Report on growth for EU commission redrafted to take account of downturn

A GOVERNMENT progress report on jobs and growth submitted to the European Commission for assessment last month was redrafted …

A GOVERNMENT progress report on jobs and growth submitted to the European Commission for assessment last month was redrafted to take account of the worsening economic situation and budget cuts.

However, Labour TD Joe Costello said the final draft of the National Reform Programme (NRP) 2008-10 was not hugely different from the document criticised as being "seriously dated" at a recent Oireachtas committee.

The latest version of the report, drawn up under the Lisbon agenda, contained a commentary from Taoiseach Brian Cowen telling the commission about "serious economic and fiscal challenges for the Irish Government" which were "already being reflected in increased unemployment".

There were significant changes to the sections on vacancies in the labour market and English language training for migrants, which were written about positively in the previous draft. There was also a new section on the Government's bank guarantee scheme.

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Members of the joint committee on European affairs had complained that the draft version did not reflect the post-budget reality at a meeting at the end of October.

Mr Costello described the Taoiseach's contribution to the final draft as "fairly timid".

He added: "There is nothing to give an indication to European colleagues that Ireland is in recession and economic crisis at the present time."

The commission will give its view on Ireland's progress on December 16th when it publishes its annual report on the Lisbon agenda. The report will contain a chapter on Ireland outlining the commission's opinion of the State's implementation of the NRP. The commission received Ireland's report in early November, having already granted the authors an extension to complete their work.

A Government spokeswoman said the document was still being finalised when it was discussed at the Oireachtas committee on October 28th.

"It was acknowledged that this was very much a work-in-progress at that time, requiring further work to reflect a fast-changing economic environment and the measures set out in budget 2009," she said.

"The final version as submitted to the commission fully reflects these adjustments, including the key features of the macro- economic outlook underpinning Budget 2009," she said.

"The NRP also makes very clear that Government policies will continue to evolve in response to the serious challenges which lie ahead."

The latest version contained a foreword from the Taoiseach, noting "the economic situation has changed rapidly during the course of 2008, with a domestic slowdown due to declining construction . . . compounded by the severe international financial crisis".

Mr Cowen said this created economic and fiscal challenges for the Government which were already being reflected in increased unemployment.

Mary Minihan

Mary Minihan

Mary Minihan is Features Editor of The Irish Times