Recession stabilised and State's future very good, says Lenihan

MINISTER'S VIEW:IRELAND HAS a "very good future", and a very severe recession had been stabilised, Minister for Finance Brian Lenihan said yesterday.

He noted the United Kingdom had sought IMF assistance in 1976 and had come out of it after a few years.

“Of course I regret the fact that we have to go to a lender of money of last resort, but we have to do this . . . we have to make sure the pass machines function, that people are paid their salaries, people are paid their wages, that pension payments are made, that social welfare payments are paid.”

“We have in the last two years made tremendous progress with our fiscal plans . . . we’ve done the right thing, we’ve taken the correct course of action.”

He said the amount of debt incurred by the State was still to be determined in negotiations.

“The entire political system owes it to Ireland, not any political party, to ensure that this [four-year] plan is adopted, supported, and the budget is proceeded with.”

The Minister said the plan would be published tomorrow.

He stressed that the rescue package had been described by Central Bank governor Patrick Honohan as a loan not a bailout, and that people should “respect his terminology”.

Questioned on the Government’s communications to the public over the loan, Mr Lenihan said he had given “very ample explanations at all stages of what is afoot”.

“This matter came before the Government on a political level last Tuesday morning. I got a clear mandate for the steps I took in Brussels at the euro group meeting that evening.

“On Wednesday morning, I went on ‘Morning Ireland’ and explained the position and explained the position very clearly over the weekend.

“In financial matters, there are matters of serious discretion, and ministers for finance simply cannot go before microphones and announce market reactions every half hour.”

During his doorstep interview, Mr Lenihan, who was accompanied by a sizeable Garda presence, was heckled by a man who told the Minister that he should be ashamed of himself for ruining the country. The man was then ushered away.