Taoiseach defends handling of the economy

THE Taoiseach and Finance Minister Charlie McCreevy led a robust defence yesterday against criticism of the Government’s handling of the economy.

The economy was down all over the world, Mr Ahern said. And this means there is less money around.

However, the Government was abiding by its commitment to increase spending by 14% this year, he said.

“We are going to spend well over 14%, so as I have continually said there are not cutbacks in the Book of Estimates for 2002 but neither can we allow a situation where 14% can turn into 20%,” he said.

“Revenue was probably down by 500m, so the economy had to managed carefully,” Mr Ahern said.

“We have to manage a situation that is difficult but not in any way as tough as it was seven or eight years ago,” he said.

Arriving at the Fianna Fáil parliamentary party seminar in Killarney the Taoiseach denied there was disgruntlement among Fianna Fáil backbenchers.

“We all have concerns but there is no disquiet,” he said.

The purpose of the seminar was to focus on the Nice Treaty campaign, Mr Ahern said, but the handling of the economy would also be addressed.

Dissident TDs had complained that they were not being informed of cutbacks in spending since the election and that this was making it difficult for them when dealing with complaints from their constituents.

Accepting that the supply of information to backbenchers had not being as intense as normal, Mr Ahern attributed this to the change in personnel in the party press office since the election.

“There has been far more talk and communication than there would be any other year. I don’t accept there has been any breakdown in communications,” he said.

Mr McCreevy told his colleagues that the Government had not made promises during the election campaign and had always said that commitments were dependent on the economic conditions.

The success of the last Government was its sane and sensible economic policies and this would also be the hallmark of the present administration, he said.

To illustrate his point Mr McCreevy said that when the election manifesto was unveiled, a cabinet colleague had said:

“But when are we going to have the real manifesto with the real goodies in it?”

Mr McCreevy said the individual concerned was absolutely astounded and predicted that the party could not win the election without making promises.

The Taoiseach said there was an awful lot of interest being expressed from the private sector in developing the national stadium. “I’d do nothing else except talk to them if I had time to do it,” he said.

Mr McCreevy denied there was any tension between him and the Taoiseach over the national stadium issue.

“Never. Not one bit.” he said.