Ireland's global reputation damaged, claims Smurfit

IRELAND’S INTERNATIONAL reputation has been severely damaged during the economic crisis, according to Dr Michael Smurfit.

The retired former chairman of Smurfit Kappa said the impact was “quite serious,” while speaking at the Friends First Independent Broker and Financial Advisors Conference yesterday.

“I think we have lost our pre-eminent position in Europe – we were once the Celtic Tiger. But voting down the Lisbon Treaty has done more damage than the financial crisis,” he said.

He added that the situation would be far worse if Ireland was not in the European Union.

“It is being in Europe that has kept our heads above water.”

However, Dr Smurfit added that although the economic situation was poor there should be some optimism.

“Things are bad but they have been much worse before and I have lived through much worse times than this,” he said.

He added that it was important for people to support Irish businesses.

“If there is ever a time to buy local products it is now. For the Irish, think Irish and buy Irish.”

Meanwhile European Commissioner for Internal Markets and Services, Charlie McCreevy, said it was unlikely Ireland would choose to disengage from the euro currency.

“There is no Plan B to get out of this. Secondly, in my view, no existing member of the euro currency will be forced out. Being forced out will not happen. I do not think existing members will find themselves in this position,” he said.

Mr McCreevy also added that stronger, more transparent financial markets are critical for future growth.

“It is also important to stress that regulating entails finding a balance between protecting consumers and facilitating competition and that underpins all our work.”

“We need the right supervisory architecture, so as to provide for effective supervision of financial institutions, particularly those operating on a cross-border basis. We also need a sound regulatory framework for all financial sectors,” he said.

“In light of this, the Commission has been leading the way by developing a directive on the taking up and pursuit of the business of insurance and reinsurance, known as the Solvency II Directive,” Mr McCreevy said.

The commissioner added that Ireland’s toxic assets were different from other European countries and higher tax would not solve the nation’s economic problems.

“It is not higher tax that produces higher revenue, it is greater economic activity.”