News from Ireland

BERTIE AHERN RESIGNS AS TAOISEACH It has been argued that the biggest mistake Bertie Ahern ever made was indicating that he would resign as Taoiseach before the next General Election. Just as Tony Blair in the UK found out, once you indicate that you are prepared to leave office then your position quickly becomes untenable. Had Bertie Ahern decided to face down the opposition parties calls for his resignation and to engage in a more robust defence of his financial dealings at the Mahon Tribunal then no one would have been too surprised. The fact though, that he had already indicated that his days were numbered only served to encourage his political enemies and those media outlets who were clearly gunning for him. The high-profile campaigns by several newspapers and the endless and mocking television coverage of his appearances at the Mahon Tribunal proved to be just too much for the longest serving Taoiseach since Eamon DeValera. His dramatic resignation paved the way for Brian Cowen to become the new Fianna Fail party leader and Taoiseach designate. Having made the decision to resign, the speed with which his former critics started to lavish praise on Bertie Ahern did little credit to the body politic or to the Irish media. It remains to be seen if Fine Gael will suffer electorally for their hounding of one of the most popular of Irish politicians. The fulsome tribute paid by their leader Enda Kenny was viewed by some commentators as ill-advised. He perhaps may have at least been respected had he continued the criticism of his nemesis to the end, rather than betraying himself as a hypocrite by praising the subject of his former vitriol. As Bertie Ahern prepares to address the US Houses of Congress in his last significant act as leader of this small country, a recap of his achievements makes historically dramatic reading. Peace in Ulster:He was instrumental in forging the Northern Ireland peace agreement. It is too easy to forget just how bad life had been in Ulster with daily bombings and killings the order of the day. It would be foolish to under-estimate the part played by Bertie Ahern and his government in bringing a change to the Irish Constitution to provide a backdrop against which Ulster Unionism and Sinn Fein nationalism could make the great leap forward to peaceful politics. This is the man who brought Ian Paisley to the table to do a deal. In a recent speech he stated that his 'parting pledge for all the people on this island is that we have learned the futility of violence'. 'Peace in Ireland is my proudest achievement. It is an achievement I share with thousands and thousands of people across this island and beyond our shores who were voices for sanity, persuaders for justice and the implacable opponents of those who sought to cling to violence as a political weapon.' Booming economy:There is no shortage of parties and groups willing to take credit for the Irish economic miracle of the last 20 years. During that time Fianna Fail has been in Government for all but 3 years, with Bertie Ahern leading as Taoiseach for the last 11 years. While it is clear that the 'partnership' agreements between employers and unions played a significant part in the economic growth, praise must also be given to the taxation reforms instigated by Ahern's governments. The low corporation tax regime adopted by Ireland is now being copied by several other countries in Europe. Unemployment fell to 4% (statistically 'full employment'), home-ownership soared, unprecedented changes were made to the infrastructural fabric of the country. Conclusion:While his political career may yet continue (it is possible he may run for President of Ireland or seek an office in the EU), history will perhaps best remember Bertie Ahern for his role in bringing peace to Northern Ireland. While his governments have had their failings (problems with the Health Service persist), few can deny his status as one of Ireland's most effective leaders ever.

NEW ANTI-ALCOHOL MEASURES ANNOUNCED Efforts are continuing to curb Ireland's addiction to alcohol. The country remains at or near the top of every survey conducted on international alcohol usage. The Irish government has responded by announcing the establishment of a new Bureau of Alcohol Regulation to tackle the problem.

IRISH HOUSING MARKET CONTINUES ITS DECLINE The continuing recession in the housing markets of the US, the UK and Ireland have happened in tandem and show no immediate signs of abating. While the sub-prime problems in the US and UK have seriously dented the markets there, in Ireland the main cause of the slowdown has been over-supply and the several increases in interest rates by the ECB. The scale of the decline has been dramatic with the mortgage market predicted to fall from 40 B.illion Euro in 2006 to 25 B.illion Euro in 2008. The credit crunch that has seized up world lending markets have further dampened activity in the Irish housing market with lenders unwilling to lend while borrowers sit on their hands waiting for the market to 'bottom out'. Estimates vary as to how much Irish property prices may fall back. Some commentators are quoting a 20% reversal as the likely figure before the market starts to move again.

IRISH LANGUAGE SCHOOLS CONTINUE TO FLOURISH The demand for Irish language schools continues unabated. The waiting lists for these Irish language schools (Gaoilscoileanna) have reached two years in some cases. Currently there are 169 primary and 43 secondary schools operating in the State, outside of Gaeltacht areas. 35,000 students currently occupy these schools but the demand for places is much higher.

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