THERE IS no need for an alternative to the €15 billion four-year recovery plan because markets will have time to react to it before the Government needs to borrow again next year, according to Minister for Tourism Mary Hanafin.
Speaking at an annual dinner in New York of business association the Ireland-US Council, Ms Hanafin told The Irish Times that the plan would hopefully “settle” the bond markets as they would have from the budget on December 7th until mid-2010 to react to the plan.
“You have that time to let the markets react so there is no need to be looking at any other options,” she said when asked if the Government should consider preparing an application to the European bailout fund as an alternative if the plan does not work.
She said the acceptance of the plan by the Irish public would help give credibility to it and settle the markets.
Despite Government borrowing costs spiralling, there was no need to bring forward the budget or to announce details of the plans sooner. “It has to be right. We are taking an awful lot of time with it, a lot of Cabinet meetings, a lot of discussions with the Department of Finance.”
The council honoured Jeff Smisek, who has become the chief executive of the world’s largest airline with the merger of Continental and United Airlines.
Ms Hanafin said the merger of United and Continental, the only transatlantic airline to fly into Dublin, Belfast and Shannon, would help the Government reach its target of eight million visitors annually.
“The only way we are going to increase our target numbers to eight million is by having access,” she said.
Mr Smisek told The Irish Times that the merger would allow the airline over time to expand its service into Ireland as Continental now had access to wide-bodied aircraft through United Airlines and these could be put on existing routes.
“Every route should benefit from the merger just because of the scope of the network itself,” he said.
The airline had been operating into Ireland for 12 years, and would continue flying into the country despite the economic difficulties. “When we go into a market, we stick with it – we stick with it through thick and thin.”
Mr Smisek said the $3 billion merger, which creates a company of 87,000 employees, was “the perfect marriage” as the two airlines had very little overlap.
