Lynch's rescue plan

BUSINESSMAN PHILIP Lynch took time out from formulating Moonduster's latest offer for Irish Continental Group to address an Irish Farmers' Association gathering in Mullingar yesterday to give his insight into how Ireland Inc might lift itself out of recession.

The One51 boss called for the banks to be recapitalised, for our governance structures to be slimmed down and more intensive use to be made of the land.

"The banks are not lending at the moment because of low liquidity levels," he said. "Banks are not lending to each other, they are not lending to customers. This is having an increasingly negative impact right across the Irish economy. Businesses of all sizes and in all sectors are being adversely affected.

"The medium-term consequences of this are a spiral downwards in economic activity. The recapitalisation of the banks is an urgent matter and the sooner it is addressed the less damage will be inflicted on the very many good and strong businesses that have been trading profitably and are providing excellent employment."

Lynch said the National Pension Reserve Fund should be central to this recapitalisation.

He also had a swipe at Bertie Ahern. "Brian Cowen inherited a Government cobbled together by Bertie Ahern. The Independent TDs, Greens and PDs have more influence and power than FF ministers and backbenchers.

"Why does a country the size of Greater Manchester need 166 TDs, 60 Senators, 833 county and city councillors, 744 town and borough councillors, 154 State agencies etc?"

Lynch said we should increase land use for energy generation; return to intensive crop production; bring back the co-op system to support small producers and involve credit unions; focus on high-quality vegetables, fruit and bee-keeping; and accelerate re-afforestation.

We can only imagine he got a standing ovation from his farmer audience.