Keeping the State afloat, mending fiscal leaks and chopping away fallen spars has dominated the Government's agenda for the past number of years. Now that the troika is leaving, however, the National Economic and Social Council has warned that success will ultimately depend on the effectiveness of a reformed public administration. The intervention is important because it has the support of the major economic and social interests.
Devising more inclusive and effective ways of doing business has become a regular theme in Irish life. Progress has been made. But sectional interests frequently dominate debate to the detriment of a unified development perspective. To counter that, the NESC advocates the establishment of organisational, information systems and policy processes that will support “frontline quality, accountability and responsiveness”. As part of the initiative, it favours the establishment of a State business development bank; the “greening” of the economy and dialogue between competing, but complementary, interests.
The repair of Ireland’s fiscal reputation arising from the introduction of €26 billion in budgetary adjustments and improved competitiveness provides an opportunity to plan for the future. An inclusive agenda that encourages and supports all strands of society is vital. The report notes that not enough was done to tackle poverty and deprivation during the boom years. Seán Lemass maintained that a rising economic tide lifted all boats. But, while standards of living certainly rose during industrialisation, wealth gravitated upwards. During the boom years, according to the NESC, social progress was “less than believed” and many people remained in relative poverty.
Since then, welfare benefits have been cut while measures aimed at reducing professional medical and legal charges have faltered. Similarly, a budgetary commitment to cut tax relief for pensions in excess of €60,000 was not kept while a levy on smaller pensions was extended.
When the troika arrived in Dublin three years ago, it spoke of a need to reduce charges within the legal and medical professions. But some sectors of the economy appear to be “no go” areas. Accountability and financial oversight within the health services remains opaque while legislation dealing with the legal profession is stuck in the Dáil. The Croke Park and Haddington Road agreements offered the prospect of reintroducing special payments and concessions for public servants once the fiscal crisis had passed. It was an unwise idea in the context of necessary reforms and the need to make savings of between 3 and 5 per cent for the next two years. In preparing its seven-year economic plan, the Government should reject such wishful thinking and provide a coherent vision of an economic and social future that will benefit all citizens.
