Howlin criticises 0% growth outlook

THE Government has criticised the OECD’s move to cut its growth forecasts for the Irish economy from 1.5% to 0%.

The international economic development body yesterday said that it now expects Irish GDP to show no growth this year.

Addressing the Leinster Society of Chartered Accountants, Public Expenditure Minister Brendan Howlin said the outlook was “out of line”.

He said: “The OECD’s assessment of Ireland’s economic prospects for next year [growth of 2.3%] broadly reflect the Department of Finance’s view.

“Its outlook for this year, however, is out of line with our thinking and that of the consensus at this time.”

The Department of Finance expects GDP growth of just under 1% this year and around 2.5% in 2012.

Mr Howlin also addressed the issue of the banking crisis and agreed with the findings of the recent Nyberg report into the causes of the crash, specifically the need for closer co-operation between auditors and the financial regulator/Central Bank in the future.

He said the Government is committed to a “reform agenda”, relating to all aspects of public life, public expenditure, political reform and the banking sector.

He added that he is looking forward to the forthcoming review from the Chartered Accountants Regulatory Board of the 2008 audits of the banks, which is due this summer.

This, according to Mr Howlin, will show “that we can learn from these events and put in place robust structures and procedures, so that they don’t happen again”.

“This work will help to inform debate on the role of auditors,” Mr Howlin said, before adding that the Government plans to introduce changes to how the accounting profession functions here.