The Government is “paralysed” and unable to lead the country out of the current economic crisis, according Fine Gael deputy leader Richard Bruton.
Mr Bruton claimed people’s confidence was “being sapped” because the Government had no strategy to deal with the rising level of unemployment.
He was speaking in the Dáil as the latest Live Register figures showed a record 388,600 people signed on for jobseekers' benefit in April, bringing the unemployment rate to 11.4 per cent.
Mr Bruton said the figures showed unemployment had risen 94,000 since the start of the year, on top of 120,000 rise in 2008.
“Behind the statistics, businesses are seeing their life’s work destroyed and families are terrified that their jobs will be next to go,” he said.
But Taoiseach Brian Cowen said the Government had a clear strategy that had been outlined in the Budget.
Mr Cowen said: “Our jobs strategy involves getting the public finances in order". He also claimed that a reduction in wage costs was improving competitiveness in the economy.
He said the Government was taking the action in the short term that would return economy to growth in the medium term.
Mr Cowen said he was acutely aware that people were losing their jobs but "unless this action is taken the prospects for growth will not reappear in this economy".
"We have set our position in our Budget and have indicated where the tax and expenditure cuts will be made next year and the year after," he said.
Labour leader Eamon Gilmore claimed the Government was in "absolute denial" about the state of the economy
"More and more people are losing their jobs and businesses are going to the wall while the Government is stuck like the proverbial rabbit in the headlights and unable to act," Mr Gilmore said
"The key to solving our economic difficulty is protecting jobs and getting people back to work," he said.
