Stability key to economic growth, says Ahern

TAOISEACH Bertie Ahern will this morning say that continuing economic growth will depend on maintaining industrial peace.

In his keynote address to the Irish Management Institute (IMI) conference in Druid’s Glen this morning, he will say the success of the next round of social partnership talks in the autumn is crucial for continued growth.

Mr Ahern, in an interview ahead of the conference yesterday, said he would dwell on the question of avoiding industrial unrest in the speech, which in recent years has become an annual ‘state of the economy’ address by the Taoiseach.

He also disclosed yesterday that the Cabinet has approved the publication of legislation that can potentially attract an additional €4 billion of investment in managed funds to the International Financial Services Centre in Dublin. Mr Ahern characterised the IFSC in the interview as a key pivot in Ireland’s economic success that has been somewhat overlooked. He will contend this morning that Ireland’s economy is now among Europe’s strongest and the basis for that has been low taxes and strong social partnership.

“The next round of social partnership will be my next headache just after the holidays,” he said. “We will be resuming that and that will be going on for months.

“The important thing I will be saying (this morning) is that sustaining social partnership takes political skill and it takes leadership.

“It takes a real commitment to invest the fruits of economic growth into social policies that deliver for working people,” he said.

In the key passage in this morning’s speech, he will home in on the challenges ahead for the economy:

* We need national stability in a climate of international financial uncertainty.

* We need continuation of industrial peace.

* Above all we need to be vigilant on national competitiveness, especially in the context of the enlarged EU and increasing competition in global investment.

In relation to Fianna Fáil’s political fortunes, Mr Ahern said he believes the corrective action he called for in the wake of FF’s poor local election last year is bearing fruit.

He conceded that Sinn Féin may nibble into his party’s vote electorally. He ascribed this to his party’s role in bringing SF “in from the cold”. Invariably, he said, it will mean some loss in support but it was “a price worth paying”.

While not ruling out the possibility of any coalition variable after the next election - bar with SF - he disputes any view of a potential split between FF and the PDs.