A report published on Tuesday has revealed the Republic of Ireland's Government ignored "clear warnings" on the economic situation.

The report, named Strengthening the Capacity of the Department of Finance, analysed the department's advice and awareness in the run up to Ireland's financial meltdown and how the advice was handled by the Government.

The report said it had found "three key reasons" for the failure of fiscal policy I Ireland.

"First, there were extraordinary expectations of Government in Ireland to create spending and tax initiatives to share the fruits of recent economic gains.

"Second, the Government's Budget process was completely overwhelmed by Programmes for Government and the Social Partnership process.

"Third, the Department of Finance should have done more to avoid the outcome."

The report also found the Department of Finance was "poorly structured in a number of areas", including at the senior management level; did not have sufficient engagement with the broader economic community; and has too many generalists in positions requiring technical economic and other skills.

The former Minister for Finance, Brian Lenihan, welcomed the report saying it provided a "very fair and thoughtful assessment" of the Department’s performance over the past ten years.

"While a number of recommendations are matters for the new Government and require further consideration, a significant number relate to organisation, skills set and work practices – many of which are being implemented without delay.

"The implementation of these proposals will assist the Department in taking on the complex challenges arising in the coming years. I have no doubt but that the Department will address the issues highlighted in the report with vigour and enthusiasm."

Mr Leniham said the Report had been published at this time to allow the incoming Government to consider the Report’s recommendations and then make its decision on which policies to implement:

(DW)