Kenny warning over referendum

Taoiseach Enda Kenny has backed a warning by the Minister for Finance Michael Noonan that a no vote would result in tougher budgets…

Taoiseach Enda Kenny has backed a warning by the Minister for Finance Michael Noonan that a no vote would result in tougher budgets in future

Agencies had already indicated “if the people want to turn down the fiscal stability treaty that a downgrade of the country will follow”, he said

Mr Kenny said that companies abroad wanted to know “what the future’s going to hold if they invest serious money here”.

He urged voters to give a resounding Yes on Thursday. There would only be one vote and the text would not be changed, he said.

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The Taoiseach was speaking earlier today at the launch of some 40 jobs in Blanchardstown at Irish start-up company BuyersClub.ie

Mr Kenny told gathered international media that he did “not contemplate” a No vote. He said there were a few fundamentals that the Irish people understood ; do not destroy the line of investment in the country which is serious implications for job creation , keep open access to a permanent fund if needed, and make other countries measure up to good budgeting rules.

Earlier today the Mr Noonan warned that the Government cannot afford to be complacent in the final run up to the fiscal treaty referendum.

Speaking in Limerick, Mr Noonan insisted the campaign to secure a Yes vote would continue right up until the moratorium.

“We have had a long history of referenda in this country and they can swing at the end, so the Government is by no means complacent,” he said.

The Minister also repeated his warning of tougher budget cuts next year if the referendum is defeated.

“It stands to reason that the uncertainty created by a no vote would result in growth estimates for next year being marked down. The OECD said last week we are going to grow by 2 per cent next year, which will put us right up at the top of the European growth table,” he said.

“This year we have been creating 1,000 jobs a month through inward investment mostly from the United States. They (US businesses) want stability, certainty and want to have confidence in the country. Anything that gives them a different readout about Ireland, they will stall on their decisions and we would have to mark down growth.”

Mr Noonan said Ireland would also be denied access to the ESM fund next year if the No vote is carried.

“The other thing is we would have to access to the bail-out fund which will be available at 2013. That is the ESM fund and if there is no access to funds, I would have to speed up the correction and plan a tougher budget.”