Sir, – It is only through a community response and heeding the warnings and advice given that we can get through this. While the Government takes measures to help reduce this pandemic’s impact on our people, it also needs to look at the wider economic consequences.
Some of those consequences are lower productivity in the workforce; employees and the workforce in general being unable to meet their mortgage and rent repayments, although thankfully we have seen banks and the Government institute measures from rent freezes to mortgage deferments; and supply chains being exposed which need to be protected.
While the Government will rely initially on our rainy-day fund to help with the most vital of services, and that will be in health, we must consider the impact the pandemic will have going forward.
We have only come through a period of austerity but we can do it as a nation once again if we stick together.
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Most economists and financial experts say that a proper fiscal response or stimulus is vital and that we need a targeted industrial response so that small firms and other businesses can recover quickly.
Further initiatives like quantitative easing are not seen as something that we can rely on because of the widespread hit to consumer confidence. Households will be cash-poor and reluctant to spend on large household items, only buying the essential items.
Monetary response by Government is vital and this will help alleviate cash flows by banks to business and industries who will look to have payments on loans deferred or new loans put in place at 0 per cent interest.
After all, we did bail the banks out in the last financial crisis.
A freeze on rates, rents and VAT could also alleviate the problems we are seeing right now with the closure of businesses and the loss of many jobs. Getting support for marginal businesses or companies is vital to help them trade through this period.
What we need is support for our service sector which is essential, and it requires a coordinated fiscal response to target industries and small firms that are very vulnerable.
The Government will have to provide more direct support or stimulus into the economy to support our employees, self-employed and businesses and provide guarantees to our banking institutions that extend credit to companies in order for them to survive. – Yours, etc,
CHRISTY GALLIGAN,
Letterkenny,
Co Donegal.