TENSIONS AROSE ABOUT the Budget at last night’s Fine Gael parliamentary party meeting with two TDs questioning the spending promises being made.
Former ministers Charlie Flanagan and Michael Creed both spoke up about the recent spending promises, with Flanagan highlighting the need for caution with public money.
He told the Tánaiste that the government cannot meet every demand, voicing concerns about the lack of discussion about the mounting debt the country has to carry post pandemic.
Flanagan said that this government cannot pass the massive public debt onto the shoulders of young people.
Creed made similar points, but also raised concerns around the pandemic bonus, who would be eligible and how much the final bill for it will be.
Varadkar is understood to have given a “robust” defence, and urged those within his own party not to buy into a “fake narrative” that Fine Gael is no longer fiscally responsible.
He said that Fine Gael had saved the country from bankruptcy in 2011, and as Taoiseach he delivered a Budget surplus. He also said the deficit this year will be much lower than anyone thought it would be, and that they will only borrow for capital from 2023 onward.
The party leader told the two TDs last night that they shouldn’t believe the narrative “as it is not based on facts”.
The Government is currently forecast to run an overall budget deficit of €15.5 billion this year, according to recent estimates by the Irish Fiscal Advisory Council.
The Economic and Social Research Institute (ESRI) said today Ireland’s economic performance should ease the burden of the pandemic on the public finances but “significant investments” will be required to tackle long-standing issues around housing, climate change and healthcare.
The concerns raised came against the backdrop of last night’s Irish Times poll, which see Varadkar’s personal rating fall by 13 points in four months, to 43%.
The Irish Times/Ipsos MRBI opinion poll shows that Sinn Féin is in a ten point lead over Fine Gael at 32%, far ahead of Fine Gael on 22% and Fianna Fáil on 20%.
At last night’s meeting, Varadkar also spoke about the National Development Plan, stating that major infrastructural projects in the plan could not have a completion date or cost put on them as it cannot be predicted currently.
He said previous costs and timelines associated with other major capital projects as unrealistic and said this would not be repeated with future NDP projects.
On Covid, the Tánaiste said all evidence is stacking up that we will need an extensive booster programme this winter. Further advice will come from NIAC (National Immunisation Advisory Committee) on what form it will take, he said.
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