Ibec welcomes Government action to manage finances

EMPLOYERS:EMPLOYERS' body Ibec last night welcomed the Government's new economic plan.

Director general of the organisation Turlough O’Sullivan said the pensions levy would go some way towards stabilising the public finances. “Given the need to reduce public expenditure, it is only fair that greater contributions are made by public servants to reflect the value of their pensions,” he said.

Mr O’Sullivan regretted that the trade unions were unable to support the plan. It was now important that measures were agreed to support enterprise and job creation.

“Unless substantive action is taken to support economic activity in the real economy, the public finances will deteriorate even further,” he said.

The Construction Industry Federation criticised the Government’s decision to cut infrastructure spending. Taoiseach Brian Cowen had said increased efficiencies in the capital programme due to more competitive tender costs would lead to a saving of €300 million without compromising any projects.

However, the federation said the cut was a missed opportunity to stimulate economic activity and safeguard jobs. Director general Tom Parlon said spending on infrastructure generated a superb return on investment and was the only way in the current environment to create jobs.

“The CIF regrets, therefore, that the Government has decided to cut spending by €300 million, particularly given the significant cutbacks in infrastructure spending announced in the October’s budget,” he said.

Mr Parlon added that the Government had referred to the excellent value for money it was getting from the industry and this was a reason to increase, not reduce spending.