On Friday, 24th September, I spoke at the 'Confidence in the Media?' event at the Shelbourne Hotel hosted by Marc Coleman in conjunction with Confidence in Action (Mary Jennings and Helen Fahy). To read my speech, please click the link below:

The following is the text of my speech:

"I am delighted to be asked here today to address this event today on confidence.It is refreshing to be involved in something that is so positive. When I am on holidays, I sometimes ask the newsagent if he can give me a newspaper with good news only.

That does not often happen! I worry there is a danger that we have forgotten how to talk about good news.I would like to share some of my thoughts on the need for confidence in our economy and the fact that we have so much going for us as a country.When I go back and think when I started in 1960, I was 23. The economy was very poor at the time.  In the 1970s we had expanded but things were very bad at that stage as well. Then when you look back into the 1980s, things were tough in those times too. I didn’t know what a recession was – all the time was a challenge for business!

There is a need for perspective – if we just take the 10 year period from 1995-2005; we created over 500,000 additional jobs. While we have fallen from the high of over 2m employed, we still have to hold on to the fact that around 1.8 million people are in employment which is a far cry from the 1960s or the 1980s.

Recent Experiences and the Need for Confidence

I have been involved in a TV series ‘Feargal Quinn’s Retail Therapy’ on RTE. The TV series took me all over Ireland and brought me face to face with the challenges that are being met by retailers in the present environment. What interested me in making the TV series was: ‘Did we make a difference?’  There were three challenges in this: the first was to make a good television show that would be entertaining and of interest. The second was to make sure I was of benefit to the retailers. The third was to hopefully impress Irish retailers so they might learn from it and give us a chance to compete.One of the main messages we tried to put across and actually demonstrated in Retail Therapy is that businesses can succeed during a recession. Having this confidence is vital to get the economy back on track.

We really need to get some of our old confidence back. I hope that those watching the programme, whether they be retailers or whomever, would say ‘hey, that’s an idea. I never thought of that’.The recession has put immense pressure on business owners.

One shop in particular that we worked on during the series, in Claremorris, refurbished its premises and upped its standards.  As a result the shop across the road did the same. Then another shop nearby did also and suddenly, the whole street was upgraded. It is amazing to consider that effect.I think that many business owners were too "relaxed" during the boom years.

During the good times, a lot of shop owners got very relaxed. Money was easy to get, customers were easy to get and you didn't have to work quite so hard.I very much welcome the challenge of making businesses increase their standards.The message I want to impress on businesses is superior customer service. Retailers should be looking for 'The Boomerang Effect' - "You want the customer to come right back to you."

I think that many business people lost sight of this during the boom.It is so necessary to create a friendly atmosphere for new customers. During the filming of Feargal Quinn’s Retail Therapy, in one shop there was a sign that said: 'We don't give change for car parking'. I thought that was terrible because the only message was negative. I was talking to a man who has a business in Blackrock who had put up a sign saying 'we will always give change for car parking.'We also asked another shop-owner on the series that they change their 'We don't take returns after 14 days' to 'We are happy to take returns up to 14 days". During Retail Therapy, the shops featured made great efforts to improve their business in several ways and all of the shops on the series have seen a steady increase in sales. I know of one business which has seen a 100% increase in sales in the past number of months. We must not forget that a lot of businesses are succeeding. 

Role of Media and Business

It is really encouraging that people like John Murray on his business programme “The Business” and through his new programme ‘The John Murray Show’, provides a consistent platform for people who are doing their best in the teeth of a recession.I think there is plenty of encouragement for business in the features side of news.  However, in terms of reportage of the hard news, what are termed ‘variety listeners’, are perhaps too exposed to the cold facts of unemployment numbers, factory closures and government cuts or purse tightening. Of course we need to hear more positive stories from business people - but they are themselves under big pressure and the banks aren’t helping much by curbing credit.

On the other side, these SMEs need to get out there and let the media know what it is that they are doingLook for instance at the green energy project  - The Spirit of Ireland which got the positive publicity it deserved - it is  incredible in terms of jobs and cheap power generation which essentially involves pumping water up hills and letting it flow through turbines. Stories like that are so exciting for me personally. I think that business organisations also need to be pro-active getting their good news messages across.I know that newspapers and radio are always interested in heroes and their battles with banks and the Revenue.

