Sir, – I must admit that Minister for Finance Paschal Donohoe’s announcement that he is setting up a “rainy day fund” left me slightly underwhelmed (“Rainy day fund to reach €3 billion by 2021, Minister pledges”, News, May 23rd). Apparently his target is to accumulate €3 billion in the fund in the next three years.
In principle this seems like a good idea, but in reality it is nothing more than a red herring. Why? First, the State is still running an annual budget deficit and therefore it needs all its income to balance the budget. Second, the State still owes over €200 billion, more than a tidy sum. Third, as we know from recent experience €3 billion won’t buy you much in this state (maybe public sector pensions for a few days).
The State is now spending more than it ever did. Despite what a lot of vested interests would have you think, the level of public spending was one of the main reasons why the state went bust in 2008/9. Not a lot has been done to fundamentally change this and now we are about to spend more.
Maybe a rainy day fund sounds mature, solid and it gives a good soundbite, but will it add up to anything material? Not really. What next, “a happy holiday fund” or “a Christmas club fund”? This is just silly “look at how good we are in Government” nonsense.
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Balance the books and start paying off debt.
Maybe give everyone an umbrella in case it rains. – Yours, etc,
BRIAN CULLEN,
Rathfarnham,
Dublin 16.