SIPTU: Revised bailout terms mean nothing without budget revision
SIPTU president Jack O’Connor said the Government must use the opportunity offered by the revised deal to promote economic growth and jobs.
Mr O’Connor pointed out that the deal would “mean nothing” if the Government continues with the projected €3.6 billion deficit reduction in the upcoming budget without “offsetting measures”.
“The announcement is good enough, as far as it goes, although it would be better if the facility to buy back debt at discounted rates were extended to Ireland. We are approaching the tipping point of no return, if we are not already over the brink, with cutbacks over the past three years on a scale unprecedented in any developed economy.
“The revised terms offer the opportunity of scaling down the measures projected for Budget 2012,” he said.
The SIPTU president reiterated his call on the Finance Minister to get agreement from private pension funds to invest 5% of their assets, some €4bn, in job generation projects and enterprise in Ireland, on the basis of exemptions from the recently announced pensions levy.
“Together with investing the residue of the National Pension Reserve Fund, that is €5bn, this would generate upwards of 80,000 jobs. The Government must grasp the opportunity to reverse the downward direction of things, instilling hope in our people — otherwise yesterday’s announcement will ultimately serve only to exacerbate frustration and despair,” he said.
Meanwhile, IBEC, which represents Irish business, welcomed the revised package agreed for Ireland.
Commenting on the agreement, IBEC director general Danny McCoy said such “decisive steps” by eurozone leaders would prevent the sovereign debt crisis from escalating further. “They have shown that they will do whatever it takes to safeguard the euro. This is good news for Ireland,” he said.
“The reduction in the interest rate and the extension of the loan maturities will help debt sustainability and ease the burden of adjustment over time.”
“Ireland can now proceed implementing the agreement as planned. It is welcome that the agreement puts a stop once and for all on any speculation on Ireland’s corporate tax rate.
“Corporate tax is and remains a matter for individual countries,” he said.
On the commitment by Ireland to engage in the Commission’s Common Consolidated Corporate Tax Base (CCCTB) proposals, Mr McCoy said it was unlikely that CCCTB will ever see the light of day. “CCCTB will not reduce the cost of doing business in the EU and individual members states considering the commission’s proposals are beginning to realise this,” he said. “It is unlikely that CCCTB will ever see the light of day.”