I think that Senator Shane Ross made an interesting point on this subject – he said that he purposely writes his business articles focused on people – as it could be argued that figures don’t mean much anymore. Businesses are adapting to the current climate but perhaps the media has to adapt also to changes and listen to their ‘customer’ as well – their audience.

I think that the media - at least on the features side, are in fact keen to look for an upside - after all we are all in this together so it is in everyone interest to see the country turn around. Perhaps it is in the nature of some journalists to be cynical and down on the government – but that is life – we have to live with it and make the best of the situation. 

Future Outlook

We must remember that economies are cyclical – I, myself have lived through several economic downturns. In terms of my view of how the country is faring as a whole, I believe that honesty is crucial to the country’s recovery. I believe that with the steps the government is now taking, people have more confidence. We are in a recession and business people must remember that we have no control over that. Business has taken a slump but I am very optimistic. I opened in a recession, so they don’t scare me hugely.

The finance philosopher James Grant, who is largely a pessimist about the markets and economies, remarked that, in the economics business, "everything is cyclical, including one's evident IQ. One goes from genius to moron all too quickly". In other words, the same opinions can make you a genius or a moron depending on how things turn out.

The thing is we haven’t just totally lost those attributes that made us a success in the first place. We have many advantages such as the Irish economy’s openness to trade; a high degree of flexibility, a business-friendly regulatory environment and a skilled workforce had not been lost as a result of the global financial crisis. Those businesses which are able to survive this downturn will become stronger, leaner and more efficient.  

We also gained so much – look at the fact that a new study by Trinity College found that the arrival of more than 300,000 Polish nationals to Ireland over the last few years meant that Irish workers had to significantly upgrade their skills. Look also at how well Irish exports are doing in spite of the downturn. Bord Bia said on Tuesday that the value of Irish food and drink exports has increased by more than 8% in the first five months of this year and was worth almost €3 billion. 

Conditions for Business / Entrepreneurs

Businesses need proper support from the Government so that regulatory requirements and compliance costs do not make new businesses uncompetitive. While there were some who abused our lack of regulation in areas like banking, we must not strangle business by over-regulation. We cannot fall into that trap and have an over-controlled state.

Also, the EU has a massive role in helping to set the conditions so that businesses can expand. Look at the fact that the internet is the fastest growing channel for retail sales, yet only one in three consumers would consider shopping online from another EU-country. There is so much potential there.I welcome ideas like a European "trust mark" for websites that guarantee the reliability and quality of goods sold online across borders. Also, there should be an end to discrimination against cross-border customers. Online sales are often hindered by foreign traders refusing to accept orders from consumers living in another EU country on the basis of their electronic address or residence which should be ended.

We must also remember how the EU is helping out so much. A €7.4m re-training fund was announced on Wednesday to help 850 former SR Technics workers made redundant last year. It will be used to further education, training and job placements or as start-up capital for aspiring entrepreneurs.

Some people are saying this is the wrong time to start, to experiment or innovate. I think it’s exactly the right time because there are so many changes taking place. Costs are coming down. The technology is now available. I have an iPhone – if you think what that can do, compared to what a computer would have cost 15 years ago . . . this gadget can do everything. The same thing applies to any business.One of the most interesting interactions I have had on the subject of entrepreneurship was a brainstorming session with several entrepreneurs, in studio on the Today with Pat Kenny show in January 2009. Entrepreneurs will be vital to starting new businesses.  We can’t just sit back and let the ‘smart economy’ get going.

We have to look at ideas like a ‘start-up visa’ for foreign, individual entrepreneurs. Instead of just focusing on big companies, we could set the conditions to encourage individuals with bright ideas to come to Ireland.  I believe President Obama is considering introducing such a visa for entrepreneurs. Look at the fact that Google started as a ‘bottom-up approach’ – it was started by two individuals and was incorporated as a company in a garage 12 years ago.

