Pfizer job losses a crushing blow for Dun Laoghaire

Speaking following the announcement this afternoon (Thursday) that pharmaceutical giant Pfizer is to close its plant at Dun Laoghaire with the loss of 210 jobs, Fine Gael local Senator, Eugene Regan said the move will have a devastating impact on the area and will come as a crushing blow to workers and their families.

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Nothing to Fear in EU Budget Peer-Review Proposal

We cannot expect bailouts from Brussels of the scale that has just happened - €750 billion in the last week - without playing our part in co-operating in the co-ordination of budgetary policy. 

Continue reading Nothing to Fear in EU Budget Peer-Review Proposal…

Assistance for EU Member States

When I consider the extent of the measures adopted by the European Union in solidarity with certain Member States, including Ireland, all I can say is, Thank God for the Lisbon Treaty. 

The solidarity clause contained in Article 122 of the Treaty states the Union can provide financial assistance for Member States that are in difficulty as a result of exceptional occurrences.  It is upon this essential provision that the package announced at the weekend is based. International markets do not respect borders or the sovereignty of Member States.  The European Union has done more to protect the sovereignty of this country than could any measure we might ourselves take.  There is not a loss of sovereignty in playing the game in respect of the management of our budget, the public finances and the economy.   

In 2001, when Mr. McCreevy was Minister for Finance, Ireland was the first Member State to break the Union’s guidelines in respect of its finances.  Despite a reprimand from Brussels to the effect that we were spending too much and that the public finances were getting out of order, the then Minister for Finance confirmed that he intended to continue spending.  That was the point at which we lost our way.  It was when we considered that we knew best and could, as a result of our high growth rates, go it alone, but we now know the folly of the position we adopted at the time. 

 The former Minister for Finance indicated that he would ignore the Union’s censure on the grounds that inflation was already coming down and that the measures he had taken the previous December were necessary in order to maintain social partnership.  All we need to do is to play the game and recognise the economic reality, namely, that we must co-ordinate our economic policies with those of other Member States.   

We must also adopt honest, transparent and consistent policies.  It was announced in the budget that policy on public service pensions would be reformed.  On Friday last, however, the Government did a U-turn and changed its position in this regard.  I do not know whether there is a saving to be made in making such a change, but we must be consistent in the policies we adopt.  We must explain our position more fully to the European Union if we hope to avail of the support available.  

Government Cuts Funds for Struggling Businesses by a Whopping 70%

Enterprise Ireland’s budget for firms in trouble slashed from €83m to €25m

Fine Gael Senator, Eugene Regan, has today (Wednesday) revealed that Enterprise Ireland’s budget to assist firms having difficulty staying afloat has been cut by an extraordinary 70%, going from €82.7 million in 2009 to just €25 million this year. 

“Recent reports suggest that the Government has stealthily slashed financial supports to businesses by cutting the Enterprise Stabilisation Fund (ESF) by €22 million, a move which was made behind closed doors and never formally announced. The truth is that the cuts to struggling firms are much deeper with investment and financial assistance being reduced by a whopping 70%. 

“In 2009 Enterprise Ireland’s ‘Budget Allocation for New Approvals’ approved €82.7 million for investment in sustaining companies, which included the ESF as well as other expansion projects. This sum, however, has been savagely cut by nearly €60 million this year. 

“Schemes such as the ESF were designed to protect jobs in viable companies that were struggling to make ends meet during the recession. Funds were to be made available to manufacturing and internationally traded firms that were expected to return to growth when the upturn came. 

“To cut these funds in such a brutal manner is to essentially throw the towel in on the Irish economy. Export-led growth is essential to Ireland’s recovery and at a time when 435,000 people are on the dole queues, the Minister for Enterprise should be securing whatever funds he can to help firms hold on to their businesses. 

“We cannot spend our way out of this recession. However, we do need a coherent enterprise policy backed up by resources to maintain and secure jobs.” 

Ends

Urgent need for debate on NAMA and the Banks

Yesterday in the Seanad I asked why we are being given the runaround with regard to a debate on the banks and NAMA. The only logical explanation is that the Government is at sea on the banks and totally confused with results such as those posted by AIB yesterday.

The implications for the Government of the corrections to the NAMA scheme in the final approval being given by the Commission may not yet have been fully assessed.

At the same time, I do not consider it acceptable because last year the Leader promised that we would be regularly updated on NAMA. For two weeks in succession, he has promised the House a debate on the banks and NAMA.

We are a year and a half into the banking crisis, credit is still not flowing, no one is responsible for what has happened and no one has been held responsible. It can be seen in the AIB results that between bond buybacks, the selling of assets, the transferring of toxic loans to NAMA, the rights issue and the divesting of assets, that it will be another 18 months before all of this is done and dusted and credit flows.

It would be very useful to have a debate on the banks as well as some clarity on the part of the Government as to where we go from here.