VISION is required from Government in response to the current economic emergency. The measures introduced in last October’s budget were excessively optimistic and are now desperately inadequate. As the world stumbles in recession, the Government must direct the economy, correct its finances, sustain employment and share the burden of recovery fairly. These are tall orders required of political leadership today. The time for party politics is over.
This society enjoyed unprecedented prosperity and growth for close on 20 years. During that time the better-off sections of society benefited most. It is therefore only equitable that those who gained most in the good years should contribute proportionately now. That was the approach taken by the Swedish government in the early 1990s when it was confronted by a similar crisis. Nobody liked the harsh measures that were imposed. They were seen to affect high earners and the owners of wealth in a progressive fashion, however, and they were accepted by society as a whole. It took three years to turn the economy around.
Some 120,000 public servants protested on the streets of Dublin last Saturday over what they perceived as an unfair pension levy. They were brought there by the Irish Congress of Trade Unions (Ictu) to show what could happen if trade unions were forced to defend the interests of their members by traditional means. It was a chilling reminder of the chasm of industrial strife that could swallow any hope of early recovery. But it doesn’t have to be like that. Ictu general secretary David Begg is making every effort to prevent the dam bursting. He has offered to negotiate a three-year agreement that would address spending cuts, tax increases and measures to reform the financial and economic systems.
The public service pension levy must remain but there is a crying need to demonstrate a fair sharing of the pain.Time is wasting and it is reflecting negatively on the Taoiseach and the Government. We still remain to be convinced that they have got a grip on the scale of the problem. The social partners should meet as soon as possible to address critical issues. Last year, when the severity of this recession was not anticipated, the Government opted for a graduated fiscal response and Brian Lenihan ruled out further tax increases in 2009. Now that a full-blown crisis is upon us, that policy should change to reflect a transformed situation.
Tánaiste Mary Coughlan sought to reassure the public yesterday that the public finances are under control. There is a thin line between competency and complacency. And she crossed it. People do not want, and certainly do not deserve, political bromides at this time. They want the truth. They want to be told what it will cost them in levies and taxes to have a realistic economic recovery plan, not a vague framework document that the European Commission criticised. Most of all, they want leadership and a collective sense of purpose. These issues should not have to wait until the local and European elections. This is no time for conventional political strategy.