Economy at risk from possible slump in house prices

IRELAND’S economy is in good health but could be at risk from a slump in house prices, weaker export markets and a US recession, according to key Government advisers.

The assessment came in a report published yesterday by the National Social and Economic Council (NESC), which said the economy was at risk from a continuing lack of competitiveness.

The report, called People, Productivity and Purpose, is one of a series of wide-ranging briefs prepared every three years by the NESC for the Department of the Taoiseach. Used to influence and inform Government policy, the report also assesses the future prospects for Irish society, as well as the environment.

In making recommendations for future Government policy, the NESC said ministers had to address issues of a comprehensive health service and bring about a sea-change in poor public services and the below-par education system.

It said: “The core challenge to the public sector is to replace a vicious circle - characterised by slow change, unsatisfactory standards, declining public support and inadequate investment.” High standards, openness, continuous improvement and high investment must become the norm, the NESC said.

The country’s public authorities must also improve so they can combat what the NESC said is a perception that they are beset with inaction, weakness and a resistance to change.

Rising births and migration continue to result in a booming population, according to the report, and by 2036 immigration could be the largest single factor affecting population growth.

The authors said there had been major improvements in health and education but they remained concerned about people being left behind.