IBEC - Newsroom

IBEC, the group that represents Irish business, today welcomed the move by government to bring forward new measures this month to address the crisis in the public finances and set out a range of measures that it felt was necessary.

IBEC Director General Turlough O'Sullivan said: "It is good news that the government has said it will take action by the end of the month. IBEC has been advocating the urgent need for a national recovery plan based on three key principles; restoring order to banking, making a significant beginning to getting the public finances back in balance and putting supports in place to help enterprise protect the maximum number of jobs.

"While positive moves have been made by government to manage the banking crisis, it is increasingly clear that the pension levy will not make the hoped for substantial contribution to addressing the deteriorating position in the public finances. In addition, no measures have been taken to address the cost and competitiveness pressures endured by business and exporters to the sterling area in particular. In the meantime, jobs continue to be lost at an alarming rate."

IBEC said it was positively disposed to engagement with government and others, including ICTU and the main opposition parties, to address the economic crisis in a decisive, fair and equitable manner. This should be done immediately.

IBEC highlighted a range of measures needed address the current situation. These are:

• An early Mini Budget to address deficit in public finances. Further spending cuts are needed and all income earners should pay their fair share of tax.
• Innovative supports for enterprise and job retention by diverting funds from the NDP.
• Indefinite deferral of increases under NWA. All pay levels must reflect the new reality in the economy.
• Industrial peace agreement for the next three years.
• Freeze on all public charges/costs, local authority rates, energy etc.
• Reduce costs and numbers of Ministers of State, Dáil Committees and abolish the Senate.
• Promotion by Business and government of better governance and oversight.
• Disposal of non-essential state assets.
• Introduction of means testing for welfare benefits. The economy cannot afford universality.
• Provide targeted support for retraining.
• Support to the maximum extent possible front-line services in hospitals, education etc.
• Modernise public sector including pay, numbers, work practices and pensions.
• Prompt payment by public service within 10 days of invoicing for contracts with suppliers.
• Support private sector pensions with State Annuity and easing of burden of Funding Standard.
• Moratorium on new regulation.
• Leniency by lending institutions with mortgage arrears.