If we blew the boom, let's see how we handle bust
Interests groups will be lining up soon, like Oliver in Oliver Twist, pleading 'Please sir, can we have more' but Finance Minister Brian Lenihan will find the cupboard getting barer by the day
Thursday June 26 2008
"We Blew the boom" proclaimed the headline in this newspaper on Tuesday. The economic case against the Government seems to be gathering pace and they can expect little sympathy from the electorate.
After spending years claiming undue credit every time the sun rose in the sky, the flipside now is that the politicians will get blasted for events that they can do little to control.
In much the same way as we seem to have "No Plan B" to deal with the rejection of Lisbon, the ruling administration has yet to produce a Plan B to protect the lifestyle and wealth that the people have become used to.
The bottom line is that we have become a bit spoilt and while Brian Cowen might be itching to point this out, I would advise against it.
He is still fresh in the chair and what must be done now is to make a bold statement on what type of economy will carry us through the next 20 years.
The 1990s were characterised by massive tax breaks on property which are now about as out of touch as an avocado bathroom suite.
Favour
The VCs did well out of the boom, the Government should call in a favour by getting them on board to identify the emerging hot areas of the IT and Biotech industry.
And no, I'm not calling for yet another quango. Their services should be given free reign. Tax breaks should then be given to those who invest in companies operating in these areas.
These are capital intensive businesses and flinging a couple of hundred grand in grant support is about as useful as the Kerry hurling team.
The premium is now on vision.
- Daire O'Brien
