Tánaiste Brian Cowen, on his elevation to the position of taoiseach, must put aside the “soft-option politics, and procrastination synonymous with the Ahern era” and set out new priorities, Fine Gael leader Enda Kenny said today.
In an address to a meeting of the Konrad Adenauer Foundation in London, Mr Kenny called for “action, not rhetoric” on the economy.
"Though economists differ about the probability of a recession in Ireland, there is no doubt that we are now facing serious headwinds – the halving of house-building, the loss of consumer confidence as house prices tumble and unemployment soars, the difficulties faced by exporters from the strong euro and high domestic inflation, and the need to bring the public finances back under control," he said.
The Fine Gael leader said Mr Cowen needed to stick to 2008 public spending targets, to set out a new programme for government and to negotiate a “realistic and fair” national pay agreement, amongst other things.
“In adversity, there is always opportunity. After the years of soft option politics, indecisiveness and procrastination synonymous with the Ahern era, Minister Cowen’s elevation offers the possibility of a change in style and direction.
“He is well regarded as a strong parliamentary performer. In recent days, he has been making the right noises about the need for a new approach and an era of reform,” he said.
“But it is action, not rhetoric, that will restore the confidence of families and investors in the Irish economy.
“Mr Cowen must now move beyond his bland banalities about reform to setting out implementing a credible strategy to forestall a longer-term economic slump. This will require some imagination, political courage, new priorities and new initiatives across a range of areas.”
Mr Kenny said the credibility of Ireland's fiscal policy requires Mr Cowen to "set out in
clear terms how he intends to deliver his spending targets for 2008 without
compromising front-line services or vital infrastructure programmes".
He also called for a new programme for government, claiming Fianna Fáil's election promises, as set out in the existing one, are no longer affordable.
"The Department of Finance now expects revenue for the next three years will be
cumulatively €20 billion short of what Fianna Fáil had based its election manifesto on. The Government, and the country, is now adrift without a credible plan.
"Mr Cowen and his coalition partners need to negotiate a new, affordable, medium-term Programme for Government in line with the new economic realities," he said.
On pay, Mr Kenny said a moderate pay deal was needed to restore competitiveness and get the public finances back on a sustainable footing.
"Chasing imported inflation with even higher wage increases would just be repeating the mistakes of the 1970s and would again be paid for dearly in terms of lost jobs and higher taxes.
"But we also need a fair sharing of the pain. Mr Cowen could regain the high moral ground and send the right signals by cancelling inflation-busting and unjustified pay increases that he and his fellow Ministers accepted last year."