ON MARCH 1st, 2009, after 10 years running major international festivals, I began a seven-month sabbatical by returning from Australia, a country comparatively untouched by the global credit crisis, to Ireland, a country devastated by it. Since then, I have been a bystander as friends and colleagues who lead festivals and events all over the world have come to terms with the challenges changed circumstances have thrown up, writes FERGUS LINEHAN

For many, this has meant hard times and uncomfortable decisions. But, outside of Ireland, even allowing for its severity, it is still seen as “just” a recession. Within a number of months the focus of public discussion has shifted to the real question – how do we get out of this? Given the depth of Ireland’s economic problems and the division and anger caused by the behaviour of some of our leaders, it is not surprising it has taken us a bit longer to get to that point.

As the media focuses on Government attempts to radically reduce public spending, those of us who rely on public funding must guard against exhausting our energies in our attempts to justify our slice of a rapidly shrinking pie. It is essential this debate be had, but it is equally important the communities which we serve are aware our main focus is on ways in which we can answer their needs during these difficult times.

This week, many of Ireland’s major festivals will gather in Ballinasloe at the Associations of Irish Festival Events annual conference to consider their role in Ireland’s economic recovery. This is particularly pertinent for festivals as the ownership of the majority of these events is firmly grounded in the communities in which they operate. Most were founded in a spirit of optimism, often in times of financial hardship, to improve and promote towns and cities throughout the country. Festivals such as the Galway Arts Festival and Wexford Festival Opera were launched with almost no resources in very stormy economic conditions. Their success has been built on the backs of collective passion, enthusiasm and hard work (much of it voluntary).

They are, in effect, precious local assets, which can and should shape themselves according to the needs of their localities.

Given their high profile, light administrative structures and grassroots origins, festivals are in a unique position to respond to the difficulties we are facing. At a local level, they can provide ways for people to stay socially and professionally connected at a time when those bonds may be weakening – over 2,500 people applied for 1,400 voluntary positions at the recent Volvo Ocean Race in Galway.

Commercially they can attract visitors – from Ireland and overseas – to fill our hotels, restaurants and shops. Edinburgh has recently reported that festival attendance and room occupancy actually rose this year. At a global level they can promote the perception of Ireland as a contemporary, forward-looking, and sophisticated nation that is open for business. Mark Fisher in the Guardianrecently wrote of his visit to the Ulster Bank Dublin Theatre Festival: "Where in the world do you find the most critically engaged theatre community? St Petersburg? New York? Berlin? For my money, it's almost certainly Dublin".

Of course, many of our events already perform these roles with great success, but boards and committees of all Irish festivals are currently looking at new ways to passionately prioritise these areas.

In some cases this may mean redirecting energy and resources towards those areas that can deliver rapid social and economic solutions. This is not to denigrate or dismiss activities that deliver less immediate or “measurable” benefits, rather it is to acknowledge that in a time of crisis, we need to keep our eye on the altered landscape in which we operate and in particular any shifts in the needs and expectations of those whom we serve.

In Galway, Wexford, Kilkenny, Dublin and Carlow and throughout the country people are in the fight of their lives. They are fighting to keep their businesses open, to keep their jobs viable, to keep their skills sharp and to keep their spirits up. As leaders of the festivals and events they have supported all their lives, it is our job to do all we can to get right behind them.

Fergus Linehan was artistic director of the Dublin Theatre Festival (2000-2004) and the Sydney Festival (2006-2009). He is curator of this year’s Aoife conference, which takes place in Ballinsaloe, November 5-6, 2009