Labour ard fheis: Party’s €1.9bn rainy day fund

Labour is to announce plans for a €1.9bn rainy day fund in the event of a fresh economic downturn, a figure that falls short of Fine Gael’s €2.5bn and has been accused by Fianna Fáil of being a “pale imitation” of the opposition group’s own initiative.

Senior party figures confirmed the move to the Irish Examiner at their ard fheis in Mullingar on Saturday.

It is understood Labour’s election manifesto will include a budget stabilisation fund of up to €1.9bn when it is announced next week in order to ensure there is an “economic buffer” for the country.

The fund, which would be part of the overall spending figures but separate from tax and public service commitments, is far less than the €2.5bn outlined as a “rainy day” fund by Fine Gael Finance Minister Michael Noonan last week.

Speaking to reporters, Education Minister Jan O’Sullivan said putting money aside to ensure any future economic issues can be managed makes sense. However, she openly questioned whether Fine Gael’s funding level is too high.

“I think it makes sense to have a rainy day fund, but €2.5bn? I’m not necessarily agreeing with that figure,” she said.

Her party colleague, Social Care Minister Kathleen Lynch, said any spending is “predicated on the economy continuing to grow in the way it is”.

Fianna Fáil’s Michael McGrath, who announced plans early last month for a rainy day fund if his party gains power, said the Government parties moves are a “pale imitation” of his own plans and that it was “not a fund at all, just a commitment not to use all the fiscal space available”.

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