IBEC - Newsroom

IBEC, the group that represents Irish business, today said that while immediate and major cuts in public expenditure were necessary, the government must also take decisive action to support employment and get the economy going. IBEC said that the absence of such a move would prolong the crisis and add to long-term unemployment.

In a letter to the Taoiseach, sent in advance of talks this evening, IBEC said it was very concerned at the lack of action by Government to preserve and create much needed employment. It said that while, understandably, short-term funding concerns preoccupied Government in the early part of 2009, now was the time for a substantive jobs stimulus package. This could be done within current budgetary constraints.

IBEC Director General Danny McCoy said: "The jobs crisis is threatening Ireland’s social and economic fabric. Too many jobs have been lost and too many viable businesses are struggling to survive. Right across Europe governments have taken steps to protect jobs, in what is the most severe recession in recent times. The Irish government must do the same.

In the letter, IBEC said that Government should use the money it is already spending, largely through social welfare, where this interacts with the labour market, to protect those in vulnerable employment and to help support new employment. IBEC called for the Enterprise Stabilisation Fund and Employment Subsidy Scheme to be broadened and better resourced, the urgent introduction of a Government-backed export credit insurance scheme and measures to alleviate pressure on exporters to the sterling area.

"Business has a preference for tackling the jobs crisis through a partnership approach, but this must focus on supporting employment, reducing costs and improving competitiveness. Pay increases in 2010 are unrealistic and so a formal suspension of the pay terms of last year’s national agreement is needed as a matter of urgency. If consensus cannot be reached, business will take its own decision on how best to proceed in the absence of an agreement," concluded Mr McCoy.