Rainy day fund
Sir, – Your editorial of October 10th welcomes the establishment of a rainy day fund. The inference seems to be that this is a noble belt-tightening of current consumption in order to set aside something for future emergencies.
Yet the back page of your budget supplement makes it entirely clear that there is no such self-sacrifice involved and that this initiative is being entirely funded by borrowing.
I doubt whether any self-respecting financial advisor would suggest to their clients to borrow from AIB in order to set up a rainy-day deposit with Bank of Ireland. – Yours, etc,
Sir, – It seems that the so-called rainy day fund is to be partly sourced from €1.5 billion from the Ireland Strategic Investment Fund.
Isn’t that the equivalent of moving a tenner from your coat pocket to your trouser pocket and then proclaiming that you are now a tenner better off? – Yours, etc,