Mansergh: We must work our way out of recession

Recent difficulties in the banking sector have not turned Ireland into a “banana republic”, Minister of State Martin Mansergh said today.

The South Tipperary TD claimed the past 20 years had been the best period in the state’s history and society needed to consolidate the successes and move forward.

The Dáil is due to discuss legislation on Tuesday which will bring troubled Anglo Irish Bank under state control – just weeks after the Government announced a €1.5bn re-capitalisation plan for the firm.

Mr Mansergh, who last week offered to quit his junior minister post to save money, called on people to be retain their Celtic Tiger-style optimism and self-respect.

“We’re not going to get anywhere by completely throwing overboard our self-respect,” said Mr Mansergh.

“We have achieved a tremendous amount in the past 20 years – they were the best 20 years in our history.

“There will be cycles – we rose very high and we are where we are now. We have to work our way out of this intelligently,” he told RTÉ Radio One.

He added: “But berating ourselves as a banana republic will get us nowhere.”

The Minister of State at the Department of Finance said last week that he was willing to put his job “at the disposition of the Taoiseach” but that his constituents would not be happy if he was demoted.

Meanwhile, Fine Gael today called for a specific Government plan to tackle the growing numbers of young people losing their jobs, which has almost doubled within a year.

A total of 62,311 people under the age of 25 were on the Live Register at the end of December, compared with 33,289 in December 2007.

“This dramatic rise in youth unemployment is a serious warning that only a completely incompetent Government would continue to ignore,” said Fine Gael’s innovation spokeswoman Deirdre Clune.

She added: “These are the youngest members of the workforce and include those that have just completed full-time education or training.

“They are the most mobile age group who have the least commitments which require them to remain in Ireland. If they do not find employment or training within a reasonable time or feel they have a good future in Ireland they are likely to move abroad.”

Meanwhile the country’s largest craft union signalled it would oppose any plans to impose pay freeze or pay cuts on its members.

The Technical Engineering and Electrical Union, which has 45,000 members, accused employer groups of a cynical agenda to scupper the social partnership process.

TEEU general secretary designate Eamon Devoy said today. “The alternative is a return to the bad old days when powerful lobbies such as bankers, developers and big corporations could do their business with Government behind closed doors, unhindered by inconvenient objections from organisations such as unions, which defend the interests of ordinary people.”

Taoiseach Brian Cowen and his officials are due to resume talks on the national wage agreement with unions and employers this week.