TÁNAISTE EAMON Gilmore has strongly defended the Coalition’s economic management council against claims that it is a “star chamber” or elitist “government within government”.
Mr Gilmore has instead described the council as having transformed Government decision-making, allowing Fine Gael and Labour to bring a joined-up approach to confronting the State’s major economic challenges.
The council comprises the four most senior members of Government: Taoiseach Enda Kenny, Mr Gilmore, Minister for Finance Michael Noonan and Minister for Public Expenditure Brendan Howlin.
Mr Gilmore dismissed Opposition criticism of the council, saying it was one of the most effective new entities created by the Government. “We have the offices of the Taoiseach, the Tánaiste, Finance and Public Expenditure come together; the Central Bank and the National Treasury Management Agency also attend the different meetings . . .
“Now we have at the centre of Government a strategic centre that brings together the two parties in Government and the two centres of economic power in Government. “There is a joined-up approach to economic policymaking, to banking and approaching various issues relating to the European Council and the overall strategic approach to the euro.”
The Tánaiste said the Government was optimistic its decision not to touch income tax in the budget would provide a boost to the domestic economy in 2012.
“We know that there are very high levels of savings in the Irish economy because people feel uncertain in the future. It’s the first time in over three years that [people know in January] that their take-home home pay is not going to be less than it was in December.
“We are hoping it will help boost domestic demand and help growth.”
The Tánaiste also strongly suggested the Government would honour the Croke Park agreement with public sector unions to the greatest extent possible, even in the event of a serious euro deterioration.
“If the crisis in the euro zone and the uncertainty surrounding the euro does not abate, then obviously it is going to have serious implications for our economy. If that does not happen, there are implications for our economy . . .
“It’s important when the Government concludes an agreement with a sector of society, in this case with the trade unions representing the public sector, that it works to honour that agreement and is seen to honour it. Otherwise the Government’s credibility in coming to agreements of any kind will be undermined.
“There is a review provision that both sides can sit down if circumstances have changed and the implications of the changed circumstances are put up on the table.”
On the euro referendum, he refused to be drawn on comments by Mr Noonan that it would boil down to Ireland being in or out of the euro. “We are better not to cross that fence until we come to it. We do not yet know if a referendum will be necessary.”
He described the experience of being in Government as “tough” but also satisfying. He said the Government had had to make some very difficult decisions, but he found these challenges satisfying.
He will make his first visit as Minister for Foreign Affairs to the Middle East in late January, visiting Israel, Egypt, and lands under Palestinian control. “We made our position on Palestinian statehood very clear at the United Nations,” he said. “We have to ensure that peace talks take place between all the parties in the Middle East.”
