ANALYSIS:Looking beyond election is laudable but 100-day targets only relevant if party governs alone, writes DAN O'BRIEN, Economics Editor
ENDA KENNY has a five-point plan. It is to be rolled out over the next five years if he wins power on Friday. Yesterday, the Fine Gael leader detailed how he would begin implementing that plan as soon as he gets his feet under the taoiseach’s desk.
In the 100 days after he takes office he has prioritised the implementation of 25 measures. By late June five actions are to be taken for each point in the five-point plan. The “100-day strategy” was all set out in a pleasingly symmetrical one-page, 5x5 table distributed to attendees of a briefing yesterday morning.
Fine Gael does not appear to know the difference between strategy and tactics. No matter, the document helped demonstrate the party’s preparedness for government and ability to prioritise, both of which will be much needed by whoever takes the helm.
Having spent just 30 months in office over almost a quarter of a century, Fine Gael’s people have limited experience of running the country. Given the multiple and immediate crisis situations the new administration will face – on banking, the bailout and corporation tax – there will be little time for them to find their feet.
Setting out policy priorities gives reassurance that the party has been able to look beyond the election to consider what it will do with the spoils of victory, and how it will go about achieving its aims.
Yesterday’s document, and the speeches at its launch, did not dwell on what cannot be done (because of bailout constraints), but rather on what can be done. This is no bad thing. Proactively getting to grips with matters over which an Irish government retains influence could help foster confidence, not least by differentiating the aspirants from the incumbents, who consistently failed to get ahead of the curve on the big issues.
As the purpose of yesterday was as much about vote catching as it was about policy sequencing, the 25 measures included were selectively lifted from Fine Gael’s manifesto. They were mostly both good politics and good economics. Measures that are needed but that displease interest groups, such as public sector downsizing or liberalisation of the legal profession, were not included.
The good politics, good economics theme was notable in relation to budgeting and banking. Bank directors appointed before September 2008 will be removed. This will not only be popular, but should do something to counter perceptions that Ireland is crony-ridden.
Ejecting failed directors should also go some way to dealing with the enormous moral hazard problem that exists in finance.
An independent watchdog to protect taxpayers’ money from profligate politicians is also to be set up in the first 100 days. Given how politicians have blown the public finances twice in a generation, taxpayers can only welcome this. Given that international evidence shows such watchdogs really do make a difference, the commitment will please policy wonks too. (There was no mention, by the by, that this watchdog must be in place by June under the terms of the bailout.)
On jobs and growth, VAT will be cut in the first 100 days. So will PRSI and red tape. €100 million will be made available to lend to people starting small businesses.
More dubiously, legislation will be introduced to guarantee some bank lending. Telling any financier that his bad lending will be insured by the taxpayer creates more moral hazard, not less.
Richard Bruton was unusually animated at the briefing. He very clearly relishes the prospect of taking charge. But the issues listed for public-sector reform were mostly crowd-pleasers, such as introducing a car-pooling system for ministers. The changes previously committed to that could effect real change – such as the appointment of a minister of public sector reform and the opening up of some key jobs in the Department of Finance – were not listed (Bruton told The Irish Times last night that despite their omission these changes would indeed go ahead in the short term).
All of the 100-day targets set out are relevant only if Fine Gael governs alone. If the party enters into conclave with the Labour Party on Monday they will be rendered meaningless. Such is the nature of coalition government.