Opposition claims jobs strategy ‘does not stand up to scrutiny’

THE Government’s claim that a series of job creation opportunities exist that could re-ignite the economy fails completely to stand up to scrutiny, the opposition has said.

On a day when the unemployed, pensioners, public service workers and those dependent on the health service were told to take financial pain for the country’s future, Taoiseach Brian Cowen insisted the situation would not last forever.

Flanked by Finance Minister Brian Lenihan and Green Party leader John Gormley, he argued that social welfare “reform,” a drop in the minimum wage, export growth, tourism, and areas such as the green economy, could help bolster Irish finances.

Labour have said the claims ignore the reality of the situation facing the country.

However, while major cutbacks have been announced for large sections of the public service, Government has argued it is not all bad news.

According to the controversial document, one of the key employment development areas is the “fast-growing” green economy, which has “huge potential for growth”.

Among the possible moves outlined by Government are the future creation of an environmental IFSC-type area and the development of Ireland as a “test-bed location and research hub”.

A €4.5 billion investment in transmission and international interconnection renewable resources grids — previously detailed in the 2010 Finance Act — has also been put forward as a positive step.

The four-year plan also states that the “success of the IDA in attracting research and development projects” to this country in the past “will help anchor manufacturers and shift . . . Ireland further up the value chain”, while the low corporate tax environment will ensure competitiveness.

In addition, the document has argued that the retail sector will be supported by the removal of “barriers to recruitment through the reduction of the minimum wage”.

Energy and property-related cost reductions will also be implemented for the sector and the tourist industry to help ensure firms do not leave or go bust.

In the construction sector, which has been one of the areas worst-affected by the downturn, the Government has claimed the introduction of water metering and the national retrofit programme will aid job retention.

An “overhaul of bankruptcy legislation” is also being planned to help shore up struggling business owners.

The job creation comments have been criticised by Labour’s enterprise, trade and employment spokesperson Willie Penrose, who said they bore no connection to reality.

“What’s wrong with this is there is no comprehensive and well-thought out job strategy, it’s just words like smart economy and green economy and the rest is only aspirational.

“This document is conspicuously light on details when it comes to work. I’m chair of the Joint Oireachtas Committee for this issue, and I can tell you this — it does not stand up to scrutiny,” he said.