At the same time, we have to reconsider our approach to bankruptcy. If one is declared bankrupt, the restrictions applied become a millstone around one’s neck for the next 12 years. In England and Wales, one can be in bankruptcy for as little as 12 months. If Alan Sugar and Donald Trump had gone bankrupt in Ireland, they would not have been in a position to create new businesses, take new risks or succeed on a larger scale. F.W. Woolworth went bankrupt three times before he succeeded in building up his empire. We have to give people at least some chance of getting out of bankruptcy and, perhaps, paying their debts at a later stage.

There must be some sort of healthy balance.I think it’s essential that we take chances and that we don’t regard as a failure somebody who has a go, but doesn’t succeed. I hate to find that they’re condemned forever. We should be willing to recognise that entrepreneurship will have failures but be willing to say “okay, the only way you’ll succeed is by having a go.” 

Perceptions of Ireland

I think what we often don’t hear in the media is how hard the government is working on securing investment in Ireland. Government ministers are travelling all over the world to encourage investment. 30 Irish firms travelled to Russia two weeks ago and signed deals for export sales worth over €9 million. Look also at China where the number of Irish companies with a permanent presence in China has increased from 45 to 115 in the last four years.

Credit Suisse has just said that recovery in Ireland is under way, as we benefit from falling prices and wages, boosting exports. Production levels are now back to pre-recession levels. I also know from many international business people that I have spoken with, that they are still so enthusiastic about the business conditions in Ireland.

There are literally billions of euros waiting in the wings to be invested in Ireland. These major companies are looking for the positive signals. They are gaining in confidence with the measures that have been put in place. We all have to remember this fact.I think Donal O’Mahony in last Saturday’s Irish Times highlighted well how news can be distorted to the country’s detriment. He wrote how “a major overseas investment bank opined that Ireland did not require IMF aid assistance – “at least for now”. This morphed into “may yet need help” on the front page of a major Irish newspaper the next day, and from there back to the newswires, only now with Ireland “perilously close” to an IMF intervention.” It is crazy to consider how news can be distorted so much.

I think Donal O’Mahony’s own summary of where Ireland stands is, I think, much closer to the truth. He said: “With the economy once again exhibiting impressive flexibility to hasten the recovery process, and the ultimate burden of banking stabilisation now increasingly quantifiable, Ireland’s creditworthiness is, for the moment at least, both under-appreciated and undervalued.”We must remember in this country that we are not ‘down and out’. This year, our economy will be back to mid-2000s levels.

We need politicians and the public in general to be much more optimistic about our country. Manmohan Singh, then the new Finance Minister of India, presented an emergency budget in 1991. In his speech, Mr. Singh pointed out that the new government had inherited an economy in deep crisis. The budget deficit was more than 8% of GDP and the current account deficit was 2.5% of GDP.

In the concluding part of his speech, Singh stated:“I do not minimise the difficulties that lie ahead on the long and arduous journey on which we have embarked. But as Victor Hugo once said, “No power on Earth can stop an idea whose time has come.”I suggest that the emergence of India as a major economic power in the world happens to be one such idea. Let the whole world hear it loud and clear. India is now wide awake. We shall prevail. We shall overcome.”

Those were Mr. Singh’s words in 1991. I think that we very much need positive sentiments such as these instead of some of the other messages that are coming from many quarters. 

Conclusion

When I played rugby, on one occasion our trainer talked about the attacking and defending teams. I asked what he meant by the attacking team, whether that was when the ball was on the field. He said, “No,” but had to think for a moment. He said the attacking team was the team in possession of the ball, even on its own back line. I suggest that is a message we have to send to the rest of country. We have a lot of challenges, but we also have a lot of good news.

There is a real chance we can talk ourselves into a bigger recession. Positivity is the only way forward and it is absolutely crucial to all parts of the economy at this time.  Negativity is a real hindrance and in some ways can be an excuse to do nothing.

The future is undoubtedly challenging but I believe that the downturn has provided so many opportunities for business people to improve their business.

We must grasp this moment – business need to be a bit more creative, a bit more enthusiastic and get out there and do what they need to do.

If they do, I believe they will come out the other side much, much stronger."