Tuesday, February 14, 2012
The Government’s jobs plan has been criticised by both employer and employee representatives for its failure to tackle the lack of consumer confidence and domestic demand.
Employers’ body IBEC said the action plan did offer a number of practical measures that would help business to create jobs.
In particular it pointed to the improved access to credit for small and medium sized enterprises and the commitment to improve competitiveness and make the country a more attractive location for key sectors.
"However, the primary cause of unemployment is the lack of consumer confidence and domestic demand in the economy," said IBEC director general Danny McCoy. "There is little in the jobs plans to address this problem. New thinking and greater ambition from both the Government and troika will be required in the coming months and years."
Mr McCoy said IBEC had already briefed Government on a number of "innovative and revenue-neutral measures" designed to support domestic demand.
"These include allowing people to release a portion of AVC and personal pension contributions and increased investment in physical and human capital," he said. "The case for investing in strategic infrastructure, through either pension funds, proceeds from the sale of state assets, or in partnership with the private sector, remains compelling. There should be no further taxes or charges on employment, as this would only damage growth."
The Irish Congress of Trade Unions said the plan did show a desire to place jobs at the heart of Government policy.
However, ICTU general secretary David Begg said a failure to address the collapse in domestic demand means jobs will continue to be lost.
"At least two more austerity budgets will shrink the economy to four-fifths its size before the crisis. A contraction of this size means jobs will continue to haemorrhage and emigration increase unless the demand deficit is addressed," he said.
"ICTU has already submitted detailed proposals to Government on how we can secure investment, create jobs and stimulate demand, through incentivising private pension funds and with the help of the European Investment Bank."
Mr Begg also expressed concern that the plan appeared to contain no proposals to counteract long-term unemployment:
"Making the social welfare regime tougher will not create employment opportunities, nor will cutting wages serve as an incentive to work."
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