We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Michael Noonan at Fota Island earlier today Eamonn Farrell/Photocall Ireland
steady as she goes

Here's how Michael Noonan wants to end 'boom and bust' economics

The Finance Minister said that overspending by government poses the biggest threat to recovery.

MICHAEL NOONAN HAS said he wants to take the Irish economy away from the cycle of ‘boom and bust’ in the coming years as he warned against government departments overspending.

The Finance Minister was speaking at the start of the Fine Gael think-in in Fota Island this afternoon when he hailed “a lot of good economic news over the summer”.

He said the positive economic indicates are as a result of government policy in the last three years. But ahead of the October Budget he warned that the biggest risk to the recovery would be overspending by government.

“If you’d 20 government departments and they all spent €50 million extra – that’s a billion. At that stage then the weight of expenditure again is pressing down the potential for growth in the economy,” he said.

11/9/2014. Fine Gael Think-In. L to R. Taoiseach E Enda Kenny and Michael Noonan at Fota Island earlier today Eamonn Farrell / Photocall Ireland Eamonn Farrell / Photocall Ireland / Photocall Ireland

Noonan said the economic recovery must now be consolidated, saying: “If you look back, in my lifetime, we’ve had maybe four cycles where it went from boom to boost.

“When it busts, thousands of people, led by the building industry, [are] unemployed, emigration restarts, the kids are scattered all over the world, [it's] hard to get them back. We want to get away from that.”

He said that economies in northern Europe have a model of fiscal prudence with “strong finances, steady growth”.

Noonan said he sees no reason why the economy in Ireland cannot grow for the next ten years pointing to growth forecasts for Ireland this year and next of around 3 per cent.

As Fine Gael TDs, senators and MEPs kicked off their special parliamentary party meeting with a session on ‘a budget to secure Ireland’s economic recovery’, Noonan said he was looking for ideas that can grow the economy and create jobs and not ideas that would involve giveaways for votes.

Read: “Boom and bust” cycle at an end, hopefully — Howlin

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.