Fine Gael T.D. Tom Hayes has said that a YES vote in the upcoming referendum on the EU Stability Treaty would be the best possible outcome for South Tipperary.
Deputy Hayes will be campaigning vigorously for a YES vote in this referendum to show the world that we are serious about resolving our financial difficulties, something that will instil confidence in investors thinking about doing business in the region. A no vote, he said, would cost households more.
“This country’s fiscal problem was caused by an unsustainable economic model where huge public spending increases were financed by the tax windfall from the property sector. All of us agree that we need to change the way we do business in Ireland. We need better fiscal rules and institutions to stop this from happening again.
“The most important thing we need to do to get our economy back on its feet again is to ensure that our budgets are balanced and to reduce our debt to manageable levels. We cannot have a situation, like what was shown in the first quarter exchequer returns this year, where we are running a deficit in excess of €3.5 million daily. By supporting this treaty we will be ensuring that we have sustainable deficit and debt levels which all support economic growth and job creation.
“The Treaty also provides a safety net for the participating countries by linking it to the European Stability Mechanism. This will act like an insurance policy for all countries, so if in the future a country which has managed its public finances responsibly, but incurs debts it cannot pay, they will receive protection against market speculation. This also provides confidence for investors in the economy if they are looking to invest in Ireland.
“Opponents of the Treaty have labelled this as an ‘austerity treaty’. One thing I am certain of is that if we reject this treaty we would see much greater degrees of austerity and hardship. A no vote would result in households facing higher taxes and reduced services. The referendum will be a once off decision. This Treaty will go ahead with or without us. It is up to us to decide whether or not we want to be a part of this deal” concluded Tom Hayes.