A view made all the more stark when it comes from Jim Power, one of the few economists in the Irish Republic, who stood out from the common consensus and urged the Dublin government of the day not to join the euro zone!
As guest speaker at the ‘Securing the Future’ seminar for Ulster pig producers Jim Power warned that the euro crisis and global recession will impact on UK agriculture even though this is one of the few industries still growing across the British Isles.
A farmer’s son and former chief economist at the Bank of Ireland Jim Power left his audience in no doubt that the world had lived beyond its means for over 20 years.
The solution was painful, but necessary to avoid even worse economic and political turmoil. Public spending must be cut, taxes raised and the banking system reformed as citizens and states learn, like Mr Micawber, to live within their means.
Yet saving the euro might prove impossible as this was a currency without a country as there is no United States of Europe. “Without the central banking control and central financial regulation seen in a nation state such as the USA, UK or Canada a currency logically cannot exist. Hence the drive by Germany and France to bring the euro nations much closer together with the central fiscal control and discipline required to save the currency.
“Can they succeed, is it too late and will the PIIG nations, Portugal, Ireland, Italy and Greece, default on massive government loans thus putting banks at risk of defaulting? Questions that will be answered within weeks or even days. “However, amidst this crisis prospects for the pigmeat sector remain encouraging as demand continues to grow world wide, especially in the Far East, “Jim Power affirmed.
“EU pork production is still in decline due to a dearth of credit and too many expensive regulations, but overdue cut backs in public spending at regional, national and EU level may see a more logical approach to how these regulations are viewed and enforced.
“Meanwhile the drive towards greater on farm efficiency will continue and this, combined with tight margins in a volatile market will see the trend towards, fewer, but larger units increase. As ever, the best in the business will not only survive, but thrive by investing in research and adapting new technologies to meet ever changing market needs.”
Pictured above (left to right) are Jim power, Chief Economist, Michael Maguire, Pig Director, Devenish Nutrition, Owen Brennan, Managing Director, Devenish Nutrition.
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