Irish Economy in Trouble

O'Connell Bridge, Dublin

Australians have a strong affection for Ireland. Many were sent here as convicts for the term of their natural life. Ned Kelly was Irish. But the Irish economy is in trouble and they say the fear is palpable.

I can remember a few years ago when their economy was jumping out of its skin, but now the country is consumed by domestic debt. Two weeks ago David Hall set up a free legal aid service to help those facing repossession. "People are at their wits end, they don't know what to do" he said. Emigration is at its highest since the recession of the 1980's and graduates have little choice but to migrate or leave for job opportunities in the UK and elsewhere. One graduate said "I know we are the country's future, but at the same time, why should we stay and pay for someone else's mess?"

There is widespread feeling that more bad news in yet to come. It's estimated that 200,000 ordinary folk with home mortgages may have debts bigger than the value of their homes. If economic experts are right, the economy is descending into a "deep freeze".

The Irish pub trade is also suffering. One publican said "Last Tuesday, all I sold was a packet of cigarettes, that's how bad it is. I was lucky on Wednesday, if I can use that phrase, because there was a mass for a boy who had commited suicide in the church across the road so we had about 30 lads in after the mass but an hour later, it was empty."

A restaurant owner said it was hard to get credit. Before, if you wanted an overdraft you could just make a call to the bank - now you have to do due diligence before you are even considered, and even then it goes to a credit committee" he said. "There is a feeling that people are running out of money and surviving on reserves".

Big cuts are expected in next month's budget, especially in social welfare. Not everyone thinks a bailout by the International Monetary Fund would be a bad thing. "The IMF came into Britain in 1972 and didn't really affect them" said Peter Fitzpatrick who runs a property management firm in Dublin. "People go backrupt and bounce back. Countries also go bankrupt and bounce back. It might be better for us to face it head-on than have a long, slow death."