State 'must be facilitator not a player'

THE State should not be involved in running businesses unless to do otherwise risked damaging the security of the country.

One of the things that held us back for so long was our inability to foster and unleash market forces into the economy.

So said Limerick University president emeritus Ed Walsh in his address to the ISME annual conference yesterday.

Making Ireland More Enterprising: Fundamental Reform of the Public Sector was the theme of his address.

Ireland has taken far too long in divesting itself of public sector activities that could be delivered more effectively by the private sector, he said.

"The distraction of running State enterprise and delivering public services has diverted the energies of public leadership that could be better applied elsewhere.

"Without the pressures of running State enterprises the State could do far more effective work on behalf of the economy by providing key infrastructure that no one else can.

"That ought to be its role and not running businesses the private sector is better equipped at," said Professor Walsh.

In his view, the State should concern itself with putting in place visions for the economy to ensure we deliver on long-term growth to meet the future needs of our society.

Doing that requires painstaking effort.

To ensure success thereafter requires the necessary legislation and arranging the right environment and infrastructure to support the vision.

This is where the State can come into its own as a facilitator rather than as a player in the free enterprise system, he said.