EMPLOYERS’ GROUP Ibec has sought the re-prioritisation of the National Development Plan to provide €1.7 billion this year and in 2010 in new enterprise-support programmes to maintain jobs.
It is understood that at the talks on a national economic recovery programme yesterday, Ibec proposed that this money should be generated through additional value for money achieved due to falling prices and a delay in some elements of the capital programme under the current plan.
Under the Ibec proposals, some of this funding would go towards the provision of capital infrastructure for energy generation, rather than having this cost passed on to the price paid by customers.
Ibec also says the Government should work with private-sector insurers to develop a State-backed guarantee scheme for export credit insurance. It said this would level the playing field with other countries for Irish companies that could not obtain affordable export credit insurance.
Ibec’s document says that the aim of the new business supports should be to sustain as high a level of enterprise activity and employment as possible by mitigating the adverse impact of the lack of access to finance and the crippling impact of currency movements.
“Failure by Government to implement an immediate suite of emergency support measures for those businesses affected by the recent economic, financial and exchange rate difficulties will result in a damaging and irreversible erosion of Ireland’s enterprise base,” it says.
The talks are expected to intensify over the weekend, with the question of cuts in public sector pay likely to start tomorrow. The Government has not yet put forward its proposals for saving €2 billion in spending this year. The general secretary of the Irish Congress of Trade Unions David Begg said last night the issue of pay was not on the schedule for the talks at present, but would probably be addressed over the weekend.
Speaking after the meeting, Ibec policy director Danny McCoy said serious resources were needed for the enterprise sector.
“The public finances have to be stabilised, but you can’t stabilise public finances by just cutting. You need activity to generate the revenues. It is important that the recovery plan has a stimulation part to it as well directed at enterprise to ensure that we retain as much employment as possible.”
The Irish Exporters’ Association’s chief executive John Whelan said it was extremely disappointed at the progress to date in delivering for the enterprise sector, particularly for exports. “Proposals . . . are not being treated with the urgency that they need and at this particular juncture we are making it clear to the Government that they need to fully address the issues of export industry and enterprise sector when coming out with their general statements about expenditure cuts on Tuesday,” he said.
Mr Begg said the unions had put forward proposals about adopting “the Danish model . . . which allows people hit with the shock of unemployment to retain their income for a period in return for engaging in training and upskilling”. The Association of Higher Civil Servants said while it opposed pay cuts, the freezing of increments or any diminution of pensions, the Government should introduce an early retirement/severance package that would involve the non-filling of vacancies. Minister John Gormley has said the levy on second homes was central to his party’s plans to “broaden the revenue base for local government”.
Speaking in Galway yesterday, he predicted it could raise some €80 million annually “if the collection rate is successful”.