Real figures show net loss of 9,000 jobs and lost opportunity to support 30,000 more

Fine Gael Communications & Energy Spokesman, Leo Varadkar TD, has described as ‘complete codology’ Government claims that the new capital programme announced yesterday would create 270,000 jobs.

“This year, the Government will spend €6.5 billion on capital projects supporting about 75,000 jobs mainly in the construction sector. According to the Revised Capital Investment Plan, €5.5 billion will be spent in 2011 supporting 66,000 jobs. That’s a net loss of 9,000 jobs.

“I have studied the Revised Capital Investment Plan in detail. The Government’s claim that it will create 270,000 jobs is based on the proposition that 12 jobs are created for every €1 million spent on infrastructure. That figure is valid. However, what they neglect to mention is that these are not additional jobs. These are jobs that will replace jobs lost on other capital projects that have been completed.

“The Government is trying to pass off a cut in the capital programme and a net loss of 9,000 jobs per annum as a boost for employment or some sort of ‘stimulus’ plan. This is ‘complete codology’.

“People working on the Dunboyne rail line this year will be working on the Metro or the Dublin inter-connector next year. People building new schools in one parish this year will be building a new school in another parish next and people who are working on the National Convention Centre now will be working on the new DIT campus next year. But overall there will be fewer of them.

“The National Development Plan (NDP) has been scaled down by 45% but construction costs have fallen by only 30%. Overall this represents a cut of €13 billion over five years. It would have been possible to sustain 30,000 more jobs every year between now and 2016 had spending only been cut by 30% in line with the fall in tender prices and not by 45%.

‘”There is an alternative. At the heart of Fine Gael’s NewERA plan is the idea that billions of additional capital investment can be driven through State enterprises. This borrowing will be off-balance sheet and will not add to our national debt. For example, in the Revised Capital Investment Plan the Government proposes to invest €3.4 billion in water infrastructure in the next five years. If we moved all water services out of local authorities and into a new semi-State called Irish Water, this borrowing could be done off-balance sheet and could be serviced using the proceeds of water charges levied on business and in future revenue from domestic water metering. This would free up another €3.4 billion that could be used to build the schools, hospital and rail lines cut from the NDP. Similarly, the proceeds of the sale of some State assets, like Bord Gais Energy (BGE), as proposed by Fine Gael could raise billions more which could in turn be invested through other semi-States to upgrade the electricity grid, green energy projects and broadband.

“I also note that all of the major infrastructural projects that had been planned for my constituency of Dublin West will not now proceed. These include the new prison at Thornton Hall and Metro West. This will come as a disappointment to the local community though I accept that other rail projects like Metro North and the DART underground make more sense economically and that these should proceed first.”

The Fine Gael Communications Spokesman said: ‘It’s a pity the Government did not act when Fine Gael published NewERA 15 months ago, instead of waiting until the live register had almost doubled’.

“When we publish a policy, it’s rubbished by the Government. Then months or years later they realise Fine Gael was right, and they bring it in as their own policy and try to take the credit.

“It happened this week with the Government’s Home Defence Bill, a cause Fine Gael has been championing for years.

“And the Government has also ripped off our policies on benchmarking, the PRSI holiday for new jobs, the windfall tax on power generators, culling useless State quangos and reining in wasteful State spending.

“It’s happening again with the Review Group on State Assets announced by the Government this week. This audit of State assets is strikingly similar to NewERA, Fine Gael’s plan to overhaul Ireland’s infrastructure.

“Fine Gael launched NewERA 15 months ago. Our plan would have created more than 100,000 jobs in the short and medium term. Many of those new jobs would now be in place if NewERA had been adopted as Government policy at the time.

“Obviously I welcome the fact that the Government is now implementing NewERA, even if they have given it a different name.

“That’s why Fine Gael is offering to advise the Review Group. Since this is Fine Gael policy in all but name, we think it’s only right that Fine Gael brings the Government up to speed.”

A Jobless Recovery is not a Real Recovery

Speaking in the Dáil on Fine Gael’s Private Members’ Motion on the economy this evening (Wednesday), Party Communications Spokesman, Leo Varadkar TD, said, that as seen in the 1980s, a jobless recovery is not a real recovery and that semi-State companies must be re-tooled into engines for economic growth.

