Tuesday 25 July 2017

Noonan fires warning at Leo's plan to scrap 'rainy day fund'

Finance Minister Michael Noonan Photo: Tom Burke
Finance Minister Michael Noonan Photo: Tom Burke

Leo Varadkar and Michael Noonan have clashed over the new Fine Gael leader's plans to scrap a 'rainy day fund' in favour of more spending on infrastructure.

Mr Noonan, who will step down as Finance Minister tomorrow, has fired a warning shot for his successor, saying "sudden departures from policy wouldn't be helpful" to economic stability.

Mr Varadkar yesterday outlined that he believes policy changes are needed to ensure more capital investment.

This will involve altering plans for a so-called 'rainy day fund', which the Government was scheduled to use to save €1bn a year from 2019.

Mr Noonan said the fund should be protected even if the Government is under pressure to provide extra money for infrastructure.

Irish Independent

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