IRELAND must learn the lessons of the 1980’s if it is to recover from recession.

In his first public lecture since quitting Fine Gael, former RTE Economist George Lee said Ireland should focus on securing investment ahead of satisfying loans payable to Europe.

“We didn’t know the 27 gateways to Europe as we do now. Our problem is capital, we need money.

“When we joined Europe we gave away all our economic policy instruments bar a few. We have control over Europe in terms of our income tax and corporate tax rate, as contained in the Maastricht Treaty. We cannot passively wait, why talk about it if you are never going to use it?” he said.

He stated that Ireland should also follow in Britain’s footsteps. “In the Leader’s Debate in Britain they said you must be mad to correct the deficit. They are out of recession. They cut interest rates to zero, began printing money (quantitative easing) and cut vat rates to ensure competiveness, while we increased them. Their recovery plan was backed by Nobel Prize winners.

“This is the worst crisis since World War I in Europe. Unemployment, a zombie like banking system, we are fearful,” he added.

He said that politicians and economists alike could not claim they didn’t know the implications of joining the euro were. Our GNP growth is -11.2%, while Britain’s is at -0.5%, and they are effectively out of recession, he said.

Mr Lee said that he was fully Pro-Europe, but that reducing the deficit from 13% to 3% by 2014 was a man made rule for normal circumstances. “These are beyond extraordinary circumstances. Think, stand up for ourselves. We need assistance, we are part of the club.

“We need pension funds to be invested here. People need to see real physical infrastructure, projects and colleges. Invest in energy and water.

“Unemployment is a scourge, workers have lower skills and are walking in and out of employment. We have 50 percent long term unemployment. Our investment is walking out the door,” he added.

Ireland needs to look at competitiveness. The cost of goods here are 20 percent more expensive than in Britain and our services are 32 percent dearer, he said.

While Mr Lee hinted at a return to RTE in August, he said that his return might not necessarily be in the economic journalism arena.

“I can’t go back in the manner I have done. Negotiations are ongoing, so I hope to be back around August time at the least.

“Commentators call me biased, but I know that isn’t true. I won’t be able to discuss government policy stories, but I can give financial and international advice,” he added.

His lecture themed Ireland’s Economic Collapse-Where to now? concluded the University of Limerick’s Investigating Current Issues in Irish Journalism Series.

Front: Mary Dundon, Denise Calnan, George Lee and Aisling Hussey
Back: David Kelly and Kieran Foley