Making his speech, Deputy Varadkar said:

“Cathaoirleach, I rise to speak in favour of the Fine Gael Motion tonight. First of all, please allow me to thank Deputy Noonan for his Motion and for allowing us to debate the economy before the Dáil rises for the summer recess.

“Last week, Ireland officially came out of recession recording positive GDP growth in the first quarter of 2010. However, this is merely a statistical recovery and a statistical recovery is no good to the Irish people. For real people, the recession will only be over when unemployment falls and incomes begin to rise again. This could be a long way off. Members of this House who were here during the last recession will recall that the recession of the 1980s ended in 1983. However, the public finances were not stabilised until 1987 and there were no jobs until the 1990s. I am concerned that history is repeating itself and that we are facing into a prolonged period of jobless, anaemic economic growth, a period of stagnation or another lost decade.

“This will come to pass if the Government fails to implement polices that will stimulate economic activity and job creation. Ireland’s economic crisis has three parts:

1. A fiscal or budgetary crisis,
2. A banking crisis; and
3. A jobs crisis.

“So far, leaving aside the fact that they caused it in the first place, the Government has done a relatively good job when it comes to the fiscal crisis. Tough decisions have been taken on public spending and on taxation which were largely supported by this Party. The Government must stick to this course. To date the Government has relied more on tax increases than savings in government spending. The onus must now shift towards reduced government spending rather than higher taxes on work and business. Higher income taxes, higher VAT and excise and new taxes on business will ruin the recovery.

“When it comes to the banking crisis, they have made a mess. The Government’s efforts to save the banks from collapse have cost billions but they have not worked. Recapitalisation, nationalisation and NAMA will cost us more than €30 billion yet we still do not have a functioning banking system and small businesses are being starved of the working capital they need to enable their businesses to survive and grow.

“However, the biggest failure has been the absence of a jobs policy. Measures that have been implemented by the Government to save or create jobs have been piecemeal, limited in scale and late in the day. The scale and speed of the response to jobs crisis is a disgrace when compared to the speed of the Government’s response to banking crisis and the scale of their response to the budget crisis.

“Ireland’s economic competitiveness continues to decline despite reductions in labour costs. Dozens of reports and strategies have been produced but the Government has yet to produce, publish or implement a comprehensive plan to restore our competitiveness.

“NewEra is one of Fine Gael’s proposals to restore competitiveness and create jobs. At the centre of the NewEra plan is a big idea. The big idea is to re-tool the semi-States, which for years have been a drag on the economy and to transform them into engines for growth and job creation.

“Ireland’s economy is no longer competitive. A decade of Fianna Fáil misrule destroyed that. To create jobs and improve people’s lives and incomes, our economy must become competitive again. That requires three things; reducing our costs, improving our infrastructure and reforming our public service. To improve our infrastructure, we must invest billions in broadband, green energy, water services, road and railways. Some of the money can come from the sale of state assets we do not need anymore. More can come from the National Pension Fund which should be investing in commercial projects here in Ireland rather than buildings in Tokyo and stocks in Thailand. Even more can come from pension funds, hedge funds, sovereign wealth funds and private investors who want to invest in State-backed and private sector utilities. With this money, we can do in a few years what the Government plans to do in twenty-five thus creating tens of thousands of jobs and a platform for sustained growth.

“All we need is a government willing to do it.”

According to the latest statistics from the CSO, there are now 8,565 people signing on the Live Register at the Blanchardstown Social Welfare Office. This represents an increase of 460 people over the past month. However, the starkness of this figure is all the worse when it is compared to the June 2007. Since then the numbers signing on has increased by 4,938 from 3,627– a staggering increase of 136%.

Local Dublin 15 TD and Fine Gael Spokesperson on Communications, Energy and Natural Resources Leo Varadkar TD said “These figures demonstrate how this national catastrophe is hitting home at the local level. Unfortunately, there is no action from the government to tackle the unemployment crisis.”

“The government can talk their way around all the statistics in the world and pretend things are on the mend, but the simple fact is that until the dole queues stop increasing, and being to fall dramatically, this recovery talk from is just nonsense. Each and every one of the 8,565 signing on in Dublin 15 would be able to tell you this.”

“The government would do well to remember the 1980s, when a recession ended in 1983, but the public finances were not stabilised until 1987, and there was no jobs growth until 1990. The Government is leading us into another lost decade of stagnation due to its failure to implement a jobs plan.

