Poll: Should Ireland spend its 'rainy day' billions?
Fine Gael leader Leo Varadkar wants to scrap a saving scheme due to commence in 2019.
IT WAS REPORTED last weekend that new Fine Gael leader Leo Varadkar wants to scrap a ‘rainy day fund’ in favour of an infrastructure spending spree.
Last year, a billion-euro-a-year saving scheme was introduced by outgoing finance minister Michael Noonan and was due to commence in 2019.
However, the Sunday Business Post reported that Fine Gael leader Varadkar will abandon the programme and instead hopes to spend the money on infrastructure projects like public transport, schools and roads.
“We are a young country with a growing economy and we need room to expand,” he told the newspaper. “Failure to do so could have negative consequences for future growth and living standards.”
Varadkar said the country already has billions stowed away through the government’s strategic investment fund.
Scrapping the ‘rainy day fund’ will require backing from Fianna Fáil since the policy is part of its confidence and supply agreement with Fine Gael.
The money was supposed to be put away in case Ireland experienced a sudden economic downturn after Brexit.
At the time the fund was first announced, Michael Noonan said the introduction of such a scheme would reflect “the lessons learned from the past”.
“As the Irish economy tends to be more variable than elsewhere it is appropriate to set aside a certain amount each year,” he said at the time.
With that in mind, we’re asking Fora readers: Should Ireland spend its ‘rainy day’ billions?
