Address by Minister Pat Carey to North Dublin Chamber of Commerce Christmas Lunch
A chairde
I would like to thank Tony for his words earlier and Valerio for his informed and valuable contribution.
I would also like to thank Tony and all those at the North Dublin Chamber for inviting me here this lunchtime. I have attended this lunch on a number of occasions throughout the years and I am truly privileged to be asked to address this year’s event.
I think it is fair to say that you meet this Christmas at a time of unprecedented challenges. In each of our professions and in each individual business the challenges for most have never been greater.
Businesses throughout the North Dublin area and nationwide have been under severe and unprecedented pressure. Unfortunately some have not been able to continue but most are weathering the economic storm and will come out stronger when that storm passes.
The sharp drop in economic activity in the last year or so is all the more pronounced due to the strong decade of growth which we had enjoyed here in Dublin. Although times are tough, we must not forget the great strides that have been made.
Challenge can be overcome
But I would like to be frank with you here today.
Yes, like your businesses, this country faces unprecedented challenges. They are serious and they are severe.
Yes, we are all faced with tough and unpalatable decisions.
But, the key fact to remember, is that by facing those challenges head on and by taking the tough decisions, this country can emerge from this recession in a stronger and more sustainable position.
Following Valerio’s account, I don’t think you need to hear my explanation of what happened over the last 18 months, why it happened or who is to blame.
As you will all know, the reasons are multiple and for our part the Government acknowledge that with hindsight we would have acted differently.
But the process of apportioning blame will not solve the problems we all face.
To get our economy back on track, we must face up to the scale of the challenge.
Wishing the problems and our growing deficit would go away will not work. We must not try to imitate the borrowing solutions of the past. This will merely serve to postpone and prolong the pain to the next generation. As a nation we must face up to the reality of our situation and address it head on.
I can assure you as a practising politician this is neither popular nor electorally profitable!
The harsh fact is that we are living way beyond our means.
The reality is that for every €30 of income, we are spending over €50. This is unsustainable and it must be addressed. And addressed now.
For the last couple of months, the Cabinet has been looking at the fairest way to achieve the cuts that are needed. I know that the Budget unveiled by my colleague Brian Lenihan will seek to achieve his fiscal goals in the most equitable way possible.
I can also assure you that the discussions on the Budget are informed and sensitive to the needs of business.
We are aware that it is our obligation to seek to protect the resilient Irish business community while continuing to foster the entrepreneurial spirit. These are the factors which have been so central to our success over the last two decades.
We must not throw the baby out with the bathwater.
Business is key to Recovery
The Taoiseach, the Tánaiste and the entire Cabinet know that this recession will not be overcome without recovery within our business community.
As policymakers, we can only create the right climate for the recovery to take place. It is your businesses which are key to the recovery of the Irish economy.
I think it is fair to say that the main difficulty that most enterprises now face is the lack of credit. The theme of today’s lunch 'Financing Business after the Credit Crunch' is an indication of the problems that many businesses face.
For our part, the Government has put our NAMA proposal into law to get our banks working again. We believe that by removing the uncertainty about the losses facing the banks on their land, and development loans, NAMA will make it easier for the banks to get funds on international markets. When this is achieved the providers of funds will be more willing to lend to "clean" Irish banks. In turn these funds can then be lent to viable businesses and households.
I share the Minister for Finance’s conviction that there can be no delay in this happening.
The importance of financing business, and getting credit flowing to businesses, as they begin to position for recovery cannot be underestimated.
Government understands this need and has made it a priority.
Another initiative to get finance flowing is our establishment of a Credit Supply Clearing Group. Its’ purpose is to identify patterns of events where the flow of credit to viable businesses appears to be blocked, and to identify credit supply solutions relating to these patterns. The Tánaiste is overseeing this process and I am told is making progress to getting credit flowing.
When - and not if - we get credit flowing again, I believe that the business community can take a leadership role in Ireland’s return to growth.
Working with Government, business throughout North Dublin and beyond, will form the bedrock for our recovery.
Supporting Enterprise
Along with proactive measures to get credit flowing for business, the Government recognises the need to protect and support enterprises.
Job retention and job creation will always be the ultimate goal of Government employment policies. Despite the economic tsunami, the numbers on our dole queues have thankfully stabilized recently.
To ensure that this remains the case we have put in place supports such as the €250 million Employment Subsidy Scheme and the €100 million Enterprise Stabilisation Fund.
These schemes are proof that we cannot – and will not – ignore the very real difficulties that businesses face.
We all know that the retention of jobs is a far better spend of exchequer monies than having to allocate the same money in a social welfare payment to someone who has been laid off.
We also know that if business can retain a strong, trained and dedicated workforce, they will be better prepared for the inevitable upturn in the global and the Irish economy.
Bright Future if we act together
However, let us be under no illusion. The next year or two will be difficult for us all. The Budget on Wednesday week is just another stepping stone on our path to recovery.
The decisions which must be made will cause difficulty for many sectors in our society. But they are decisions which will be made in the best interests of our shared future.
They are decisions which are based on the need to return the Irish economy to growth. And return there without delay.
Now is the time for calm heads and strong leadership.
Working with organisations such as the North Dublin Chamber of Commerce and Chambers nationwide, we can - and we will - see Ireland flourish again.
Taking decisive action now will mean that we can all look forward to a brighter future for your businesses and for this country.
Through partnership, energy and a sustained joint effort, this country will come through this recession. I look forward to working with the North Dublin Chamber of Commerce to ensure that this happens - sooner rather than later.
Go raibh míle maith agaibh.