“Unlike the Government or any other political party, Fine Gael has a costed and comprehensive jobs plan. We have demanded no further cuts in capital spending or investment, and no further tax increases, which would only destroy a recovery.”

Speaking after the live register rose to another record high, Fine Gael Enterprise Spokesman Leo Varadkar TD warned that Fianna Fáil and the Greens are leading Ireland into a lost decade of stagnation.

“Ireland is not working. Almost 15,000 people joined the live register in the last month. That means 3,750 people lost their job every week, or roughly one every two and a half minutes.

“I am amazed that no-one in Government has yet realised that a recovery without jobs is no recovery at all. In the real world, a recovery is about having a job to go to and enough money in your pocket.

“The Government has fallen into the trap of believing that a jobless recovery is good news for the economy. But a small increase in national output is no good to anyone if it doesn’t make any inroads into Ireland’s massive unemployment levels.

“Fianna Fáil and the Greens would do well to remember the 1980s, when a recession ended in 1983, but the public finances were not stabilised until 1987, and there was no jobs growth until 1990. The Government is leading us into another lost decade of stagnation due to its failure to implement a jobs plan.

“Unlike the Government or any other political party, Fine Gael has a costed and comprehensive jobs plan. We have demanded no further cuts in capital spending or investment, and no further tax increases, which would only destroy a recovery.”

Attacking Radical FG Jobs Plans No Substitute for Absence of Jobs Strategy from FF/Green Govt

The continued attacks from Government sources on Fine Gael’s radical NewERA jobs plan, while undoubtedly satisfying some of the political appetites within Fianna Fáil, is no substitute for the absence of a jobs plan from the Government which has resulted in almost 439,100 people being on the Live Register, according to Fine Gael’s Enterprise Spokesman, Leo Varadkar TD.

“The Government’s attacks on Fine Gael’s radical jobs plan would be laughable if their own non-existent jobs strategy wasn’t so damaging for the 439,100 people now signing on. While these attacks may distract some people from the Government’s own dismal failures, Fine Gael is determined to see our plans to overhaul our economy implemented as quickly as possible. The hundreds of people that have attended each of our NewERA meetings in Roscrea, Naas and Dundalk all recognise the new opportunities NewERA brings and want to see it become a reality.

“I understand why the Government doesn’t want to talk about its own jobs record but the hundreds of thousands of people whose lives they have destroyed deserve some hope and some sense of a Government with a vision for the future. Fine Gael has that vision for a modern, competitive and green economy.

“We know that major finance houses like Davy’s and NCB are looking to invest in projects like NewERA and the European Investment Bank has told us that these are exactly the types of investments that they are interested in. The Construction Industry Federation has run the rule over our jobs predictions and notable economic commentators like Eddie Hobbs and David McWilliams recognise the merit of our plans. Indeed, two key think-tanks have also endorsed the thinking that underlines NewERA. John FitzGerald of the ESRI has called for the creation of a single Irish water utility, while economic and social think-tank Tasc has endorsed the concept of using State-owned enterprise to borrow to build infrastructure to stimulate the economy.

“The Government’s attack is not surprising though when one remembers that Fianna Fáil and the Greens both welcomed the NewERA infrastructure and jobs plan when it was launched. Finance Minister Brian Lenihan and Chief Whip Pat Carey both welcomed the NewERA plan. In a statement, Minister Lenihan acknowledged the ‘welcome level of constructive engagement by Fine Gael’, comments echoed by Minister Carey who spoke on behalf of the Government as Chief Whip.

“The idea behind our plan is consistent since we launched in spring 2009. The only thing that has changed since those broad words of welcome is the political need to attack Fine Gael as more and more communities hear more about our plans and recognise the difference in approach between a failed Government and an Opposition with bold new ideas to get our people back to work.”

Fine Gael spokesperson for Enterprise, Trade and Employment and representative for Dublin West, Leo Varadkar has called on the IDA to do more to avert the planned 310 redundancies at IBM’s Mulhuddart facility and has called on the company (IBM) to improve on the redundancy offer being made to staff.

 
“IBM continues to employ over 3,000 people in Ireland but last month’s news that 310 jobs would be lost to Singapore and other locations came a great disappointment to us all.
 

“IBM staff benefit neither from the representation of a trade union or an employee association and are unable to speak with one voice to press their case. I have met with and spoken to a number of affected staff members in recent weeks. They are all very unhappy at the five weeks per year of service redundancy package being offer by IBM and I support them.
 

