Speaking on the theme of internal and external threats to the Irish economy, Shay said these rent hikes would inevitably seep into wage bargaining, as they did between 2002 and 2008. “There is an urgent need for Government intervention in the housing market. Private tenants must be given greater security of up to five year leases, up-rated by the consumer price index,” he said.

Emphasising the need for policies to address the housing shortage and soaring rents, Shay highlighted the National Economic and Social Council’s (NESC) proposals for an off-balance sheet social housing programme.

Separately, the Irish Congress of Trade Unions has called for a huge boost in public housing investment in its pre-budget submission, which was published last week.

Wage policy forum

He also said the absence of a national wage policy, and a forum for wage policy discussion, were threats to Ireland’s economic wellbeing. “Despite the terrible mistakes made by the Troika and the Government, we are now seeing the first indications of recovery translating into the beginnings of pay movement in parts of the private sector. This is happening company by company. It is too early to consider any national agreement but we will eventually need a national framework for productivity and wage movement in the environment of a single currency and global competition,” he said. 

He repeated IMPACT’s demand that the EU deal with the unfair debt burden placed on Ireland by the bank bailout, which had saved the European banking system. “The absolute priority of our Government should be to continue to redress the burden. Less than five million Irish people shouldered 42% of the cost of the European banking crisis. A modest recovery in our domestic economy will not overcome the monster of this unjust debt,” he said.

The full text of Shay’s speech is available to download HERE.

See a video of Shay’s speech.