McWilliams is right about borrowing
Sir, – David McWilliams’s article “If I were Paschal Donohoe here is what I’d do” (Analysis, September 28th) has set me thinking. He argued that the State should take advantage of amazingly low international interest rates and borrow vast funds to improve radically our transport infrastructure for the benefit of future generations.
An alternative would be to borrow vast funds for both transport and State housing.
According to the government stocks pricing report published daily in your business section, 10-year Irish bonds are currently priced to give a yield of minus 0.04 per cent. Yes, international banks and funds will pay us money so that they can lend to us! The 25-year bond will cost us an amazingly cheap 0.6 per cent per annum.
I propose that the Government tap these international bond markets now to raise €10 billion to €20 billion to be dedicated to the State building thousands of starter and family homes across the country. We did it when the country was broke, and we built thousands of homes in Marino, Artane, Finglas, Drimnagh, Crumlin, Tallaght, and many rural towns.
My fear is that the Government appears to have lost any management ability to carry out large projects on an efficient and effective basis. But I take heart from the motorway building programme of less than 20 years ago. It can be done. – Yours, etc,