skip to main content

Mixed response to jobs initiative plan

Measures to boost tourism welcomed by Fáilte Ireland
Measures to boost tourism welcomed by Fáilte Ireland

The Government's jobs initiative got a mixed response from special interest groups and unions.

Fáilte Ireland gave the measures designed to boost tourism a warm welcome.

Fáilte Ireland CEO Shaun Quinn said: 'This timely and significant initiative should provide a much needed stimulus to the fortunes of tourism businesses around the country.'

The Irish Small & Medium Enterprises Association welcomed the initiative, but warned that what was urgently needed was 'a comprehensive economic plan which addressed the Government deficit, the total cost base and the banking crisis'.

Business group IBEC welcomed what it called 'the decisive way in which the Government has moved to support the jobs market', but said 'the decision to fund the move through a levy on pension funds will have serious consequences for defined benefit pension schemes, many of which are already in significant deficit.'

Chambers Ireland said the initiative contained many progressive ideas for supporting economic recovery.

'Whilst the Government themselves cannot create jobs, they can create the right conditions for business to create and sustain employment,' said Chambers Ireland chief executive Ian Talbot.

The Construction Industry Federation gave particular welcome to what it called 'measures relating to the acceleration of shovel ready construction projects and the expansion of energy retrofitting schemes'.

'The measures announced today will help support jobs in construction but only where promised infrastructure projects are brought forward without delay and existing commitments under the Public Capital Investment Programme are delivered in full this year,' said CIF director general Tom Parlon.

The Irish Hotels Federation praised the initiative, saying: 'today's announcement is one of most comprehensive policy initiatives supporting the tourism industry in the last decade.'

ICTU: initiative a 'promising first step'

The Irish Congress of Trade Unions called the jobs initiative a 'promising first step'.

'This has to be seen as a beginning - the opening shot in a coherent, concerted drive to create jobs and get people back to work,' said ICTU assistant general secretary Sally Anne Kinahan.

'Government must adopt a fairer approach to recovery and become more ambitious for Ireland and more ambitious for people if we are to create a genuine recovery.'

The Teachers' Union of Ireland called the initiative a 'lost opportunity' and said it did not go far enough.

TUI general secretary Peter MacMenamin said: 'Overall, a greater increase in PLC (post-leaving certificate) place provision could have been considerably offset by money no longer payable in social welfare to potential students, so the commitments announced today do not go far enough and demand will far outstrip supply yet again.'

Airline Ryanair welcomed the reduction of the travel tax to zero, saying in a statement: 'This tax has been a significant barrier to tourism growth in Ireland and Ryanair welcomes the Minster's decision to scrap it.'

Pension fund levy sharply criticised

However, the Irish Creamery Milk Suppliers organisation strongly criticised the pension fund levy contained in the jobs initiative.

ICMSA president Jackie Cahill said that when all the verbiage was stripped away the levy is nothing less than an unjust attack on private property and was, in addition, probably unconstitutional.

'The sheer arrogance of the best-paid and best-pensioned politicians and civil servants in the world to even propose such a levy is astounding.'

The pension fund levy was also criticised by the Irish Insurance Federation, whose CEO Mike Kemp said: 'Pensions are no longer a tax-shelter for higher earners, so this levy does not penalise those that are well off, but ordinary middle income earners.'

The Professional Insurance Brokers Association called for clarity on the Government's plans for pension tax relief.

Diarmuid Kelly, PIBA chief executive said: 'It is imperative that that the current 41% rate of pension tax relief is maintained to ensure that there is some incentive left for middle income earners in particular to contribute towards pension.

'If standardisation at either 33% or 20% were to follow the introduction of the levy announced today it would be catastrophic.'

Social Justice Ireland called the initiative 'far too small to make any impact of substance on Ireland's record level of long-term unemployment'.

'The proposals contained within the jobs initiative are welcome as far as they go, but there will be no major reduction in the numbers long-term unemployed for the foreseeable future without far more radical action being taken aimed directly at reducing the numbers long-term unemployed,' said Fr Seán Healy, director of Social Justice Ireland.

The Union of Students in Ireland welcomed the creation of 5,000 internships, but warned that the promise of '€50 per week' might not be enough to keep graduates from emigrating.