Cowen hits out at Hobbs

Minister for Finance Brian Cowen has hit out at Rip Off Ireland presenter Eddie Hobbs’ claim that low-cost Ireland is a myth.

Speaking on RTE radio’s Morning Ireland today, Mr Cowen said: “I don’t accept that it’s a myth. The share of national income as a percentage of GDP in this country as it goes in tax is 30 percent, as compared to an EU average of 40.”

Mr Cowen maintained that while prices in Ireland have risen by 30 percent since the present Government took office in 1997, earnings have also risen by 50 percent.

“Yes we are living in a more expensive country, but thankfully we are earning more,” he said.

Mr Cowen warned that a rise in oil prices could reduce Ireland’s economic growth by as much as 1 percent annually.

“We have in the last 10 years had average growth rates of 8 percent in this economy and we are now headed for lower rates of sustainable growth, possibly of about 5 percent.

“But we are in a positive position, with our best year for jobs this year since 2000. There are risk factors that are there on the horizon to a greater extent, and certainly one of them is the oil price issue,” he said.

Mr Cowen remained positive about Ireland’s economic situation, when compared to other countries in the European Union.

“We have to take into account the fact that some of these international trends, like the oil price issue and the weak growth of the Euro zone. I still say we are in a much better position than many of our European counterparts. What I am simply saying is that we have to manage the situation,” he added.