BACKGROUND:One suggestion is for Government to establish a council of economic advisers

THE GENESIS of the Blueprint for Ireland's Recoveryreport by a group of 17 business, public and political figures originated with Angela Kerins, the chief executive of the Rehab Group, last autumn.

Kerins wanted to gather a group of influential people to devise ideas to help economic recovery.

The first person on her list was businessman Philip Lynch. The two are now co-chairing the group. The initiative started off with seven or eight people and grew from there.

Meetings were held at Rehab’s offices in Dublin where members of the group attended in person or phoned to make contributions.

They began to gather last October and November and discussions took place ahead of the general election. Ideas were finalised as election manifestos were being produced and a final draft of the report was drawn up after the election last month.

The aim of the group was to tap high-profile individuals with experience in different sectors for ideas which could lead to new jobs and make Ireland more competitive.

None of the members contacted yesterday would comment.

As one member of the group, former Bank of Ireland chief executive Mike Soden, confirmed on RTÉ radio, the group is staying silent until the Government has time to review the report.

Soden described the group as “well-intentioned” people who came up with ideas they thought might be “of genuine assistance”.

Sean O’Driscoll, chief executive of electrical appliance maker Glen Dimplex and from 2006 to 2010 a director of Allied Irish Banks, has taken charge of the next step – presenting the report to Government and meeting the Taoiseach and Tánaiste on the plan.

In broad terms, the group believes 200,000 jobs can be created in the private sector, while at least 30,000 jobs should be cut in a major reform of the public sector and local government.

The report goes beyond the cuts in public spending recommended by economist Colm McCarthy in his “Bord Snip Nua” report. He targeted savings of €5.3 billion, while this group says it can achieve cuts of €9.1 billion on top of this. The report targets a €5.5 billion cut in the social welfare budget.

An overhaul of the political system and a strategy to rebuild confidence in Ireland and the State’s reputation internationally are also among the group’s objectives.

Some of the ideas in the report have already been adopted. The report recommends the appointment of a Minister for Public Reform, a role filled by Labour’s Brendan Howlin in a revamped Department of Finance.

Local government should be reduced in size, it suggests, with the number of councils cut from 34 to nine.

It also wants a a minister for competitiveness and a new Oireachtas joint committee on competitiveness.

There are some interesting proposals to help stimulate business, including a three-year exemption from PRSI and corporation tax for start-up companies.

On education, the report says there are eight third-level institutions in the greater Dublin area within a 30-mile radius.

“We have the potential to create one major University of Ireland,” says the group.

There is also a curious detail on the construction industry, which is likely to have had some input from the only property developer in the group, Corkman Michael O’Flynn.

The report disputes the claim that there are 300,000 new vacant houses, but says the oversupply differs – from 1.1 month’s supply in cities to more than four years’ supply in remote locations.

Taking any unilateral action against senior bondholders would be “unwise” and should be contemplated only as part of an agreed ECB-EU approach, the group says.

The report suggests that AIB and Bank of Ireland should be sold to foreign buyers and the remaining banks merged into “a third force”.

AIB board members Dick Spring and Michael Somers and Soden, a Central Bank board member, are among the group.

Not surprisingly, given the involvement of Somers, a critic of the National Asset Management Agency, and Michael O’Flynn, the group is very negative on Nama.

But the group’s objectives are more passive than active.

“What we would like is for the Government to examine these ideas – it is their choice whether they use them,” said one source close to the group. “There will be no pushing or shoving on this.”

Interestingly, one suggestion from the group is for the establishment of a “council of economic advisers” comprising expert business leaders and others “to advise Government at a senior level as to how to successfully re-engineer our economy”.

You would wonder where the Government might look for them.

The aims: what the group hopes to achieve

The proposed measures in this blueprint, if implemented, could have the following impact over a five-year time frame:

* The creation of 200,000 jobs by 2015.

* The injection of €7.3 billion per annum in wages into the economy.

* Increased tax revenues of €2 billion per annum.

* A reduction of €5.5 billion per annum in social welfare expenditure.

* The achievement of savings of €5.3 billion through the implementation of the McCarthy report recommendations.

* A further reduction of €3.6 billion per annum through restructuring local government and a tightening in welfare expenditure.

* The achievement of annual economic growth of 5 per cent by 2015.

* The ending of forced emigration.

* The restoration of Ireland’s reputation as a great place to do business and a great place to live in and visit.