JOBS RECOVERY:FINE GAEL will not back the Government's plan to save €3 billion in next December's budget and will also oppose the recapitalisation of Anglo Irish Bank, the party's finance spokesman, Richard Bruton, has said.
The Fine Gael deputy leader told delegates at the party’s conference that €2 billion in cuts should be imposed in the next budget. The savings should come from current spending rather than tax increases.
“The Government’s plans to take €3 billion out of the economy in 2011, mostly by cutting investment and raising taxes, is the wrong course. It will destroy many jobs and further damage competitiveness.
“Ireland would be better with a reforming budget that takes €2 billion out of the cost of running Government in 2011, €1 billion more than Minister Lenihan is proposing, and sets out a clear path for even greater cost-savings in future years but which avoids further cuts in investment or net tax increases.
“This is the internationally-recognised formula for recovery, job-creation and sustainable public finances,” he said.
The other major announcement made by Mr Bruton was a commitment by Fine Gael to denationalise Anglo Irish Bank and hand it back to its creditors.
“There is no sound moral or economic case for asking ordinary Irish families to take responsibility for the repayment of debts that Anglo Irish built up under Seán FitzPatrick.
“No other country in the world would dream of squandering its national wealth on a bank that has no future or systemic importance to its economy.”
Mr Bruton added that the Government was pursuing a strategy that would leave Irish society deeply scarred by the recession.
“No matter how often the Taoiseach repeats it, writing whatever cheques are necessary to bail out delinquent banks and finding the softest targets to cut the budget deficit is not the formula for economic recovery.”
The party’s enterprise spokesman, Leo Varadkar, proposed a plan called Work Share to save 10,000 vulnerable jobs through the creative use of the social welfare system.
He also proposed the creation of 28,000 internships and training places which would encourage people back to jobs.
“This is a Fianna Fáil recession, caused by the reckless and irresponsible policies of Bertie Ahern, Brian Cowen, Brian Lenihan and their party Fianna Fáil. They ignored all the warnings and opposition as they inflated away our competitiveness, squandered our hard-earned surplus and allowed the banks to run amok.”
Energy spokesman Simon Coveney outlined details of the New Era plan which he said would create more than 100,000 jobs by completely restructuring State facilities.
He said it could be done with a €18 billion investment. Half of this would come from a new bond available to private investors. The remaining half would be raised through the National Pension Reserve funds and the sale of non-essential assets. This would involve the privatisation of parts of Bord Gáis, ESB International and other State utility companies.
The party’s spokeswoman on tourism, Olivia Mitchell, repeated the party’s commitment to cutting the rate of VAT on labour-intensive industries and the abolition of the €10 travel tax.