Eamon Gilmore: there should only be a €2.5 billion adjustment - is he credible ?

[cyberianpan]

Labour leader Eamon Gilmore seems to think that a €2.5 billion "adjustment" is all we need. The most recent deficit figures being bandied about are €20 billion+. Gilmore wants to take some sort of "wait & see" approach & hope things fix themselves. This is as he claims that the problems are due to recent unemployment. This hole in the government's finances has been starkly obvious since last August (and predictable from before then). So

Is Gilmore credible ?
Is this leadership ?

SBP
PL: If €6 billion this year is too much, what do you think would be appropriate and do you think then that it’s possible to borrow the difference on top of current borrowing?

EG: First of all, the information from Finance is quite scant . . . but I would think that, ballpark, we would be looking at an adjustment of about €2.5 billion for the remainder of 2009.

PL: Should the extra money be borrowed?

EG: Yes, but subject to this -w e can’t have borrowing continuing long-term.
...
EG: You’ve to get your economy moving again! Unless we get economic activity moving again and get people back into employment, we’re not going to be able to solve the problem in the public finances.

cYp

[wombat]

As far as I can see, the majority of those who have lost their jobs to date have been in construction or related spinoffs. Our manufacturing problems are largely dependent on our costs but more so on the collapse of markets. If we borrow to spend our way out of the recession, the only place where we can get a quick return is in the construction area. Apart from insulating houses and building new schools has anyone thought about where all this construction activity will be directed?

[Mr.De-Regulation]

You’ve to get your economy moving again! Unless we get economic activity moving again and get people back into employment, we’re not going to be able to solve the problem in the public finances.

Thats not really a plan.

[BodyofEvidence]

Thats not really a plan.

no, its a statement of the bleedin obvious. Labour are really going down in my estimation here - what is their plan? Nothing it seems.

[wombat]

Thats not really a plan.

That's the scarey part, the belief that borrowing money to spend on "schemes" will stop the rot.

[Mr.De-Regulation]

Its ok wombat, cause our children will just pay it.

[SPN]

PL: Would you play a part in a national government?

EG: No, I wouldn’t. Because I think you need an opposition. There has to be a voice in the Dáil for opposition.

Translates into: "No I wouldn't, Grandstanding is so much more rewarding".

[feargach]

As far as I can see, the majority of those who have lost their jobs to date have been in construction or related spinoffs. Our manufacturing problems are largely dependent on our costs but more so on the collapse of markets. If we borrow to spend our way out of the recession, the only place where we can get a quick return is in the construction area. Apart from insulating houses and building new schools has anyone thought about where all this construction activity will be directed?

Building wind farms looks like good sense to me.

[SPN]

Building wind farms looks like good sense to me.

Money goes straight back out of the Country to pay for the turbines.

With the schools and Insulation more of it stays in the local economy.

There is 20% less money in circulation, so we need to increase the velcity of what is left.

[cyberianpan]

You’ve to get your economy moving again! Unless we get economic activity moving again and get people back into employment, we’re not going to be able to solve the problem in the public finances.

Thats not really a plan.

Indeed - the loss in employment taxes hasn't been huge so far- a large part of the fall in revenue is due to the loss of stamp duty and CGT on property deals . Seems like Gilmore is calling for the return of the property bubble - and to borrow until we get to there.

cYp