IRELAND HAS the capacity to meet all its liabilities by generating income through the sale of goods and services, former taoiseach John Bruton has said.

The chairman of IFSC Ireland said Irish exports were buoyant, rising faster than in most European countries. “Irish exports fell much less in the recent downturn in global markets than did the exports of most European countries.”

He said this general trend in exports showed that Ireland was invested in economic sectors for which there was consistent demand, whereas other European countries were heavily involved in sectors, such as car production, where demand was much more volatile.

He said those who say that the chasm could not now be bridged between spending and revenue should bear in mind that the increase in spending, and the gap between it and revenue which it has created, was quite recent.

“Whatever about subordinated bonds of formerly private banks, there is no need for, nor wisdom in, calls for renegotiating the liabilities that our democratically elected sovereign Government freely undertook.”

The Chinese government wanted to divert saving away from property, he said, adding: “This is an opportunity for Ireland’s financial services sector to devise ways of helping China spread its investment globally in ways that minimise risk and maximise returns.”

He said Ireland had to learn from mistakes. “These mistakes were made because our system of government failed; our style of government lacked responsibility and true accountability.”