DEALING WITH RECESSION...

It is interesting to read of alleged tensions between Irish PM Brian "Biffo" Cowen and his Finance Minister Brian Lenihan over how to cope with the severe economic crisis in which the Republic of Ireland now finds itself engulfed.

I find myself in broad agreement with Lenihan who appears to want to make savage but necessary cuts right now to the state sector in order to avert a deepening financial crisis. Cowen, by contrast, is supposed to be favouring a more conservative stance, waiting until every argument is exhausted to gain wider approval from the trade union movement before finalising any cost-cutting plan. A spokesman said Mr Cowen "hopes to have a deal by the end of January, but there is no firm deadline set". Fiddling while Rome burns!

The worsening state of the public finances means the budget deficit for 2009 will be €20bn, with €11bn of this borrowed to pay for current spending and €9bn borrowed to pay for capital spending. Overall, 20pc of Government day-to-day current spending will have to be paid for by borrowing.

I think that Lenihan is on the right track and Cowen's hesitation at this time may make a bad situation even worse in the future. This is not the time for courting trade unions, it is a time for drastic action which means reducing the scale and costs of the State!

Would that Brown and Darling had the same wit!!!