Make sure the banks don't pull another fast one

YESTERDAY I heard an advertisement on the radio encouraging people to buy National Savings Bonds.

Encouraging people to save is a good idea when the economy is growing fast, but it is a means of asking people to postpone spending and is the very last thing we need at present.

On the contrary, we need people to buy and to buy Irish as much as possible. For every euro taken out of the economy in the form of Government Saving Bonds, the government gets a temporary loan and the economy shrinks further than by one euro because of the absence of the knock-on effect of the circulation of money in stimulating growth.

In this context, I dread to think that the Budget might be packed full of other short-sighted and damaging schemes for the sake of getting the books “on track”.

The recent suggestions attributed to the ESRI that budget cuts exceed the original targets because the world economy may slow down, thus affecting our buoyant exports, is an alarming example of current economic “thinking”. We need to encourage spending, investment in new business and enterprise to create jobs and avoid further shrinkage of the economy.

The banks must lend some of our money back into the economy and also assist those in trouble with mortgages on a reasoned and sensible level. Legislation must be passed as soon as possible to ensure the banks do not pull another fast one on the Irish people.

Caitriona McClean

Lucan

Co Dublin