Dáil Éireann debate -
Wednesday, 28 Jan 1998

Vol. 486 No. 1

Written Answers. - Post-EMU Intervention Mechanisms.

Michael Ring

Question:

61 Mr. Ring asked the Minister for Finance his views on the mechanisms which would be available to an Irish Government with EU approval to intervene in exposed sectors of the economy in the event of an economic shock after Ireland joins EMU, particularly in view of the difficulties he experienced in his negotiations on the corporation tax regime post 2010; and if he will make a statement on the matter. [1917/98]

Minister for Finance (Mr. McCreevy):

I would like to draw the Deputy's attention to my reply of 19 November 1997 in relation to consultations with the exposed sectors regarding EMU. The consultants appointed by Forfás under the auspices of the EMU Business Awareness Campaign to examine the implications for Irish industry of the UK remaining outside of EMU are expected to report in February. Their report will provide concrete, practical guidelines to firms in exposed sectors of the economy as to the steps they should undertake in preparation to compete successfully in EMU. As I indicated last November, once the report is completed my colleague the Minister for Enterprise, Trade and Employment will initiate a consultative process involving the social partners into the issues raised by the report.

The Deputy will also be interested to learn the result of a meeting earlier this week between the Taoiseach, the Tánaiste and myself with representatives of ICTU which considered, among other things, the implications of Ireland's entry into EMU. It was decided, that the Government, congress and employers' organisations should meet shortly under Partnership 2000 to accelerate the preparation for the competitive impact of EMU on the Irish economy.

It was recognised at the meeting that the competitive challenge posed by EMU for the economy will require an intensification of the flexibility and problem solving approach to economic policy which has characterised the relationship between Government and the social partners over the last decade. I am confident that the Partnership approach which builds on the successes of the past, while retaining a clear focus on the need to secure Ireland's international competitiveness in the future in EMU, represents the best mechanism to address the competitive challenges which may lie ahead.