“This offer pales in comparison to other seen recently as it is substantially less that is being offered by loss-making Aer Lingus and the administrators of Quinn Insurance. IBM is a highly profitable company which recorded profits of over $20 billion in 2009. It has received millions in grants from the Irish Government and benefits from our 12.5% corporation profit tax rate. IBM also describes itself as one of Ireland ‘leading corporate citizens’. It can and should make a better offer to its staff.
 
“I have already been in contact with the Managing Director of IBM Ireland to express my view and have also written to Barry O’Leary, the Chief Executive of IDA Ireland to ask them inform me of the actions that the Agency is taking to save these jobs or find an alternative employer to take on the manufacturing facility earmarked for closure.”

“I know Minister O’Keeffe is still fresh in the job, but with 785 job losses announced at Pfizer and 430,000 people signing on, you would hope he would be familiar with the Government’s own groups on unemployment.

“So I was surprised to hear Minister O’Keeffe lost for words when challenged on the status of the Cabinet Committee on Economic Renewal, and the High Level Group on Labour Market Issues.

“His response was: ‘I’m not certain, there’s no point in my saying that I know it exists’.

“In the sprit of co-operation, I am happy to brief Minister O‘Keeffe on the status of both groups. The Cabinet Committee still exists, but the High Level Taskforce has been mothballed, in spite of Ireland’s soaring unemployment rate.

“If the Minister would like to call me I will be happy to further clarify this matter for him.”

Fine Gael Enterprise, Trade & Employment Spokesman Leo Varadkar TD has described the loss of 785 high-value jobs at Pfizer as ‘a meltdown in the multinational sector’.

“This is a terrible day for Ireland and its multinational sector. Ireland is taking a much bigger hit than other countries, with three of the eight sites that are being ‘exited’ located in this country. Some 785 of the 6,000 jobs being lost are based in Ireland.

“Pfizer is also shedding jobs in the US, UK, Germany and Puerto Rico. However France, Sweden, Spain and Australia are not affected.

“The scale of the lay-offs in Ireland alone should send a clear signal to Government that it cannot afford to ignore Fine Gael’s warnings about Ireland’s lack of competitiveness any longer.

“Fine Gael is calling on the Government to immediately adopt our plans for a National Competitiveness Action Plan to improve infrastructure and reduce the cost of doing business, which would include the following elements:

 

• A reduction in all Government and local authority charges of roughly 5%;

 

• A reduction of Government regulated prices like telecoms and energy;

 

• A PRSI waiver for new jobs;

 

• The implementation of Fine Gael’s NewERA plan to improve energy and telecoms infrastructure across the State;

 

• No further reduction in the capital budget; and the

 

• Introduction of emergency measures to save jobs and retrain the unemployed such as work-sharing, internships and second chance education.

 

With new CSO figures showing that retail sales outside the motor trade are still falling, Fine Gael Enterprise Spokesman Leo Varadkar TD has warned that more businesses will close and more jobs will be lost unless the Government develops a national jobs and competitiveness strategy.

“The CSO figures are good news for the motor trade, but terrible news for every other retailer. If you strip out the motor trade, it’s obvious the retail sector as a whole is still struggling to survive. The volume of non-motor retail sales last February was 3.1% lower than February 2009, and the value of retail sales was down 7.4%. Overall, retail sales are now lower than they were in 2005 but the cost of doing business is still much higher.

“Hundreds of retailers have been forced out of business and thousands of jobs have been lost since the start of the recession. Retail Ireland is warning that 40% of retailers expect to lay off staff, with more than half of retailers experiencing serious problems in the recession. Some 14% of retailers have predicted compulsory redundancies within three months.

“It’s time the Government set up a national jobs and competitiveness strategy.

“Fine Gael has done the hard work and put together a comprehensive set of job-creation and protection proposals, four of which could be implemented immediately. It’s time the Government took notice:

• Cut the jobs tax (employers’ PRSI);
• Reduce rents by abolishing ‘upward only’ rent reviews and establishing a register of rental agreements;
• Totally overhaul the JLC wage-fixing system;
• Cut Government costs by 5% and reduce utility bills, as set out in Fine Gael’s new Financial Emergency Measures in the Public Interest Bill 2010.