Government role to create 'framework for job creation'

MUCH OF the language surrounding economic debate contained assumptions which bore little relationship to reality, Minister of State for Finance Martin Mansergh told the Dáil.

He said that outside of public sector employment – which grew roughly from 230,000 to 330,000 over the past decade – a number which now had to contract somewhat because it was more than could be afforded, the Government did not create or provide jobs.

“It can at best create the right framework for job creation,” Dr Mansergh said.

“We do not live in a command economy where government can summon up at will investment and jobs for places badly hit by unemployment.”

Dr Mansergh, who was speaking during the resumed debate on the Finance Bill, said that the Government could promote areas, improve infrastructure and provide retraining.

Sinn Féin’s Arthur Morgan called on the Government to introduce an economic stimulus package.

“Jobs are not going to create themselves; entrepreneurs need some assistance to get the show back on the road,” he said.

Mr Morgan said that 20 per cent of those on the lLve Register were under 25 years old, but there was no effort being made by the Government to provide them with work or further education.

He added that the €200,000 levy on tax exiles represented no more than pocket money to such people.

Labour’s Pat Rabbitte described the levy on exiles as “a gimmick” and typical of the way Fianna Fáil treated the Green Party.

“One doesn’t need to be a tax specialist to know that one could drive a coach and four through this measure as proposed,” he added.

“Given the collapse in house prices, it won’t be difficult to escape this measure.”

Mr Rabbitte said that the Bill attempted to walk a line between taking a first painful step towards the correction of the public finances, on the one hand, and squeezing the life, such as it was, out of the economy on the other hand.

“It is the harshest budget in our history and the measures being implemented by the Bill are a huge risk,”Mr Rabbitte added.

“We seem to be caught in a downward spiral where savage pay cuts and extension of VAT to public services are piled upon last year’s severe tax and levy increases without any investment strategy to deepen economic activity or retain and create jobs.”

Fine Gael’s Seymour Crawford said he wished the Bill was more worthwhile and positive.

“The Taoiseach remarked some time ago that we were over the worst, that that things were looking up and there were green shoots,” he added, “but, unfortunately, that was a bit premature.”