Cowen promises to create central banking commission

The Taoiseach is warning that living standards in Ireland will fall and that taxes are going to rise.

In his speech to the Fianna Fáil Ard Fheis in Dublin last night, Brian Cowen said the coming three years will be tough, but Ireland will recover.

He promised to create a new central banking commission that incorporates the functions of the Central Bank and the Financial Regulator, but with increased powers

The Taoiseach also pledged to bring the public finances under control by 2013.

But he warned that this means that taxes will have to rise.