Gormley urges no 'alarm' over IMF talks

People should not be alarmed about the current discussions involving the IMF, Minister for the Environment John Gormley has said…

People should not be alarmed about the current discussions involving the IMF, Minister for the Environment John Gormley has said.

The Green Party leader said he believed we were currently at a “crossroads” but that it “could be the making of this country” in terms of restructuring of the tax system and other things that should have been done “a long time ago”.

Mr Gormley said his party had not spoken about the situation since last weekend as he believed it was “the wise approach” not to make a statement until it was “absolutely clear” about the state of play.

He insisted said he accepted the “official line given to us” last weekend that there were “discussions” taking place with the IMF but that “no negotiations” were taking place.

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“That in fact is the case,” he said, speaking to reporters in Dublin.

He believed that even to state that there were discussions was enough to cause a level of uncertainty and that there was no room for "nuance" in the media.

“The thing is, it’s moving on so quickly day by day…that it’s hard to keep up with it. But I believe, and I believe it sincerely, that we have to try as best we can, to let the Irish people know in very plain terms what is going on so that we can allay any fears and concerns.”

Questioned on whether he understood the fears people had about the current situation and about people's belief they had been "lied" to by the Government, Mr Gormley said he “absolutely” appreciated the level of concern and fear.

“I meet people all the time and they are asking me what is going on. What I would say to them is, this is a difficult period, but the fact that the ECB is in here, along with the Commission, along with the IMF, is not something that they should be unduly alarmed about because we are in discussions.

"This is certainly a crossroads, but it could be the making of this country, I believe, in terms of the restructuring of our tax system – things that should have been done a long time ago. Things in fact that the Green Party in Government has tried to do over the last period of time, and that process will now continue.”

Mr Gormley said he believed Ireland would retain its 12.5 per cent rate of corporation tax, which is coming under pressure from other EU member states ahead of any agreement on financial assistance to Ireland.

“This has been an ongoing issue…Practically every political party in this country believes that the 12.5 per cent is something that has been a very good tool for economic development and we want to retain that. Of course there has been a long-standing issue with Germany and France in relation to this, but we have managed to retain it and I believe that will continue.”

Asked if he would predict where any cuts might fall in the Budget, Mr Gormley said this had to be discussed.

“Certainly, budgetary discussions are always secret. They have to be. And likewise, in terms of the four-year plan I think we have to be very careful because it has not been finalised yet.”

Mr Gormley said the four-year fiscal plan would probably be discussed at one final Cabinet meeting over the weekend and that it was hoped it would be published soon after that.

Questioned about the state of the relationships between the government partners, the Minister said he believed they were “as they were before”.

Green Party chairman Senator Dan Boyle yesterday posted a tweet stating "there is a questioning of trust and an adding to uncertainty that is making the basis for being in government much more difficult".

Mr Gormley said: “The fact is, from time to time – and this is inevitable – there will be tensions between government partners.

“And likewise, there will be tensions within parties, as we know. That is simply the case where you have human interaction. But we are there to do a job for the Irish people.

“This is a very difficult time and I believe that we as a party and as part of this Government, have to try and articulate what Government policy is, the approach of Government, so that people understand. Because when there is uncertainty, that causes anxiety, that causes real concern and therefore we have to allay those fears.”