Kelly's economic solution 'ridiculous': Varadkar




The Taoiseach has again ruled out any change in Ireland's 12.5% rate of corporation tax, while Transport Minister Leo Varadkar has said a suggestion from economist Morgan Kelly that Ireland should pull out of the bailout is "ridiculous".

Enda Kenny made his comments during a special Dáil sitting to mark Europe Day.

"Our 12.5% rate of corporation tax is and will remain a cornerstone of this country's economic policy," he said. "It cannot be changed without our consent...and that consent will not be forth-coming."

Mr Kenny added: "It does nobody credit to call (the tax rate) into question, or to seek movement on this issue...(That) does damage to Europe's standing in the eyes of the Irish people."

Meanwhile, Transport Minister Leo Varadkar said a radical solution to Ireland's debt crisis put forward by economist Morgan Kelly last week was "ridiculous".

Leo Varadkar's comment come after an Irish Times article in which the UCD economist said Ireland must pull out of the EU/IMF bailout deal.

Morgan Kelly said the country would face bankruptcy otherwise, with Ireland's debts likely to hit €250bn by 2014.

Minister Varadkar said that Morgan Kelly's views should be heard, but that his suggested solution on this occasion was "ridiculous".

"It's always important to listen to what Morgan Kelly has to say. He was one of the contrarians who was right about the banking crisis and others wouldn't listen," said Mr Varadkar.

"But that doesn't mean he's right all the time. My big concern is the prescription that he's offering. So, while Morgan Kelly's analysis should be listened to, his solutions quite frankly are ridiculous."

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