Council spells out method for economic uplift

THE National Economic & Social Council (NESC), the Government-linked economic consultancy and advisory board, has said that an integrated policy approach is the most effective way of dealing with the current economic crisis.

The council’s reasoning emanates from the downturn touching on a number of different issues including banking and economic concerns and social and reputational dimensions.

“There are advantages in engaging economic and social organisations in framing and implementing such an integrated, national response to the crisis,” the NESC said in a blueprint for a national response to the recession, published yesterday.

It added: “Ireland’s small size, location and model of economic development make it highly vulnerable to any loss of influence or status in the EU. Ireland now faces a reputational crisis.”

The NESC also warned any return to the boom- time economic conditions of the 1990s should not be expected. Referring to recent crises in the Irish banking sector, the NESC said any corrective policies should ensure a renewed flow of credit to companies and protection to consumers with mortgage arrears.

It also called for banking executives embroiled in recent scandals to be seen to be held accountable, so that Ireland’s EU partners can see that an effective regulatory regime and governance culture is firmly in place.

In response to the NESC report, the Taoiseach welcomed a call for an integrated response to the country’s economic and social difficulties.

“The value of the council’s analysis is as an independent body, bringing a shared understanding among its members, including the social partners.

” I’m confident the report will make an important contribution to public discourse and to policy-making, including in the context of managing the difficult decisions immediately ahead to restore stability to the public finances,” Mr Cowen said.