Cowen rejects ‘economic war criminals’ claim

TAOISEACH Brian Cowen has hit back at comments from ICTU’s economic adviser Paul Sweeney suggesting that the cabinet was made up of economic war criminals because of its budgetary policies.

“That sort of terminology does nothing for a national debate,” the Taoiseach said.

Mr Sweeney had said the Government would undermine growth and recovery by opting for severe cuts in the forthcoming budgets.

But Mr Cowen claimed that the economy was about to start growing, despite the Government committing to take up to €15 billion out of the economy by 2014.

He said the collapse of revenues in 2008 and 2009 had been steadied and commercial activity would start increasing.

“It’s terribly important to recognise that what we are engaged in at the moment is trying to find a means by which we can promote growth in the economy, because growth has to be part of the solution as well.

“And we are moving into a growth phase,” he claimed.

“We have stopped a contraction in 2009 of 10% of GDP now to a position where it has stabilised.”

Mr Cowen was speaking during a visit to Cork when he said the Croke Park deal brokered with public service workers would not need to be renegotiated.

He said it would deliver savings for the economy.

“The commitment on the other side of the table is that full and maximum change in the service will be provided within an industrial relations scenario that provides for industrial peace as well.

“I believe people in the public service are up for the challenge,” he said.

In Limerick his cabinet colleague, Environment Minister John Gormley, said the Government was anxious to find a balance in the budget.

Mr Gormley said that cuts had to be made but the Government could not afford to kill growth in the economy.

“We have to ensure that we make the required adjustment that we get the confidence of the international markets, the European Commission, while at the same time not plunging the economy into deflationary cycle,” he said.

The Green Party leader also said that the commitment to build the Metro north rail project in Dublin would still be met despite the lack of money in the economy.

Mr Gormley said the project was essential to help create jobs.