Recession plan - Failure to act shows lack of leadership

The call by Fine Gael leader Enda Kenny for a suspension of the national pay deal for 12 months was in terms of Social Partnership, which proved particularly useful over the years in providing industrial peace.

Social Partnership was designed to deal with the economic crisis of the 1980s, and it played a fundamental part in tackling those economic difficulties. With the backing of Fine Gael, the Fianna Fáil government made unpalatable choices in the late 1980s, and the public responded to that leadership in a positive way.

Finance Minister Brian Lenihan emphasised in a radio interview yesterday that the country is currently living beyond its means.