Peter Sutherland addresses Institute of Directors' Autumn Lunch
Date: 24 September 2010We can and will get out of this mess if we have the will to do so, says Sutherland
Speaking today at the Institute of Directors in Ireland Autumn Lunch, Peter Sutherland issued a strong call to the country’s leaders to take the painful steps needed to restore confidence in Ireland Inc.
“Almost a year ago we acquired a credibility that is in danger of being lost. We acquired it because of a brave budget. We now have to step up to the plate again to recreate confidence, we will be given no benefit of the doubt and reliance on growth is not going to work.”
While acknowledging the successful auction of €1.5bn of government debt this week, Sutherland commented that Ireland’s position in the debt markets has greatly deteriorated due to the dire state of our public finances and as a result of market perceptions.
“It is hardly surprising at present that there is an air of fatalism consistently nurtured by negativism but it is surely not in our character to give in to this. We can and will get out of this mess if we have the will to do so.”
Sutherland called for hard decisions to be made in terms of Ireland’s competitiveness and cutting costs. “Competitiveness is all about productivity. Our costs are still far too high. We have really failed to benchmark our costs – particularly but by no means exclusively, wages and salaries – to other European countries. If we did so, it would be apparent that we are still way above average in many areas, particularly in the public sector and this says nothing about pension costs. We have to recognise that as currency devaluation is not an option, downward flexibility in wages and prices is essential to avoid unemployment.”
He continued; “The figure of €3bn has been postulated as the improvement to be sought in the next budget. We are told that this is all that the political system can bear but if all the mainstream political parties accept that more is required and are prepared to say it, we can find a way. The Governor of the Central Bank has said we should do so. These cuts involve pain. But the alternative is much greater pain through the higher cost of borrowing if we fail to act decisively.”
Sutherland concluded; “We must follow the painful but plausible course of continuing to reform our economy in a manner that removes the glaring inefficiencies and excesses of the past. The challenge can be dealt with if we have the collective will to do so.”
Ann Riordan, President of the Institute of Directors in Ireland echoed Peter Sutherland’s call for leadership; “It is time for Ireland’s leaders to act. From those running the country to those at the helm of Irish business, immediate and decisive leadership is vital to restoring confidence. Those in positions of power are uniquely placed to represent Ireland on an international scale and they must make a definitive contribution to rebuilding our public image abroad.”
The Institute of Directors in Ireland Autumn Lunch was kindly sponsored by McCann FitzGerald Solicitors and was held in the Four Seasons Hotel, Dublin.
Ends
Click here to download the full speech
Media Coverage:
RTE Six One/Nine News 24 09 10
RTE Morning Ireland - Today in the Press 24 09 10
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