I am delighted to have been asked by Paul Sweeney and New Island Books to launch this new book on the reasons behind Ireland’s economic success and the prospects for the future.
I was very glad to have the opportunity to contribute to the book myself, along with esteemed colleagues in the Social Partnership process and respected commentators.
Ireland’s Economic Success: Reasons and Prospects is, I believe, a very timely publication. It encourages us to reflect on effective policies which were adopted to address past challenges. And it highlights clearly the opportunities that were seized, resulting in an unprecedented period of success for the Irish economy.
I feel it is particularly opportune to identify, analyse and build upon the key elements of our success, as we turn to face a challenging economic outlook.
Ireland ’s Economic Success – Contributing Factors
In contributing to this publication, I highlighted a number of factors which I feel have been instrumental to Ireland’s economic success. This evening, I will just touch on three:
§ Social Partnership;
§ Public Service Modernisation; and
§ EU Membership.
It will come as no surprise to members of this audience that the first success factor I choose to highlight is Social Partnership. Those of us who remember the bleak times in the mid-1980’s remain keenly aware that Social Partnership has played its part in transforming this country. Not only has it helped to move the economy up several gears, it has completely transformed the way we handle industrial relations and pay determination. In providing a stable industrial relations climate, we have been able to minimise risks and offer greater predictability to our indigenous business sector and to inward investors.
In addition, through Social Partnership, we have fostered a commitment to the wellbeing of our community and the development of our people. We pursue economic development and prosperity in order that the people of Ireland can realise their social and cultural goals. We have a distinctively Irish approach to securing the credibility of our strategic approach, and our capacity to mobilise to achieve our goals.
Secondly, Public Service Modernisation has played no small part in Ireland’s economic success. The reform of the Public Service that has been in progress over the last decade continues to make a significant contribution to national development and to the transformation of our economy and society. It is fashionable to decry the performance of the public service. I am very clear that there are major shortcomings and some issues were badly handled. But there have been many success stories, too, where good management, focused leadership and agile delivery has helped to position us for growth.
Thirdly, I feel it is important to highlight our membership of the European Union as a critical success factor. Experience has shown us that our economic interests are best served by being part of a dynamic, competitive European economy.
There can be no denying that EU membership has been crucial to the development of our economy - the figures speak for themselves! In 1973, our income was barely 60% of the EU average. Now we are well above that average. In 1973, employment stood at a little over one million. Now, we have more than two million people in work. In 1973, foreign direct investment amounted to €16 million. Today, it is a huge multiple of this.
Looking ahead – Where our energies must be channelled
While clearly identifying the key factors contributing to Ireland’s economic success story, Paul’s book also encourages us to focus attention on our future prospects.
Looking ahead, I feel it is important to channel our energies into a number of critical areas, with a view to ensuring the continued prosperity of the country.
Firstly, we need to address the immediate challenge of handling the transition to more sustainable levels of growth. One of the things we must do is to continue to invest prudently - but confidently - in strategic infrastructure and productive assets that will take us into the next phase of our development. This means seeing through the key elements of the National Development Plan, Transport 21 and other Government strategies - in ways that deliver projects on time and on budget. We must also be relentless in pursuing value for money and high standards of service delivery.
Secondly, we need to turn our attentions to writing the next chapter of social partnership. In doing so, we will depend on the excellent, visionary leadership and commitment of many of those present here this evening.
Pay negotiations will commence shortly. We have learned from hard experience that these talks can be onerous in terms of time and effort. But I think you will agree that the benefits, nationally, of reaching an agreement, in terms of certainty and industrial peace, far outweigh the burden placed on those who are involved.
Thirdly, I think it is very clear that the public service is facing significant challenges.
We need, therefore, to ensure that our public services are up to the mark and are delivering quality, efficient and effective services to the Irish people. Recognising this imperative, I initiated a major systems-level review of the Public Service, which is currently being finalised by the OECD. This will benchmark our Public Service against other OECD countries and it will contain recommendations as to the direction and pace of further modernisation and reform.
Lastly, I am convinced that our future prosperity is best served by membership of a European Union which functions even more efficiently and effectively – this is the Union envisaged by the Reform Treaty.
I am convinced that the Irish people want full Irish engagement in a Europe that will be improved and reinvigorated by the Reform Treaty, that will continue to support social and economic development and job creation, and that will play a lead role in rising to the global challenges of the 21st century.
Concluding remarks
In closing, I would like to thank Paul for the time and effort he has so clearly put into his book, Ireland’s Economic Success: Reasons and Prospects. It is essential reading, not least because it brings together so coherently the different perspectives of those who were instrumental in shaping Ireland’s economic development. What I will take away with me, having read the book, is this: although we have differing perspectives on a number of issues, we all have a deep sense of a shared, common good. We have a particular concern for those who are disadvantaged and are in need of support to reach their full potential, economic and social. And we all are committed to ensuring that Social Partnership continues to serve the needs of the country and our people.
For Paul’s sake, it’s great to see such a good turn out from the Social Partnership community. I fear we will be seeing a lot more of each other in the coming weeks!
Thank you, ladies and gentlemen, for your attention.
ENDS