Comment: Frank Barry delivered one of the best diagnoses of the Irish economy to be heard in a long time in his keynote address to the Central Bank conference on productivity yesterday.

Opening the conference, Central Bank governor John Hurley issued the millionth warning about over-reliance on the construction sector and rising property prices. But this was no diagnosis, merely an identification of symptoms.

A UCD academic with a doctorate in economics, Barry was quick to defend the Government in areas where it has been hard-done-by with unfair criticism.

Contrary to some statistics showing falling levels of research and development, he pointed to more sophisticated measures indicating the reverse and praised the success of the Government's Programme for Research in Third Level Institutions. He also nodded approvingly at the work of Science Foundation Ireland and there was a good word for the Government's tax policies.

But when he started cutting, the good doctor went in deep. Acknowledging how rising education levels had contributed to productivity, Barry turned to the one-in-five students who drop out of school before finishing the Leaving Certificate.

"Not only does the lack of educational background increase their chance of unemployment, it means that their potential to the economy is lost."

Contrasting Ireland with Finland, he cited evidence to show that whereas in the latter exam results are based on merit, in Ireland school location and area influence results, leaving one-fifth of young people with no stake in our prosperity.

From ingrained social inequity to deliberate policy mistakes, Barry was soon rattling off a list of cancer symptoms: high house prices caused by high land prices; decentralisation; once-off rural housing; road congestion; and contaminated water tables to name just a few.

The common cancer? "The Irish political system creates a heavy emphasis on localist matters, faction fighting and clientelism," he said. The cure? An electoral system that allocates parliamentary representation proportionately to parties but lets parties choose the members of parliament, as recommended by the Whitaker commission on electoral reform.

But as Dr Whitaker, who was in the audience, could have told him - the sad truth about policy cancer: the patient never wants the cure until it's too late.