‘In Britain’s interest’ to help Ireland

THE British chancellor George Osborne said he has offered to help out Ireland with a bi-lateral loan to the country as it would be in Britain’s national interest.

He has already had discussions with Finance Minister Brian Lenihan, including during yesterday’s meeting of EU finance ministers in Brussels.

A spokesperson for the Minister said Britain had certain concerns about Ireland’s economy given that they are a net exporter to the country. They are also worried about the effect on Northern Ireland’s economy, he added.

Mr Osborne, who in May announced cuts of more than €7 billion from the British budget, said in relation to offering a loan to help Ireland, “We will do what we regard is in Britain’s national interest – that guides our approach.

“Ireland is our closest neighbour and we share a land border. It is in our national interest that the economy is successful and the banking system is stable. I made it clear that the UK stands ready to assist however we can to bring about stability”.

Any help would not be because they were concerned for the effects on British banks but because the countries were neighbours, he said. Britain’s decision to offer aid was “off our own bat” and there had been no request from the Irish government to make such an offer.

“I have had a number of discussions with Mr Lenihan including today – private discussions but we have also in public and private expressed my support for him and the tough job he has got,” he said.

Mr Osborne, 39, who is heir to the baronetcy of Ballentaylor in Co Tipperary and Ballylemon in Co Waterford, refused to talk about what sums of money might be involved.

He added they were looking at a number of different avenues of how they could help, including bilateral loans. But Ireland had not requested assistance and any discussions were “precautionary” in case they do decide to ask for help.

Britain is also involved in the European Commission’s loan mechanism having agreed to guarantee just under €8 billion. They would have to agree to this being used in the event of Ireland deciding to tap this fund.