Cowen denies tension with Lenihan on economy

Taoiseach Brian Cowen has dismissed suggestions that there are tensions between him and Minister for Finance Brian Lenihan over…

Taoiseach Brian Cowen has dismissed suggestions that there are tensions between him and Minister for Finance Brian Lenihan over the speed and nature of the Government's response to the sharp economic downturn.

Mr Cowen said that he had read reports about differences between him and Mr Lenihan but they had no basis in fact.

"There are no tensions between us at all. What we are talking about is the Cabinet making decisions based on proposals that will come from the partners in the normal way," he said.

On the first day of his official visit to Japan, Mr Cowen told reporters that he and Mr Lenihan were fully in agreement on what was required and the urgency of the situation.

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"There has been a deterioration in our public finances in the last three months. That's been the same in other advanced countries. We have to react to that. We are doing that on the basis of the end-of-year exchequer returns.

"We are in the process this month of discussing with all of the social partners how we proceed and Government is making it clear that we have to make decisions in the final analysis. That's where it's at. There is not a difference between us."

Mr Cowen defended the social partnership process describing it as a problem-solving process and not a problem-avoiding process.

The Government would not shy away from taking hard decisions, he said, in the event of the current negotiations ending without agreement.

"It's not possible to avoid tough decisions in the circumstances and conditions we find ourselves in. [It is] a big challenge to everybody, and to the country. I want everybody to be part of the solution."

He added that the Government does not "contract out" its own responsibilities.

However, pressure on the Government grew today after nurses said they would seek advice on the legality of any public sector pay cuts. And speaking in Limerick today, Fine Gael leader Enda Kenny said the Government had not provided any clarity on what their plans were to turn around the economy.

Outlining the reasons behind the visit, Mr Cowen said that Japan was the second largest economy in the world and there was a need for Ireland to go abroad to improve market share, particularly in harder times.

"We have a big emphasis [during this trip] on trying to coordinate research and development programmes," he said.

Mr Cowen visited two business seminars that are being held as part of the Irish trade mission to Japan, involving over 70 countries. He told delegates at a seminar on functional foods that the concept originated in Japan and that development of this sector in Ireland was a key part of the Government's strategy.

"The participation of our best food companies in our trade mission to Japan is another milestone in the process of building a vibrant Irish functional food sector."

At a separate seminar focused on the pharmaceutical, biotechnology and medical technology industries, he said these sectors had been one of the principal driving forces behind the success of Irish manufacturing on global markets. He said that Japan was a very important market and one that demanded the highest standards.

The official visit by the Taoiseach marks the 50th anniversary of diplomatic relations between Ireland and Japan. It continues until Saturday.

Harry McGee

Harry McGee

Harry McGee is a Political Correspondent with The Irish Times