Sutherland: Ireland’s woes being exaggerated

One of the country’s top international businessmen has insisted Ireland is not a ‘basket-case economy’ and will not be destroyed by this recession.

Former EU commissioner Peter Sutherland said today that there was a real danger that Ireland’s economic woes were being exaggerated.

Sutherland has held prestigious posts such as director general of the World Trade Organisation and key positions on the boards of British Petroleum, Delta Airlines and managing director of Goldman Sachs International.

He said the gloomy picture of the country being given at home and abroad did not reflect the reality.

“We still remain a wealthy country but we have serious problems,” he said. “The position is not as bad as is being painted. The fact is that Ireland has great strengths. Our industries are basically modern industries. In lots of ways, the Irish economy is very resilient.”

The downbeat image of Ireland, as viewed by international investors, can have a dangerous affect on the country’s bid for recovery, according to Mr Sutherland.

“It’s the public finances that are the problem, but Ireland is not the basket-case that is being portrayed at home and abroad,” he added. “We’ve got out of trouble before and we can do it again.”

Sutherland said the emergency Budget could have “appalling consequences” on families, but said it was the minimum required in the circumstances: “We allowed a property bubble to destroy our public finances. But Ireland is not going to be destroyed by this.”

Meanwhile, a report for Government on the implications of establishing a National Asset Management Agency warns taking over loans at a knockdown price may significantly worsen the capital position of the banks.

It says this may require a further injection of capital into the banks and the new agency.

Article courtesy of the Evening Echo newspaper.