FG’s NewEra plan in doubt, says opposition
NewEra envisages the sale of some state assets to fund a major economic stimulus package.
The Programme for Government says the coalition will use the McCarthy report to “target up to €2bn in sales of non-strategic assets” over time to finance the NewEra investment programme.
But Fianna Fáil’s enterprise spokesman Willie O’Dea questioned whether the proceeds from any sales would be used for such investment.
“The Fine Gael election manifesto and the Programme for Government both contain commitments that the proceeds from the sale of state assets would be used to fund this programme,” he said.
“The Government needs to clarify if this is still the case or if the revenue raised by the sale of assets will be now used to reduce the state’s indebtedness.
“If the latter transpires, this would effectively leave the NewEra plan unfunded.
“Without funding, Fine Gael would not be in a position to deliver on the 105,000 jobs promised under this programme.”
Sinn Féin echoed similar concerns about the proceeds of sales being used to pay off debt and called on the Government to reject the recommendations outright.
“Sinn Féin will join with others in strongly opposing this and we will be putting pressure on the Government to not only reject the report’s recommendation of a sale of over €5bn but also abandon its own plan to sell €2bn,” said natural resources spokesman Martin Ferris.
“It is also noticeable that the state will be responsible for the ‘restructuring’ of public companies before they are sold off. Restructuring of course will mean cuts in wages and sackings.
“Contrary to statements from the Government that the proceeds from the sale will go to fund job creation, the report recommends that they go to pay off the debt. In other words, generations of public investment will be thrown down the black hole of the bank bailout.”
