The Government task force established following the decision by Dell to lay off 1,900 workers has warned that unemployment in the mid-west could rise to 55,000 by the end of 2010 unless urgent action is taken.
Among the recommendations in its interim report are a call on the Government to seriously tackle costs in Ireland, to accelerate the regeneration project in Limerick, to improve the back to education allowances and schemes, and improve the potential for jobs in both the areas of alternative energy and tourism.
It says a National Cost Competitiveness strategy must be implemented as a priority with the aim of getting costs down by 20% - between 2001 and 2008 labour costs were 50% higher that the EU average.
The Government, it says, should consider barriers to employment such as social welfare policies and the minimum wage in relation to the rest of Europe.
The Government should encourage people to stay in education at times of high unemployment, and additional funds should be given to both FÁS and the VEC to facilitate this.
In this respect, it describes both the Back to Work and the Back to Education schemes as totally inadequate, and the places which can be allocated under budget funding need to be improved.
Community Enterprise schemes need to be significantly better funded to provide much needed employment and services to local communities, it says.
The force says the local authorities in the region had identified schemes which could provide employment for 800 people.
The Limerick regeneration plan should be accelerated and a commission should be established to report in six months on the governance of Limerick, to address the issue of the city and county boundary.
The Government should introduce a scheme of capital allowance to secure private sector funding for employment led schemes, it says.
It recommends that the Shannon estuary be seriously examined for its potential as a site for major alternative renewable energy projects, and there should be a reduction in the cost of all tourism projects in the region so that value for money can be restored.
In response, Tánaiste Mary Coughlan said the task force's interim findings were broad ranging and would have to be addressed by departments across Government.
She said she would immediately begin the task of consultation with her colleagues to evaluate and consider implementation of the recommendations.
