De Rossa criticises proposals to reduce unemployment

The Government has moved to play down the public disagreement between Democratic Left and Fine Gael Ministers on plans to reduce…

The Government has moved to play down the public disagreement between Democratic Left and Fine Gael Ministers on plans to reduce unemployment in the run up to the Budget.

The leader of Democratic Left and Minister for Social Welfare, Mr De Rossa, caused surprise in political circles yesterday with his sharp criticism of proposals by the Minister for Enterprise and Employment, Mr Bruton.

Mr De Rossa described the proposal in Mr Bruton's unemployment package to reduce employers PRSI to British levels as "the kind of sound bite economics we expect from the PDs".

The Progressive Democrats yesterday unveiled their proposals on reform of taxation, which so included reducing employers' PRSI.

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Mr De Rossa, in an RTE interview, also criticised Mr Bruton's proposal to reduce unemployment benefit to 18 and 19 year olds to encourage them to seek employment or remain in education.

"This is not a runner as far as I am concerned," he said. Cutting people's social welfare "is not the answer" to the unemployment problem of young people.

The proposal was also criticised by the Irish National Organisation for the Unemployed, the National Youth Council and Focus Point, the organisation for the homeless.

Mr Bruton refused to comment yesterday on the criticism, saying it was "a matter for Government".

Mr De Rossa denied there was "a split in the Cabinet" on the Coalition's various plans to reduce unemployment. He said the plan produced by the department of Enterprise and Employment was "a good document, but there are aspects with which I disagree." These disagreements would have to be discussed before the Budget on January 23rd.

A Government spokesman said the Cabinet had decided to send the four different plans to tackle unemployment, especially long term, to a special sub committee consisting of the three party leaders as well as the Minister for Finance, Mr Quinn the Minister for Enterprise and Employment and the Minister of State for Public Expenditure, Mr Hugh Coveney.

The Taoiseach has arranged, for an "intensive" round of meetings starting immediately to try to resolve the differences and produce "an integrated package" on unemployment for the Budget.

The labour backbench TD, Ms Roisin Shortall, also criticised the proposal to reduce benefits those aged 18 and 19. She said that while initiatives to tackle youth unemployment were welcome, "to suggest people can be forced into employment or education by cutting their incomes illustrates a lack of understanding of the poverty in which many young people live."

The Fianna Fail spokesman on education, Mr Micheal Martin, described the proposal as "bizarre and unacceptable".

The chairman of the Labour Party, Mr Jim Kemmy, was also critical of aspects of Mr Bruton's proposals. Reducing employers' PRSI to British levels was going to cost up to £60 million and those who made such proposals had to say how they were to be financed.