MINISTER FOR Transport Leo Varadkar has provoked the anger of senior Government colleagues for his comments on the likelihood of a second EU-IMF bailout.
Taoiseach Enda Kenny and Minister for Finance Michael Noonan were forced to make public statements to calm financial markets following Mr Varadkar’s intervention.
While the Taoiseach and Mr Noonan refused to be drawn into public criticism of Mr Varadkar, other Cabinet members privately expressed their anger at the remarks.
“This is typical of Leo, talking about things that have nothing to do with his portfolio. He . . . can’t go around giving interviews as if he was having a chat in a Dáil corridor,” said one Cabinet colleague
Another said that while Mr Varadkar had a reputation as one of the brightest in politics, he had shown poor judgment on several issues.
Colleagues conceded that the Minister’s words were open to interpretation. But they were still critical of him for straying outside his brief.
In an interview with a Sunday newspaper Mr Varadkar speculated on when Ireland might be able to return to borrowing on financial markets: “I think it’s very unlikely we’ll be able to go back next year. I think it might take a bit longer . . . 2013 is possible but who knows?”
The Minister added that it might mean an extension of the existing EU-IMF programme or a second initiative.
Taoiseach Enda Kenny moved quickly to limit the fallout from Mr Varadkar’s interview.
“People can have their views about the meaning of words, but let me clarify for you again: there will be no need for a second bailout for Ireland in 2012,” he said.
Minister of Finance Michael Noonan has also ruled out a second bailout for the country next year and expressed the hope that the State might be back in the money markets in a small way by the end of 2012.
He said the Government would continue to act in accordance with advice from the National Treasury Management Agency on when it would be possible to return to the bond markets.
“The programme is due to run until the end of 2013 and the start of 2014 and there is sufficient money in the programme to meet all eventualities; so categorically, there will be absolutely no bailout next year in Ireland,” said Mr Noonan.
He added that he did not think his Cabinet colleague should be reprimanded for remarks which he said were made from the perspective of the Department of Transport.
“I think what he said was reasonable in that in his department if you’re looking for public private partnerships to put in transport infrastructure, that it would be hard to get private sector money when Ireland is not in the markets . . . I think that’s the point he was trying to make rather than talking about the bailout in general,” he said.
Speaking in Brussels Minister for Enterprise Richard Bruton said Mr Varadkar’s comments did not represent Government policy. “The Minister for Finance has made it clear that we would want to get back into the market next year . . . we’re working towards the policy agenda to get back into the markets next year.”
He also said the country had no interest in pursuing longer repayments on its existing debt, a policy mooted for Greece but rejected by the European Central Bank.
Fianna Fáil spokesman on Public Expenditure Michael McGrath called on Mr Kenny to issue a statement clarifying Government policy as a matter of urgency. “Minister Varadkar’s view that Ireland is unlikely to be in a position to return to the international bond markets next year and will therefore need a second bailout deal represents a major shift in stated Government policy, if it is in fact shared by his Cabinet colleagues,” said Mr McGrath.
He added that the controversy surrounding Mr Varadkar’s comments “has so far been played down in Government circles. But this is not the first time that a Minister from this . . . Coalition has been quoted . . . saying something the Government has then had to completely disown.”