Recovery programme - Posturing in place of leadership

ANY body who expected an FDR or a JFK moment, or even an Obama yes-we-can few seconds, at Dublin Castle yesterday would have been disappointed.

What was needed was a hint of inspirational thinking, more than a hint of determination and as much assurance as is possible in these challenging times.

What we got was a Christmas-cracker package of tax breaks and the promise of a series of venture capital funds worth a total of €500 million to “lure innovative industries to... boost research and development”.

€500 million? When discussing Ryanair’s bid to take control of Aer Lingus Michael O’Leary described €700m as “small money”. Yesterday we reported that U2 are worth an estimated €900m. Step dancer Michael Flatley is reportedly worth €590m.

€500m? Any half-awake banker could lose it before lunchtime. God help us if this is the best we can do.

Nobody expected a “silver bullet” to slay the monster but what we did hope for was a sense of possibility, a sense that the magnitude of the situation had provoked a revolutionary response. A sense the Government had the stomach for the fight as we face into a year that, according to the ESRI, will see anything up to 120,000 people lose their jobs and another 50,000 emigrate.

The package was launched in deeply worrying circumstances. As Mr Cowen was speaking in Dublin Castle, sterling hovered at a record low against the euro.

Even if everything else was rosy, even if we were still queuing to book €2,000 handbags months before they arrived in the stores, this would cause very significant problems. Even if economic activity had not contracted by almost 5% in 12 months, even if retail sales hadn’t fallen by 7.4% in October, sterling’s collapse would have a huge impact on Irish jobs.

According to the CSO we’re amid the largest contraction in economic activity since quarterly records began. Construction fell by 18.4%, housing by 33%. Investment was down by almost 15%. €500m?

If Mr Cowen and his government imagine that yesterday’s package or anything like it is enough to ease the worry and growing anger felt by the tens of thousands who fear for their jobs; enough to win the kind of support needed at this desperate time, they need to think again. We have already endured a botched budget, given reckless bankers free rein and, now, we are presented with an uninspiring rescue package.

It is said that you get the politicians you deserve, but it is hard to imagine what we did to deserve this.