Economic recession - Dáil debate should be encouraged
Gross domestic product (GDP), which measures the value of goods and services produced in the country, fell by 0.8% during the second three months of 2008. This is the second quarterly drop in a row, so the Irish economy has become the first economy in the eurozone to go into recession in the current downturn.
The first sign of the recession was in the construction industry.
The current credit crunch has led to a sharp reduction in capital investment over the same period of last year. Exchequer returns were down by 9% in the second quarter of 2008, and those are likely to be down much more in the current quarter.
Finance Minister Brian Lenihan indicated that one remedy would be to reduce the numbers in the public service. He said he would like to extend to all public services the redundancy programme for administrative staff in the Health Service Executive.
The signs of the recession are becoming more apparent with every passing day. Yesterday, 320 workers at Tyco in Bishopstown, Cork, were informed that their jobs are going to be moved abroad. This could be an ominous sign for other industries.
It was largely through the social partnership process and a degree of political bipartisanship among the main political parties that the previous recession was overcome. All sectors of Irish life should now pull together, because we are facing a serious economic crisis.
In the United States there seems to be general agreement among the Bush administration, and the campaigns of Barack Obama, and John McCain that the current economic difficulties should be above politics. People might well feel that McCain politicised the matter in the manner in which he advocated taking a non-political approach.
Barack Obama is hardly likely to dance to his opponent’s political tune, especially while his opponent refuses to debate the issues.
In this country, the opposition has called for a debate on the economy. People might argue that a Dáil debate would provide more heat than light, but ignoring the views of the opposition amounts to a show of arrogant contempt not only for the parties on the other side of the Dáil but also for our parliamentary system.
The Government should be encouraging a serious debate on the economy, and should provide example by listening. The Taoiseach’s response that the budget will be introduced within three weeks and “the issue will crystallise on that day” suggests a reluctance to listen to constructive suggestions from his political opponents.
No matter what happens, the Government will ultimately be responsible, but ignoring the views of opponents before the budget is an affront to the partnership concept, which proved so successful in rescuing the economy from the previous recession of the 1980s.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
