Downing Street Says

Asked for a comment on reports that the Cabinet Secretary had written a paper on a Plan B’ for the economy in the event of an economic downturn, the Prime Minister’s Spokesman (PMS) told the assembled press that the Treasury had already responded to the reports. We had set out our economic plan to tackle the budget deficit in the Budget and Spending Review. The PMS said that recent sovereign debt pressures in Europe showed why it was the right plan.

On whether the paper existed, the PMS said that it was his understanding that Ministers had not asked for any advice on alternative approaches, because we were clear that our plan was the right plan.

Asked if the paper was sent out without it being initiated by Ministers, the PMS replied that he would not get into process questions about what papers were being written in Government.

Asked if there was a Plan B’, the PMS said that the Prime Minister had made clear that he was in favour of fiscal conservatism and monetary activism. We had set out our fiscal plan in the Budget and our spending plans in the Spending Review and those plans were being implemented.

Put that Ireland had made massive cuts and were still suffering a crisis, the PMS said that the Irish Government had had to reinforce their measures. The PMS added that he didn’t think anyone would suggest that we should go slower in regard to cutting the deficit.

On whether the paper would have been based on plans from the previous Government, the PMS said he would not get into specifics, but in his experience, it was quite normal for Government officials to be thinking about alternative scenarios for the economy.

Asked if it was normal for the Cabinet Secretary to be writing those papers, the PMS said he would not get into process issues about who had written what papers.

Put that the Cabinet Secretary had just come up with this off his own bat’, the PMS replied that people were speculating about a paper that may or may not exist. The PMS said that Ministers had not asked for advice on a Plan B as they were very clear that the plan in place was the right plan. The PMS added that it was quite normal for Government officials to think about alternative economic scenarios.

Asked to confirm whether the paper existed, the PMS said that it was not normal practice for the Government to confirm or otherwise, the existence of pieces of advice or papers.

Asked if he accepted that it was in the public interest to know if such a paper existed or not, the PMS replied that the Government wouldn’t confirm whether such a paper existed.

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» Tuesday, December 14, 2010

Economy

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