Like many of you, I have been deeply concerned about news of the Republic of Ireland’s financial crisis and their need for external support to secure their economy.  

 

I instinctively dislike the idea of using UK tax-payers money to support overseas economies, but I am pleased that our Government is offering to assist because the Irish troubles will become our troubles given that perhaps £100bn of UK money may well be sitting in Irish Banks and Ireland is one of our biggest trading partner for UK exports.

 

At a time of public spending cutbacks and financial recovery programmes, it is understandable that many people are alarmed at the amount of money we may end up giving to Ireland.  So I want to thank those constituents who have already contacted me with their concerns and suggestions. 

 

After much speculation, Ireland in now set to begin the formal process of applying for aid from the European Union and IMF and the total level of loans from the UK could reach £7bn.

 

Not only would an Irish collapse directly affect the UK, it would also destabilise the Eurozone and potentially cause other European countries to topple in its wake; especially those countries with large budget deficits, particularly Portugal.   As a former regional chairman for the No-to-the-Euro campaign, I am a pleased to have played my part in keeping Britain out of the Euro.  It was clear back then that, without fiscal and budgetary discipline and Europe-wide harmonisation, the Euro would inevitably face this kind of crisis at some point.

 

I suspect it would be deeply alarming for UK tax-payers if they were to learn that their money was going to prop up the Euro currency given that we are not members.

 

So although it is not ideal, Ireland is a neighbour in need and it is in our national interest to give assistance, provided they adhere to the sensible budgetary disciplines which are likely to be imposed by the IMF.