Confidence within is key to our recovery

TAOISEACH Enda Kenny emphasised that actions are being taken to restore economic confidence. The fluctuations of the rating agencies are a reflection of a lack of international confidence, but this also applies within the country itself.

On coming to power in the United States during the Great Depression, President Franklin Roosevelt famously told the American people that what they had to fear most was “fear itself”. That is as applicable in this country today as it was in the United States back then.

Current fears must be banished by the restoration of confidence, and all segments of society need to work together to build that necessary confidence. Social partnership was credited with helping to rescue the country’s economy from the last recession. Some people abused that concept during the Celtic Tiger years, but now the need for real social partnership has never been greater.

Unions are lobbying strongly in the interest of their members, which is important and understandable. But reckless talk of industrial action will only undermine the chances of building the necessary confidence. All sections of society are going to have to play their part. There is no room for crazy industrial action to shelter one segment at the expense of others.

People have been hearing not only about millions but billions of euro having been squandered recklessly. Yet the last government targeted pensioners and those on the minimum wage. Fair-minded people were revolted, as became apparent in the results of the general election.

The Government has indicated that it is going to restore the minimum wage to €8.65 an hour under the revised terms of international bailout. This move is particularly welcome in the circumstances.

The troika representing the International Monetary Fund (IMF), European Central Bank (ECB) and the European Commission were quite positive in Dublin x about the Government’s performance. They noted that Ireland was making “good progress” in overcoming the economic crisis and that the targets set both for the end of December and the end of March had been met by a “comfortable margin”.

IMF director Ajai Chopra credited the coalition government with “making good headway”. The Government undoubtedly welcomes his remarks, but there is certainly no room for complacency. Klaus Masuch of the ECB stressed the need for job creation here.

When pressed to specify at yesterday’s press conference how much would be expended on the jobs initiative, Finance Minister Michael Noonan was unwilling to go into detail.

The decision has already been made, and it has been cleared with the Troika, but the details of the specific funding would only be announced in May, because the Oireachtas has not yet been informed. Surely the people who are ultimately going to have to foot the bill should be informed about what is happening without delay.