Irish must fix the deficit first, says Glanbia boss
John Moloney, the boss of Ireland's biggest dairy company, the €1.3bn-valued Glanbia, has backed government austerity measures as a means to fix the economy.
"There is a balance to be struck. There is a plan to reduce it (deficit) by €3.6bn. We do have a gap -- like any household -- between income and expenditure at State level. That has to be closed to some further degree. Progress still needs to be made on that," he said.
Last week it emerged that Finance Minister Michael Noonan was poised to roll out a three-year austerity plan, with government ministers told to identify potential cuts of up to €10bn as part of the move to slash the deficit.
There have been calls to reduce the pace of austerity measures in a bid to kickstart the domestic economy.
With the US set for another major stimulus package, there is increased pressure on the Government to find some way of boosting demand and confidence.
Mr Moloney told the Sunday Independent that any stimulus package needed to be directed towards areas where the State will get most bang for its buck.
"If you're not going to drive enhanced earnings for the country then we can't ultimately sustain the debt levels. Therefore the balance between making further changes to where we are and at the same time encouraging sectors that have the capacity to drive income into the country is important."
However, the listed food company chief believes that Ireland is "on the right track".
Sunday Indo Business