SPEECH REACTION:TAOISEACH BRIAN Cowen's suggestion that the standard of living would fall by 10-12 per cent in the coming years was based on information contained in a framework document presented to the social partners.
The economic division of the Department of Finance prepared cumulative projections that predicted decreases in standard of living between 2008 and 2010.
This was presented to the social partners during the negotiations that broke down without resolution in the early hours of Tuesday.
Sources in the department said the projections stated there would be a reduction of up to 10 per cent in national income between 2008 and 2012. The additional 2 per cent could have been the result of factoring in possible inflation adjustments, the sources said.
In an unscripted speech to the Dublin Chamber of Commerce on Thursday evening, the Taoiseach also accepted that Ireland was in recession but appealed to people not to give in to defeatism.
Fine Gael leader Enda Kenny said yesterday he was glad the “penny seems to have finally dropped” with the Taoiseach on the depth of the problem.
Speaking in Limerick, Mr Kenny said: “I’m glad that the penny does seem to have dropped with Taoiseach Cowen and at long last there’s a sense of commitment or some demonstration of action being taken.
“I’ve heard that speech before and I’m far more concerned that government in its capacity as government would actually start to govern and make decisions that are actually going to lead to job protection and job creation.”
Labour leader Eamon Gilmore also welcomed the speech, saying much of it echoed what he and his party had been calling for over a long period.
“I welcome, in particular, the statement by the Taoisech that ‘jobs, jobs, jobs’ had to be the priority in the coming years. I have been making this point since the significant upward trend in unemployment became evident at the beginning of 2008,” he said.
Mr Gilmore added that as late as last Wednesday morning, Mr Cowen had publicly disagreed with him on the jobs issue and had insisted that stabilising the public finances had to be the priority.
Jack O’Connor, the general president of Siptu, however, was dismissive of the “woolly words” used by the Taoiseach in his speech.
“We noted his desire to maintain the social partnership process, which is okay as far as it goes. However, despite all the woolly words about ‘working together’, the fact of the matter is that the only people he has inflicted pain upon in last Tuesday’s announcement are those who have to work for others for a living, while not a cent is required of the wealthy.”
In his 17-minute speech, Mr Cowen said Ireland could begin to grow again if we “stick together as a community”.
Commenting on Thursday’s speech,Dublin Chamber president and Clerys chief executive PJ Timmins said the reaction was as emotional as it was unexpected.
“I have seen absolute staunch supporters of Opposition parties saying this is what we need and need desperately. There was a great sense of relief,” he said
Brody Sweeney, the founder of O’Brien’s Irish Sandwich Bars who ran as a Fine Gael candidate at the last general election, said Mr Cowen had impressed a business audience which had been hitherto unimpressed by his handling of the recession.
“He called it like it was which is a rare enough thing in a politician. He thought it was going to get worse before it got better and he appealed to our highest values.”
EPS Consulting managing director Peter Brennan said: “A person beside me said, ‘where has this speech been for the last six months?’ It was of such importance,” he said.
Hewlett Packard managing director Martin Murphy described it as “the best speech I have ever heard from a political leader in my lifetime. People walked out feeling that here’s a man who is on top of the job, who has his finger on the pulse, he is bringing people with him,” he said.
Former taoiseach Bertie Ahern said yesterday that Mr Cowen was “doing a great job” and had “had a good week”. Speaking after he opened a new community centre in the East Wall area of Dublin, Mr Ahern said the next 18 months would be “tough for us all... There’s no way out of this other than to face up to the reality and take charge of it. I think he’s [Mr Cowen] doing that.”