Ictu General Secretary David Begg has described the Government’s new temporary employment subsidy scheme as showing a “poverty of ambition. “
Mr Begg was speaking on RTE radio's Morning Irelandthis morning.
The Government has said it is prepared to invest up to €1 billion in new measures aimed at protecting jobs in vulnerable companies.
The proposal for a new temporary employment subsidy scheme, under which companies could receive payments of up to €200 per employee per week, was presented last night by the Government to trade unions and employers
Mr Begg said he had hoped for a more “energetic and motivated response” to the unemployment crisis.
“I had hoped for a more fulsome, energetic, motivated response because in the next year the worst forecasts are saying that unemployment could reach up to 500,000 people. It is entitled to the same level of attention as a national crisis as the banking system has and it clearly hasn’t got that,” he said.
“What disappointed us last night is that the figure of €1 billion only came on the table after protracted discussions whereas we felt it should have been on the table up front as an indication of the government’s really serious intention to deal with this problem.”
Initially the Government stated that it would invest €250 million in the scheme but in further talks with unions late last night it said that the final amount allocated to its “jobs agenda” could reach €1 billion if the measures proved to be effective.
“If you’re dealing with a problem and you wish to elevate it to the crisis level it is entitled to be I think you just need to come up front with the money and say look we’re putting a billion aside. We’re going to deal with this head on. We’re going to tackle this in a serious way,” said Mr Begg.
“That offer (of €1 billion) should have been there from the beginning not put on the table at twelve o’ clock last night like a horse trading situation.”
Mr Begg said enormous amounts of money had been funnelled into the banking system.
“If unemployment is considered to be a crisis of equal proportions how come it is so terribly difficult to access resources to deal with that. That is the question,” he said.
“There are five separate sub crisis affecting the country, one of which is unemployment. It should be responded to with the same vigour as the banking crisis."
The Government proposals will be considered by the executive council of the Irish Congress of Trade Unions at a meeting today.
The talks come as the Government awaits publication – expected today – of a report from the International Monetary Fund on the prospects for Irish economic recovery.
Former secretary of the department of finance Dr TK Whitaker said yesterday that pay cuts or shorter earning hours were preferable to the loss of jobs in the current economic crisis.