A SUGGESTION by Minister for Communications, Energy and Natural Resources Pat Rabbitte that that some write off of Ireland’s debt was inevitable drew a sharp response from colleagues.
“The Government has consistently stated that we will honour all our debts when they fall due,” was the official response to the Minister’s comments.
Privately some colleagues were critical of Mr Rabbitte’s decision to make a public pronouncement on such a critical issue at this time.
“There is little doubt that a concerted effort to deal with the euro zone crisis could ease things a bit more for us but the last thing a Government Minister needs to be doing at this stage is implying that we can’t or won’t pay our debts,” said a Government colleague.
A Department of Finance spokesman said that given the nature of the continuing crisis it was especially positive Standard Poor’s had reaffirmed Ireland’s investment grade credit rating.
“The continuation of the stable credit watch is also an additional positive,” he said.
The spokesman said it was positive that action was being taken and that EU leaders were focusing on the problem.
“It is quite clear that this crisis is at an EU and global level, as set out by EU Commission president José Manuel Barroso on Thursday.
“Ireland is on the periphery of this crisis and as demonstrated over recent years we will work with our EU partners to find a credible and workable solution,” said the spokesman.
Last Friday, Standard and Poor’s affirmed its long-term rating on Ireland at “BBB+” and said the outlook is stable.
Taoiseach Enda Kenny and Minister for Finance Michael Noonan have been monitoring developments in world financial markets over the weekend, according to a Government spokesman.
The two men have been in regular contact with senior officials in their respective departments as the crisis continues to unfold.
The spokesman said there were no plans at this stage to recall the Cabinet from summer holidays.
Other Government sources said there was little point in Ministers being recalled as Ireland was fulfilling the targets set out in the bailout package.
