Oireachtas Joint and Select Committees

Thursday, 2 July 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. Brian Cowen:

Well, I think there's no doubt that, you know, our costs were affecting our export performance. There's no doubt about that. And what I'm ... all I would say to you is given that you had a very tight labour market, you had to stop wage pressures, you had to reduce taxes to keep disposable income in their pockets, you know, to avoid them coming with claims of 6%, 7% or 8%, which would exacerbate your competitiveness problem, and try and build productive capacity so that you can ... that you can meet increased demand that way, otherwise ... but I do accept, you know - there's no point in saying otherwise - the construction sector became a far too big component in economic activity and crowded out some economic activity elsewhere, that's ... that's-----

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