CAMPAIGN SPEECH:TAOISEACH BRIAN Cowen last night predicted that Ireland's economy could return to "rapid growth" as early as next year as a result of the Government's financial policies.
The Taoiseach launched a strong attack on Fine Gael and Labour, accusing both parties of being obsessed with the “dead-end politics of the past”, and describing their economic policies as “flawed” and “fatal”.
He claimed that the sustained criticisms of both parties in themselves had damaged the reputation of Ireland.
In a reference to Fine Gael leader Enda Kenny and Labour leader Eamon Gilmore, he said: “We do not need national leaders who don’t seem to understand that when you recklessly attack our economic condition, those attacks are not only heard by voters, they are also heard by investors in boardrooms abroad.
“Loose talk costs jobs. So that is the choice: stability, progress, and co-operation from Fianna Fáil; or instability, retreat, and division from the Opposition.”
The Taoiseach argued that “tough decisions” taken by the Coalition were the right decisions, notwithstanding attacks from the “bad news brigade” of the Opposition and economic media commentators.
“I want to explain to you that we are making real progress, and that we have a way out that is working,” he told the meeting.
“The ESRI and other commentators are now predicting that the decisions taken by the Government, allied with the flexibility of our economy and our people in reacting to the crisis, mean that we are positioned to return to growth, even rapid growth, as the world economy turns, as early as next year.”
In the course of the speech, Mr Cowen also defended the establishment of the National Asset Management Agency (Nama) and denied trenchantly that the agency had been created to bail out either developers or bankers.
His defence of the Government, which ran to more than 4,000 words, was made at a Fianna Fáil rally in Slane, Co Meath, last night. He said the economic crisis was not unique to Ireland, and suggested that the State was not faring any worse than most other developed countries.
Accusing Fine Gael and Labour of indulging in “empty politics”, he criticised both parties for “pointing the finger, saying that we should have seen this downturn coming.” He went on to claim that neither party had predicted the scale and range of the worst global recession in decades.
“Their hindsight may be clear now, but they were not so sharpeyed when the crisis was only around the corner.”
He said that alone of the three parties, Fianna Fáil was focused on finding a solution.
“The Opposition want us to get bogged down in the politics of blame. They are obsessed with the who, the how and the why of this recession. Their obsession with the past is dead-end politics that does not create one job.”
He said the Government had taken bold moves to stabilise the public finances, sort out the banking sector, protect jobs and help those who were out of work. In contrast, the Opposition wanted to impose “risky and divergent policies” that could wreak havoc on Ireland’s economy.
On Nama, Mr Cowen said it was the best vehicle to get credit moving and “clean up the financial mess for good”.
“Fine Gael and Labour oppose this plan. And while they try to mislead people into believing that Nama is some kind of bailout for banks and developers, the real truth is that some banks and developers are the ones, along with other powerful interests, who are trying to stop Nama. The only people we are trying to protect is the Irish taxpayer and our economic future.”
He said Labour’s policy of nationalising the Irish banking system would send out an inaccurate message that the banking system was non-viable.
Mr Cowen said the Fine Gael solution relied “heavily on allowing the financial system to default on certain bonds or loans. It means walking away from the bank debts and allowing them to default on the bonds, which would have a very negative effect on the reputation of Ireland.”
Mr Cowen said the policies of the Government had resulted in savings of €4.3 billion in 2009, or 3 per cent of GNP, a measure not matched elsewhere in the EU.
He claimed the policies of both Opposition parties were divergent and unsustainable, with Fine Gael wanting to impose more cuts and Labour wanting to spend more.
“Labour offers nothing but hot air and prove what everyone knows – Labour only shows up to the party in good times and have nothing to offer when times are difficult.”