Fianna Fáil has written to the Minister for Finance – warning him about possible changes to plans for a ‘Rainy Day Fund’.
It’s after suggestions that the new minister Paschal Donohoe could scale back his predecessor’s plans – and spend the money on big-ticket items instead.
The country is due to balance its books again from next year – and Enda Kenny and Michael Noonan had proposed to then start putting up to 3 billion euro aside in a ‘rainy day fund’ in case of another downturn.
But it’s reported today that the fund might not be so big – and some of the cash could be diverted to big projects like the long-awaited Metro North.
Health minister Simon Harris says there IS a need to invest in big-ticket items like that.
But it’s sounded alarm bells for Fianna Fáil. The ‘rainy day fund’ was part of their deal to support Fine Gael’s government, and finance spokesman Michael McGrath says the fund can’t just be left with a token contribution.
Finance minister Paschal Donohoe is in Brussels and not available to media – but he’s likely to spell out his plans in a Summer Economic Statement on Wednesday.