Good evening ladies and gentlemen.
Today marked the 100
th day for the new Government. It has been a remarkable journey so far. From visiting Queens and Presidents to departing Taoisigh, it has been an eventful time. Today’s juncture offers us an opportunity to reflect on the challenges facing our country, the actions taken in response, and on our vision for the future.
Nobody in this room needs to be reminded of the challenges that business faced in the past few years. Cost hikes, lost skills, falling market share, and most seriously, our collective international reputation muddied.
Similarly, the public service continues to face the need to do more with less. To change itself utterly in the midst of the greatest economic challenge faced by the State.
But if there is one thing I have learned during these first 100 days in office, from all the people I’ve engaged with, is that I am absolutely convinced we will emerge from this crisis, as a country, stronger than ever. The passion and commitment from leaders, both public and private, to restore this country is unshakeable.
But it’s not going to be easy. Huge changes to the way we do business will be necessary. Change will always be difficult for some but there isn’t a moment to spare.
Big decisions lie ahead for this Government and I want to assure everyone in this audience that this new Government will be doing things very differently. We are actively working towards the aim of undoing much of the damage caused by years of economic mismanagement and Governmental drift.
Today in only day 100 but already we have achieved much in three main areas of concern: banking, jobs and reform.
Within weeks of coming to office the Government devised a whole new strategy for the future of the Irish banking system designed to leave a smaller and more effective banking system for the needs of the Irish economy.
This has been welcomed internationally after months of indecision and false dawns on the future of Irish banks.
The Government also launched its ambitious jobs initiative designed to get people back to work and help restore confidence back into the economy. It involved major decisions on lowering VAT rates for labour intensive sectors, internship programmes, cuttings employers PRSI, restoring the minimum wage, common visas with the UK, and on fast tracking building projects on local roads and schools around the country. We have also decided upon and are implementing wide spread political and public service reform.
More initiatives are on the way as we develop a Microfinance Fund and Partial Loan Guarantee Scheme for the micro enterprise sector to over come market failure in this particular area of enterprise financing.
Similarly, the banking system must provide substantial new lending into the economy. The business plans submitted by the pillar banks provide for over €30 billion of total new lending over the next three years across their core business areas. The Financial Authorities will be rigorously monitoring the banks’ activities to ensure that credit is available.
Many of you will have heard me say that it is my goal to make Ireland the best small country in the world in which to do business by 2016. This is not empty rhetoric but a guide for my Cabinet to implement the types of changes in the Irish economy to make us competitive again.
For instance the Government is fast tracking plans to make the labour market more flexible while addressing high costs in some of the sheltered sectors that have largely avoided reducing their costs along with the rest of the economy.
But as I said to business leaders in Washington, New York and London, Ireland is already a fantastic place to do business. While the World Bank currently ranks Ireland as the 9
th best place in the world to do business, we will not rest until we’re number one.
Our rate of corporate tax remains sacrosanct. It will not be changed. It will not be conceded for any changes to international agreements. Corporation tax will remain a national competence. It is, and will continue to be, a corner stone of Irish industrial policy.
We continue to have a young educated and motivated work force. Business costs have been falling steadily while exports have been soaring. Irish-based companies achieved export sales in 2010 in excess of €162 billion, recovering in the region of 70% of the losses made in 2009.
But we cannot afford to rest on our own laurels. We must always strive to be more ambitious, to do even better. It will be the challenge of everyone, include everyone here, to ensure Ireland’s good reputation is restored. The business sector has an equally important responsibility to improving the business environment.
A sea-change in corporate governance standards is essential to restore international confidence in Ireland. The events at Anglo Irish Bank, the slew of cross-directorships in the financial and construction sectors and the failure of audit committees and external auditors to identify systemic failures have had catastrophic economic consequences for everyone.
This is why the new Government will be improving corporate governance standards, to ensure this never happens again. Similarly, sheltered sectors will no longer be allowed to undermine our competitiveness.
Minister Richard Bruton is currently in the process of overhauling company law and enforcement and the Minster for Finance will soon publish new legislation to give more supervisory and enforcement powers to the Central Bank and the Financial Regulator.
There is a vision for Ireland again.
To build a country where good jobs are the reward for an open, honest and flexible economy…
That can care for its people…
That can believe in itself again…
That can cast off the need for external assistance.
We will get there.
It is a long road but we will get there.
Step by step. Decision by decision.
We will bring this country back from the brink. We will restore the good name of Ireland among the nations of the world.
This is my mission. This is the Government’s mission. This is our mission.
There is a vision for Ireland again.
Thank you all.
ENDS