Ahern defends handling of economic downturn

Fine Gael leader Enda Kenny's criticism of the Government's handling of the economy drew a sharp response from the Taoiseach.

Fine Gael leader Enda Kenny's criticism of the Government's handling of the economy drew a sharp response from the Taoiseach.

"I think, Deputy Kenny, you take a certain satisfaction that there is an international downturn in the economy," said Mr Ahern.

"I do not think that, as a serious political leader of a party, you should take that view." Mr Kenny said: "That is disgraceful." The Fine Gael leader had challenged the Taoiseach to give "a weekly update of just how you are going to steer this economy through this crisis".

Mr Ahern said he had done so very successfully for the past 10 years and he would continue to do so.

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Earlier, Mr Ahern warned that "the one thing we do not need to do is what others in Europe are trying to do in some of the financial services end . . . to try to have a hit against this country because we are a strong competitor on the foreign direct investment market".

Although he was not saying that Mr Kenny was doing that, the Fine Gael leader was aware that at least "two operators" in Europe had been doing so in recent months, he said.

Mr Kenny said that January had seen the largest monthly increase in jobless figures since 1980. Fás had predicted that up to 30,000 job losses could be expected this year, with a 50 per cent fall in apprenticeships in some areas.

He added that there was anecdotal evidence of apprentices being laid off before they completed their training.

Mr Kenny suggested that the Government was completely out of touch with the situation. He said that the Taoiseach should direct Fás to focus on areas of training where there was a shortage of workers.

He also suggested that the Government should double the number of schools being provided.

Mr Ahern said he was not claiming that everything was rosy in the garden. Since last August, there had been a financial market crisis throughout the world.

He said the Government was trying to ensure that there was training in the sectors where there was employment.

In the construction industry, there were huge developments across major capital projects in the non-residential area.

"Productivity becomes essential when the international markets have a downturn," he said.

Michael O'Regan

Michael O'Regan

Michael O’Regan is a former parliamentary correspondent of The Irish Times