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Dáil will debate IMF economic report

Brian Lenihan - IMF report 'fair'
Brian Lenihan - IMF report 'fair'

The Dáil is to debate the IMF's report on the economy after the Government came under pressure from opposition parties.

Fine Gael, Labour and Sinn Féin said they would withdraw co-operation on the business of the house if deputies were not allowed to discuss the document.

Earlier, Finance Minister Brian Lenihan said the IMF supported the Government in the measures it was taking to repair the public finances and save the banks.

The Minister said the IMF had not singled out Taoiseach Brian Cowen for special criticism and he criticised opposition parties for failing to come up with alternatives during recent years when the property market was overheating.

He insisted the Government was moving with resolve to deal with the country's economic crisis, adding that the key issue was not a blame game but how we are getting out of current difficulties.

He said he had met IMF economists during their visit to Ireland and it was the toughest interview he had endured since becoming Minister for Finance.

On NAMA, he said the IMF and the Government were in broad agreement and that he had always made it clear that the public ownership of particular lenders would increase if their future losses were of a sufficient scale.

Minister Lenihan offered to meet the small and medium enterprises lobby, ISME, to deal with their concerns about late payments on bills from the private sector.

And he said that the Government had to be careful about spending money on job support subsidies because of the negative impact it could have through undermining and displacing other jobs.

The Minister also told RTE News that he regretted what happened to the economy but when pressed he stopped short of an apology on behalf of the Government.

IMF report 'fair'

Earlier, Mr Lenihan described the latest report on the Irish economy from the International Monetary Fund as a realistic and fair assessment.

However, opposition parties said the report was a damning indictment of the Government's handling of the economy.

The IMF report found that generous rises in public sector pay had pushed up wages, making Ireland less competitive, and perhaps making it the most overheated of all advanced economies.

The report also warned that Irish banks faced losses of €35 billion by next year, and was broadly supportive of the Government's NAMA project to buy back bank debt which, it said, would work better if the banks were nationalised.

The Minister for Finance, Brian Lenihan, welcomed the report's findings, describing them as 'a realistic and fair assessment.'

The Fine Gael finance spokesman, Richard Bruton, said the report highlighted the serious failure of domestic policy in recent years, and how the recession was largely driven by Fianna Fail's mistakes.

He called for a firm plan for the economy which had to include plans for job creation and to restore competitiveness.

The Labour Party's Joan Burton described the report as a verdict on the Government's poor handling of the economy.