all known regulatory restraint.

Our last considerably sized rainy day fund went into the black hole that was the Irish banks. I see no reason why next time anything will have changed.
I was about to remind people of what happened to the last "rainy day fund" we had but you beat me to it.

An important reminder it seems. I completely echo your last sentiment too.

+1
 

Lumpy Talbot

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No
I think there are very few ways for the state to have a rainy day fund which wouldn't end up being used as a way to buy an election by one or other of the political parties- it matters not which as the same dynamic drives both FF and FG- patronage.

If the state were to have such a fund it would have to be ringfenced to the point where neither party would vote for the proposal.

In other words it would have to be administered by a special purpose vehicle restricted legally for use only if certain conditions are met- such as a range of factors from bond yield performance to similar emergency style indicators being present. There would have to be an administrative set up independent of government legally and with the power to assess whether it should be used independent of influence.

Anything less and I wouldn't trust any Irish government not to misuse it for their own purposes.

It is a bit like the proposal that everyone should be levied to pay for a pension fund to be set up. I would not advise voting for such a scenario as this very thing happened in the UK where the UK government under Brown actually noticed a large sum of investors money had appeared in pension funds and actually removed tax benefits on it such that it damaged the ability of the underlying fund to pay pensions. The government gave itself a windfall and the pension fund suffered to the point where some people actually were ripped off of their pension arrangements that they had fairly paid for for years.

Do not trust an Irish government to encourage the amassing of a large sum of money as they will access it somehow, whether by levy, windfall or by tinkering with the previous encouragements to save in a tax raid.

It makes far more sense if you do not trust your government to leave a savings pot alone for its stated purpose, to actually refuse to amass that pot and leave the government having to address a deficit rather than wondering how to access a surplus.
 

Cnoc a Leassa

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So we are more than likely approaching a point where we may need to take money out of the economy and he wants to go on a spending spree - FFS. Yes we do need to increase spending on infrastructure but for heavens sake let's not go back to the Celtic Tiger days and make the same mistakes again.

It would be entirely consistent for a politician who speaks of "social welfare is not a life style" to then propose boosting corporate welfare. Corporate welfare can also be a life style. It would also be deeply regrettable for FG if this proposal actually represents what FG intend to do.
 

james toney

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The Sunday Business Post is leading with a story that Leo Varadakar is to scrap Noonans rainy day fund to go on a "spending splurge". He certainly made a lot of promises during the leadership race and now we have a hint as to where the money will come from.

The cash reserve announced by Noonan last year was to build up over the next five years and be used to support public finances and protect the economy from future shocks.

This move was encouraged by the Fiscal Advisory Council, the watchdog said that the measure could be a way to “withstand political pressures to loosen fiscal policy” while tax revenue was growing strongly.

Groundhog Day?
It was all lies in the first place.....fiscal space Bollox.

http://www.politics.ie/forum/elections/245631-fine-gael-caught-out-election-promise-day-one.html
 

ger12

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If it was used purely for infrastructure, like upgrading train stations, airports, transport links, bridges, building schools, things of that nature then the plan would have some merit, as it would generate employment, increased revenue for the Government and leave a lasting tangible benefit.

However, knowing Irish Governments, it will probably be used to increase PS pay and dole etc with a benefit for the next election for some parties but no lasting tangible benefit for the country.
I disagree, I know we need to invest in infrastructure but with the future looking so uncertain, I believe it very foolish to gamble like this.
 


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