EDITORIAL : THE INDEPENDENT, IRELAND

       

 

Why Ireland must raise its game now

The IMF's scathing assessment of the economic policies pursued by the previous government should serve as a warning to the current administration of the need for Ireland to raise its game. By accusing the former government of a lack of "political fortitude", diplomatic-speak for utter gutlessness in the face of selfish, vested interests, our new masters have made it clear they expect much better, from the new Government.

In addition to criticising the political cowardice of the previous government, the IMF was also scathing about many of our institutions.

While the IMF's strictures will have come as little surprise to anyone following Ireland's economic collapse, they still serve as a welcome reminder that, a change of government notwithstanding, much more needs to be done before this country can emerge from the crisis.

Despite its reputation, the IMF has played a straight bat in its dealings with this country. Unlike the EU and ECB, which have both pursued their own agendas, regardless of their impact on Ireland, the IMF is understood to have wanted a lower interest rate. It is charging us just 3.1pc on its portion of the bailout compared to the penal 5.8pc rate being charged by the EU, and wanted to 'burn' the senior bondholders of the Irish banks when the terms of EU/IMF bailout were being discussed last November.

Why didn't the previous government exploit the fact that the IMF was quietly supportive of many of its concerns? A competent negotiating strategy last November would have had this country exploiting the tacit sympathy of the IMF and turning the divisions between it and the EU and the ECB to our advantage.

This didn't happen. Why? Could it possibly be due to the lack of political fortitude and poor quality institutions identified by the IMF? If so our political cowardice and shambolic administration have cost this country dearly.

Things cannot go on like this. The post-Celtic Tiger bust has shone an unsparing light on this country's leadership and its institutions. While the IMF's criticisms sting it is hard to argue with them. The political and administrative system is no longer fit for purpose and requires reform.

We would be well-advised to heed the IMF's advice. If Enda Kenny and Eamon Gilmore are serious about extricating Ireland from the mess it is now in they must be prepared to embrace the far-reaching change that their predecessors shunned with such disastrous consequences.

State employment plan just isn't working at all

With unemployment at its highest level, the ESRI's conclusion that the National Employment Action Plan isn't working is extremely disturbing. Unless these labour market activation measures can be made effective, the numbers trapped in unemployment will continue to rise.

Under NEAP, anyone who has been signing on for three months is automatically interviewed by FAS. If they don't show up for the interview their dole payments are stopped.

The NEAP interview is supposed to produce one of four outcomes; a place on a training course, a place on an employment programme, work experience or referral to the local employment service for more intensive guidance.

That's the theory. The reality is less encouraging. An ESRI audit has concluded that those who were referred to the local employment service were 17pc less likely to find a job. Almost as remarkable is the fact that this is the first time its effectiveness has been gauged.

For employment activation measures to work follow-up is crucial. That seems to have been lacking up to now.

When there was full employment it was sufficient to go through the motions of interviewing those who were still on the dole three months after first signing on. Such a lackadaisical approach is no longer good enough.

                                                                          Dated - 13/05/2011