Fine Gael accuses Govt of blowing economic boom

Fine Gael is accusing the Government of blowing the economic boom of the Celtic Tiger years.

The party was responding to an ESRI assessment that Ireland is now facing into its first recession since 1983, with GNP expected to decline by 0.4% this year.

Fine Gael's finance spokesperson, Richard Bruton, says it is now clear that the Government blew the boom of recent years and failed to anticipate that the housing market - the driver of Ireland's economic growth - would eventually experience a sharp downturn.

"This Government has sabotaged the capacity of the Irish economy to deal with tougher times and there is going to be a direct consequence of that," he says.

"It means that more jobs will be lost, there will be a tougher time for people who depend on public services than should have happened.

"The responsibility is squarely on Brian Cowen's shoulders."