Economy in danger of total collapse, says ISME

ISME, the Irish Small & Medium Enterprises Association, has warned that the economy is in real danger of total collapse.

This was confirmed by the latest unemployment figures, according to the group, unless the Government produces and implements a coherent and comprehensive economic plan.

The Quarterly National Household Survey, the official recording of the labour force, confirmed that there are now 171,000 people unemployed, an increase of 10,000 on the previous quarter and a 70,000 increase in a year.

The extent of the problem can be gauged from the fact that a massive 79% of this unemployment occurred in the latter half of 2008.

Other trends, including the live register, redundancy figures and ISME surveys, confirm that the problem has escalated since then and is far worse than Government predictions.

ISME chief executive Mark Fielding laid much of the blame at the door of the Government, who he accused of being so bereft of ideas that it is fuelling persistent uncertainty, landing us in the current predicament.

“Over 12 months ago, the ISME warned of these figures and requested a rapid Government response. One of the most frightening aspects of the current debacle is that, even today, no one at Government level seems to realise that we are in crisis.

“The ‘do nothing’ approach is causing irreparable damage, which will take generations to resolve unless immediate action is taken,” he continued.

ISME reiterated its call for an employers’ PRSI holiday for all new jobs created for a minimum of one year, in addition to the introduction of a reduced rate of 5% for employers’ PRSI for salaries up to the average industrial wage of €34,000.

“This alone would help staunch the haemorrhaging of jobs currently being experienced throughout the economy,” he added.

In conclusion, Mr Fielding said: “The country needs and deserves a comprehensive economic plan to get us out of the current predicament. The country needs and deserves a Government to introduce and implement such a plan. The absence of the former would indicate a need to change the latter.”

Article courtesy of the Evening Echo newspaper.