FRINGE MEETING:IMPASSIONED EXCHANGES marked a fringe meeting on the economy at the Fianna Fáil ardfheis with members of the Cabinet challenged to show leadership.
An outgoing member of the party’s national executive, Dublin solicitor Graham Hanlon, called for “leadership and vision” and said opinion polls showed the electorate felt its trust had been misplaced.
Speaking from the floor to a platform that included Minister for Finance Brian Lenihan, Tánaiste Mary Coughlan and Minister for Foreign Affairs Micheál Martin, Mr Hanlon said: “We all know it’s global, what people are crying out for now is decisive leadership . . . Give us pain now, not death by a thousand cuts.”
Criticising the practice of commissioning reports he said: “We shouldn’t have to wait for so many reports.” Instead of a report, action should be taken on the “outlandish salaries” of senior bankers which he described as “absolutely revolting”.
He added: “Are these people living in the real world?” If the Government emulated US president Barack Obama, who imposed a limit of $500,000 on the executive pay at bailed-out financial institutions, “the people will support you 110 per cent”.
“We want this Government to make the right decisions,” he said. “I know the seriousness of the situation . . . I let three of my staff go. We need leadership and we need innovation.”
Continuing he said: “We created an economy the envy of the world and we can do it again.”
The people of Ireland voted for Fianna Fáil in the 2007 general election as the best party to get them through the downturn. “What you are reading in opinion polls is that they feel their trust was misplaced,” Mr Hanlon said.
Responding, Mr Lenihan said, “You want to get your facts right.” Referring to Mr Obama’s cap on salaries, the Minister said: “He hasn’t been able to implement it.”
“Words are cheap,” he said, “actions are harder.” The report commissioned by the Government on bankers’ salaries would be delivered this week and “immediate decisions” would follow.
On the issue of leadership, he said: “The Government isn’t afraid to give leadership. People want tough decisions but when the tough decisions are made, the people don’t like it.”
On the unfavourable poll ratings he said: “I will lead and I will not listen to opinion polls.” The Government could not “just join the throng of populist outrage”.
Commenting on negative reaction in Ireland to the Government’s decisions he said: “The world is asking: ‘Will these people take the pain?’”
Referring to the early Budget he had brought in last October he said: “I felt a very lonely man for 10 days after that Budget.”
In an earlier contribution, the Minister said there was a tendency to look on “bad banks” as if they were “a local authority skip” where impaired loans could be dumped. “It’s not as simple as that.” Commenting on public attitudes to the banks, he said that when he was recapitalising the banks an official in his department said to him: “You will get no thanks for this.”
Claiming that RTÉ coverage of possible International Monetary Fund intervention in Ireland had resulted in one particular bank losing €3 billion, he said he had heard no “act of contrition” to date.
Chairman of Aer Arann Pádraig Ó Ceidigh described how he had to let 70 staff go and how difficult it was to tell a 40-year-old man he no longer had a job: “He looks down at the floor and looks up at you and starts crying.” Recalling the dynamic response in Galway to the closure of the Digital computer plant, he said: “It’s not the kick in the arse that’s the most important thing, it’s what you do after you get the kick in the arse.”
Economist Dr Alan Ahearne said Sweden had devalued its currency as an “anaesthetic” to ease the pain of austerity measures but this was not an option for Ireland as a member of the euro zone, so the only alternative was “a downward adjustment in wages”.
