The Mudcat Café TM
Thread #133667   Message #3042629
Posted By: Don(Wyziwyg)T
29-Nov-10 - 06:58 AM
Thread Name: BS: Subsidy to Ireland to increase UK deficit
Subject: RE: BS: Subsidy to Ireland to increase UK deficit
""We do have a trade surplus with Ireland.(Not the same as profit BTW)""

I know that Keith, but it does equate to our government getting a whole lot of extra taxes on the money our companies earn from selling in Ireland in excess of what it costs buying from Ireland.

And, BTW, yesterday I saw a breakdown of what we are actually spending.

Our total spend of £7 billion comes from two sources.

1. A European Union fund which we pay into as a matter of course, regardless of who gets help from it. That fund is supplying £4 billion.

2. A loan which our government has taken out, and is re-lending to Ireland. This £3 billion loan, is made at an interest rate of 5.8%, a rate consierably higher than we are paying to borrow it in the first place.

This is sounding less of a risk with each revelation, and although the loan is long term, the rate is probably better than we would get from leaving the money in the treasury.

I think it makes good business sense, but of course some people don't want this government to make good, or reasonable, decisions. It's too embarrassing after the complete dog's breakfast made by the last bunch.

Don T.