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Donohoe: Decisions around pandemic supports will be made 'towards the end of June'

Finance Minister Paschal Donohoe has said decisions around extending pandemic supports for people...
Jack Quann
Jack Quann

09.41 16 Mar 2021


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Donohoe: Decisions around pand...

Donohoe: Decisions around pandemic supports will be made 'towards the end of June'

Jack Quann
Jack Quann

09.41 16 Mar 2021


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Finance Minister Paschal Donohoe has said decisions around extending pandemic supports for people will be made 'towards the end of June.'

He also said the issue of higher taxes will be made 'in the years to come'.

It comes after members of the Eurogroup - of which Mr Donohoe leads - agreed to continue with a supportive budgetary stance through the rest of this year and into 2022.

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The group said this would help ensure a smoother path to recovery.

But Mr Donohoe told Newstalk Breakfast there will be no 'cliff-edge' ending to the supports.

"We've made really clear that there won't be a cliff-edge to that support, that we will looking to adjust that support as health circumstances improve but not in a way that could undermine our ability to recover.

"We will lay out the detail of that, for example, towards the end of June when we'll have to make the next decision in relation to the Wage Subsidy Scheme and the Pandemic Unemployment Payment".

On tax and expenditure changes, he said these decisions will be made over the coming years.

"I believe the issue of higher level of taxes is one for the years to come, and it will depend fundamentally on whether we decide we want to have a permanently bigger State and permanently bigger government than we have at the moment.

"And if we want that permanently bigger government to be significantly bigger than the one we have at the moment.

"I believe as income recovers, we'll need to make sure that employers and employees get some of that income back into their purses, into their wallets."

But he said that the pandemic measures will not last indefinitely.

"We've lots of emergency measures in place that are costing well over €1bn per month - and we won't be able to continue with those big emergency spending programmes when we get through the health emergency.

"If we continue for them, we'll either have to borrow at a time in which we won't have to borrow - or at that point, that will force a change in our taxes".

On Sinn Féin calls for Tánaiste Leo Varadkar to resign over his leaking of a confidential document, Mr Donohoe said: "There's a Garda process underway, we need to support that process - not look to undermine it.

"And the Tánaiste has said he will participate in that process fully.

"Sinn Féin revealed, yet again, that what they're always interested in is a political head, not interested in an answer.

"We have a process underway in relation to what the legal standards are and whether the law was breached".

Mr Donohoe described Mr Varadkar as "a man of the highest standards and holds himself to the highest standards every day".

Donohoe: Decisions around pandemic supports will be made 'towards the end of June'

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Main image: Minister for Finance Paschal Donohoe arriving at Dublin Castle for a Cabinet meeting. Picture by: Sasko Lazarov/RollingNews.ie

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Eurogroup Higher Taxes Newstalk Breakfast Pandemic Supports Paschal Donohoe

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