The Irish Times/PA Consulting Group Management AwardBusiness leaders at management award ceremony told they must remain competitive in an uncertain environment, writes Edward Power
Global economic recovery may be at least two years away, the Taoiseach told business leaders last night.
With the jobless rate in the United States predicted to breach 8 per cent by the end of this year, it was apparent that the global downturn would continue over the medium term, Mr Ahern said.
Speaking at the Irish Times/ PA Consulting Group Management Award, Mr Ahern reiterated the Government's determination to keep a tight rein on spending, warning that borrowing to fund infrastructure development could saddle the State with a potentially unmanageable deficit.
The award was won by United Drug, the pharmaceuticals wholesale and distribution group.
Although the Taoiseach's overall tone was cautious, Mr Ahern expressed optimism for the next national pay deal, saying it would help copperfasten competitiveness.
He reaffirmed his commitment to upgrading State infrastructure, citing a €1.2 billion outlay on road projects this year.
But Mr Ahern insisted the Government would not follow the lead of those European states that are in the process of running up heavy deficit to meet short-term expenditure.
While others substantially increased borrowing, the Republic's debt-to-GDP ratio fell last year and was set to remain stable in 2003, the Taoiseach said.
"As the uncertainty continues, all of us who are managers face tough decisions," he added.
"It is important to remain competitive and not get tied up in deficits."
Accepting the award, Mr Martin Rafferty, chairman of United Drug, paid tribute to the Mayo pharmacists who established the group in the late 1940s and to its employees, whose dedication had proved vital to the company's continued growth in Ireland in Britain.
Ms Maeve Donovan, managing director of The Irish Times, said that, in the current environment of economic uncertainty - one that had been exacerbated by the looming threat of war in the Gulf - good management practice is more important than ever.
Mr Michael Maguire, country head of PA Consulting Group, said the successes of recent years had prompted a profound shift in the dynamics underpinning the economy.
As a result, the boundaries between public and private sectors had become increasingly blurred and there was now a "compelling argument" for forging closer links between the two.
"Related to this is the idea that some further consideration could be given to those non-policy functions currently undertaken within the public sector, and seeing if the private sector could make a useful contribution here," said Mr Maguire.
"As experience has shown elsewhere, the private sector can have a substantial role to play in the delivery of public services," he said.
First held in 1977, the award gives public recognition to excellent management practice.
The competition is open to organisations throughout Ireland, with the objective of rewarding outstanding performers in industry, commerce and public administration.
The award is made to an enterprise that has generated outstanding results through a strategic, driven and innovative management style.
Previous winners include Musgraves grocery group and DCC, the value-added marketing and distribution firm.
The judging panel for this year's event included: Mr David Dilger, chief executive of Greencore; Mr Jim O'Hara, general manager of Intel Ireland; Sir David Fell, chairman of the Northern and National Irish Banks and former head of the NI civil service; and Mr Eddie Sullivan, secretary general of public service management and development at the Department of Finance.
