Fianna Fáil says Irish economy will grow at annual 4.5% rate over next 5 years

Irish
Fianna Fáil says Irish economy will grow at annual 4.5% rate over next 5 years
By Finfacts Team
Apr 16, 2007, 13:23

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An Taoiseach Bertie Ahern TD.

Fianna Fáil has launched its economic policy for the next five years, which the party says will lead to a debt free nation.

Their policy document Protecting Prosperity, The Next Steps Forward was launched by Taoiseach Bertie Ahern and Minister for Finance Brian Cowen. (The FF website had not been updated with launch material at time of this news report.)

The document, which outlines how the party will fund many of its election promises, is designed to bring Ireland close to a zero net debt in five years time.

Fianna Fáil says it can achieve economic growth of 4.5% annually over the next five years if it is re-elected to power. Public spending is forecast to grow at a 6% annual rate compared with 12% currently.

The party also said it could increase employment by 2.5% per annum.

The Economic and Social Research Institute (ESRI) says in its latest quarterly economic commentary, which was published in March, that Irish economic growth will fall from 5.4% this year to less than 4% next year. In a separate report, Davy Stockbrokers forecasts that Gross National Product will expand by 3% in 2008 compared with 7.4% in 2006.

The Minister for Finance said the party will adjust to whatever economic changes occur.

Delivering the National Development Plan is been viewed as a key priority for Fianna Fáil but it has also listed improving public services, tax reform as some of their priorities if returned to power.

The ceiling for PRSI will be removed to address what the party terms an inequality between low and high income earners, the other tax reforms announced at the parties Ard Fheis will cost €840m annually.

The Taoiseach said the party will from today begin to role out the remainder of its policies, which have been carefully drafted over the past number of months.