New figures from the CSO showing a severe slowdown in the rate of economic growth during the final quarter of 2007 represent the latest in a series of wake-up calls to the government on the state of our economy.

In recent months we have had a serious deterioration in the Exchequer situation, a significant increase in the numbers on the live register; a renewed upward drift in the rate of inflation; and a report from the ESRI forecasting the lowest level of growth since the 1980s.

The one area of economic strength towards the back end of 2007 was our exports, which have put a brake on the economy slide. However, with the euro soaring against the dollar and sterling, Irish exports, and particularly manufacturing exports, will face the most severe challenge as we move further into 2008.

Unfortunately this government seems transfixed by the Taoiseach’s Tribunal problems and appears to be incapable of taking any action to deal with the serious economic situation in which we now find ourselves.

The government was happy to claim credit for economic achievements in the good times, but now is attempting to blame international factors for the downturn. While Ireland is not immune to international economic conditions, the principal cause of our current problems is the over reliance of the Fianna Fail government on the construction sector. The Minister for Finance, Brian Cowen, was the principal architect for this economic strategy and must bear a great deal of responsibility for the current situation. The way in which Minister Cowen walked us into this situation, has to raise very serious questions about Fianna Fail’s reputation for sound economic management.

Dealing with the new economic situation will require the undivided attention. This is unlikely to happen while Mr. Ahern’s Tribunal problems continue to dominate the political agenda.