Kenny warns of dangers of No vote

Taoiseach Enda Kenny has warned of unknown consequences for Ireland if the fiscal treaty is rejected in next week's referendum.

Speaking in Midleton, Co Cork today, Mr Kenny denied suggestions that the referendum would be comfortably passed and again urged the public to vote Yes on Thursday.

"There’s nothing ever in the bag as regards politics," he said.

The Taoiseach said that backing the treaty would lead to continued investment in the country and a guarantee of access to further funding while the consequences of voting No were unknown.

He claimed the best solution for Ireland would be for its people to pass the referendum.

"There’s an instinct about the Irish people that the right thing to do is to vote yes...we are fully funded until the end of 2013 (and) a yes fund guarantees access to a permanent fund beyond that, a no vote clearly doesn’t."

The Labour Party took the fight to the No campaign this afternoon when its deputy director of elections Dominic Hannigan and other TDs erected posters outside Sinn Féin's offices in Parnell Square, Dublin 2.

The posters are meant to highlight Sinn Féin’s track record of getting it wrong when it comes to major decisions.

Campaigners urging a No vote in next week's referendum warned of the effects on services provided by local authorities if the fiscal treaty is passed.

Ten councillors who back the Campaign Against Household and Water Taxes gathered at a press conference in Dublin this afternoon to urge members of the public to vote against the treaty.

Independent Sligo councillor Declan Bree said the treaty will lead to over ¤6 billion in extra taxes and cutbacks.

“This will impact greatly on the provision of local services, said Mr Bree, a former Labour TD.

People Before Profit Cllr Huey Lewis said that contrary to what the opinion polls say, there may be a very big shock awaiting the Government next week.

"We are acutely aware of the threat to provisions of services at a local level and if those who have already been affected by cutbacks come out and vote then the treaty will not be passed," he said.

Socialist Party Cllr Ruth Coppinger said that even if the treaty is passed, people will continue to fight against austerity measures.

"Win or lose in the referendum there will be battle in the autumn against the household tax and against water metering and I can guarantee that you haven't seen anything yet because people simply will not be able to sustain such burdens," she said.

Elsewhere, the Communist Party said Ireland should borrow money from sovereign wealth funds rather than return to the markets or look to the European Stability Mechanism (ESM) for a future bailout.

The party, which is advocating a No vote, said there are several examples of countries repudiating their debts and accessing money from sovereign wealth funds.

Party secretary Eugene McCartin said the Icelandic Government was accessing money from the giant Norwegian sovereign wealth fund having told the UK and Netherlands that it would not pay back bank debts.

In a similar fashion, Cyprus had accessed emergency funding from the Russian sovereign wealth fund to deal with a financial crisis.

He said the Chinese sovereign wealth fund, the largest holder of American Government debt in the world, the Russians, the Norwegians and various Middle-East funds could be tapped for money if Ireland rejected the bank debt and the stability mechanism for future funding.

"We can negotiate with these people and get better terms," said Mr McCartin.