IBEC WANTS GOVERNMENT JOBS INITIATIVE TO INCENTIVISE WORK - This morning the employers organisation, IBEC, has come out with its submission ahead of the Government's forthcoming jobs initiative. The submission has lots of elements in it - from cutting the bankruptcy period to live cattle exports, but a good chunk of it concentrates on incentivising work.
IBEC's director of policy Brendan Butler says there is a disconnect between the state employment services and the social welfare payment system. He says work has to be worthwhile, but employers are in competition with the state benefits system for people who are long-term unemployed and in receipt of full benefits. Mr Butler says Ireland is unique in Europe in that those on long term benefits receive the same amount of money as those who have just lost their jobs. He says that Ireland needs to move into line with competitor countries where the support system tapers off after a period of time. He stated, however, that he does not believe there was a case for cutting social welfare rates.
Mr Butler says that those who have lost their jobs should be able to avail of a one-stop shop where their skills' needs can be quickly assessed and they can be helped back into work as quickly as possible. He says there are currently vacancies in the software sector which could be filled by those with a high level of education availing of conversion courses run by third level colleges. He says that IBEC members continually report that they are having difficulty filling employment vacancies due to applicants stating that their welfare benefits are worth more than the salaries on offer. IBEC's analysis shows that for an individual with a dependent partner and two children there is no financial incentive to work for a gross salary of less than about €35,000.
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MORNING BRIEFS - Independent News and Media chief executive Gavin O'Reilly saw his pay increase last year. According to the company's annual report - published this morning - he earned just over €1m in 2010 compared to €877,000 the previous year. Chief financial officer Donal Buggy saw his total pay fall from €903,000 in 2009 to €647,000 last year.
*** Good news this morning on the manufacturing side - which of course is directed towards the exporting side of the economy. The NCB Purchasing Managers Index finds that the pace of growth in manufacturing activity rose slightly in April to its second highest level in 11 years thanks to export growth. The index rose to 56 in April from 55.7 in March, staying above the 50 mark separating growth from contraction for the seventh month.
*** Sony announced yet another hacking attack that involved details of up to 25 million users of its Sony Online Entertainment Network. The attack pre-dated the hacking of the details of 77 million users of its Play station network. That could potentially be good news for Microsoft and its XBox which stands to benefit if online gaming enthusiasts decide its time to switch allegiance.
*** On the currency markets, the euro is worth $1.4833 US cents and 89.20 sterling.
