Taoiseach Brian Cowen has appealed to the Irish people to use their “can do” spirit and deploy their sense of solidarity in the face of the economic challenges ahead.
In an unscripted address at a function in Dublin yesterday evening, he exhorted business leaders and the community at large to pull together so that the State could quickly revive the growth achieved in the past decade.
He also strongly defended the Government’s adherence to social partnership. The Taoiseach, who was guest of honour at a Dublin Chamber of Commerce dinner, warned that the standard of living was likely to drop by 10-12 per cent in the coming years.
"Yes it's a step back but we are in a far better position than previous generations that had to contend with with less opportunity," he said.
Mr Cowen said labour costs would have to fall, and that the country would need to invest in infrastructure, education and research and development to weather the economic storm. He also said a return to "back to basics living" might be necessary and appealed to the Irish people to pull together to help deal with the economic challenges.
"The one thing that characterises their success is their self-belief. If we decide to wallow in the sea of doubt do not be surprised if we remain in the turbulent waters that we are in today," he said. But he added that it would be difficult. "We owe it to the next generation. We have had some good times. We have had better times than previous generations and perhaps the next.
"The profound changes that are happening in the global economy mean that we won't revert to the high rates of growth but we can revert to growth more quickly if we stick together as a community."
Mr Cowen also said the decision by Government to stay with the social partnership process. "We must work together. Without working together we will not get through it, such is the scale of the challenge we face," he said.
"The profound changes that are happening in the global economy mean that we won't revert to the high rates of growth but we can revert to growth more quickly if we stick together as a community."
Speaking without notes for 17 minutes in a sometimes impassioned address, he directed his remarks at what he described as the sense of cohesive nature of the community. He received a standing ovation from the close to 300 guests.
The Irish people had the qualities required to meet the challenge posed in these difficult times, he said.
Mr Cowen said he understood many people were finding it difficult to stay in the game, that Ireland had gone from a position of “unknown prosperity to suddenly survival stakes”.
Outlining the task that now faced the economy and Government, he said “jobs, jobs, jobs” had to be the priority in the coming years.
“We cannot say that suddenly we lost our entrepreneurial can-do spirit that has brought us to where we are today.”
His remarks came as more than 900 jobs were lost on both sides of the Border.
Mr Cowen said political leadership required a cohesive, rational and determined effort to get the country through the problem and “pull us through”.
On social partnership, he contended that its detractors did not understand its importance and that all the sides in the process understood the full scale of the problem.
Some people regarded leadership as operating in a vacuum and deciding to govern by fiat, he said, adding that that was not the best way to lead in a modern democracy.
He also defended the decision by Government to stay with the social partnership process when others were urging it to take earlier decision on the economy.
“I decided that I would use that month of January for that purpose and I am glad I did.
“I don’t believe for a moment that the idea that that is somehow a prevarication or abdication of responsibility. I don’t accept that.
“We must work together. Without working together we will not get through it, such is the scale of the challenge we face.”
Mr Cowen said the country must now go back to basic living, saying that the hubris of the past – that Irish people could do it all themselves – had come crashing down.
“That sort of arrogance has no place if Ireland is to forge ahead again,” he said.
Mr Cowen said he spoke extemporaneously because he wanted to stare the business community in the eye while spelling out the situation.
He said Ireland should recognise the solidarity that the European Union had brought, adding: “Our future is in Europe for all its faults.”
Arriving at the event, he indicated that preparations for the recapitalise Allied Irish Banks and Bank of Ireland were well advanced. According to some financial sources, all that remains to be finalised are certain “technical” aspects of the recapitalisation transactions.