Tánaiste warns professions over high fees

Updated: 23:13, Monday, 20 July 2009

Accountants, lawyers and doctors could be asked to cut their fees to help drive down costs, and make Ireland more competitive.

1 of 2Mary Coughlan - 'Certain professions have yet to play their part'
Mary Coughlan - 'Certain professions have yet to play their part'
2 of 2Peter Bacon - An Bord Snip Nua report should be implemented in full
Peter Bacon - An Bord Snip Nua report should be implemented in full

Tánaiste Mary Coughlan has warned certain professionals that they have yet to play their part in reducing fees.

The Minister for Enterprise, Trade & Employment was speaking at the MacGill Summer School in Glenties, Co Donegal.

'There are certain sectors where competition and the chill winds of economic reality have yet to reach. Certain professions have yet to play their part and have yet to tell us how they will reduce their fees and charges,' she said.

'There is no place in an Ireland where the majority have to make painful choices for this level of economic conceit from any sector.'

Ms Coughlan also said she had initiated an evaluation of the McCarthy report, which will be examined by Forfás before the Government makes any decisions.

The minister added that the report 'is only part of the process' and that all of the considerations in the report will be examined.

Economist Peter Bacon earlier said the report should be implemented in full.

He said it will not be possible for Ireland to achieve a good fiscal position without substantial reform.

Mr Bacon said the pieces of the jigsaw are there to fix Ireland's problem but that what is not there is the way to do it.

A reduction of wages - including the minimum wage, public sector reform, and difficulties with social welfare contributions and benefits were highlighted by Dr Peter Bacon - the economic consultant who advised the Government to set up NAMA.

His MacGill Summer School lecture was entitled 'Steps to Economic Recovery'.

The economist said the downward adjustment of nominal wages cannot be avoided and that he would not exclude the minimum wage.

He said there is a delusion in Ireland about social welfare contributions and benefits.

Dr Bacon said public sector reform is about creativity and there is a need to bring in outside experience for public sector rationalisation.

He said that Colm McCarthy's An Bord Snip report should become an 'Early Bird' menu and he emphasised that reforms should happen quickly and not over a protracted period of time because that would mean dulled confidence in the Irish economy.

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