TÁNAISTE MARY Coughlan expressed her continuing optimism about the prospects of dealing successfully with the downturn in the economy.
She predicted a recovery period of between 18 months and two years, and did not anticipate any tax increases in this year's budget.
She did not think tax rises would benefit the economy. "Anti-inflation measures and competitiveness are more important," she said. She was hopeful that Government spending would not have to be cut by any more than the recently-announced €500 million.
The Tánaiste was speaking yesterday in her Donegal South West constituency where she launched a report from a group established to cut red tape for business.
She said at the Ibec North West headquarters in Donegal town that she had accepted a number of recommendations from the High Level Group on Business Regulation that would mean €20 million of savings in administrative costs this year for businesses.
She noted that pharmaceutical multinational Pfizer's decision to close its Little Island plant by the end of the year in Cork was not the end of the line for Viagra. Pfizer said it failed to find a buyer for its Little Island factory and that could mean a loss of 180 jobs by the end of the year.
But Ms Coughlan - who as Minister for Enterprise, Trade and Employment was given a briefing on the situation - said she understood the jobs of over 2,000 other Irish Pfizer workers were safe.
The failed plant was a casualty of a decision to abandon plans for production of a new anti-cholesterol product.
Ms Coughlan said: "They will continue making Viagra and will continue with their research and development work."