Taoiseach Brian Cowen's tough words for the Irish economy last night received mixed reactions from politicians and trade union leaders.
While Labour Party leader Eamon Gilmore gave the Taoiseach's speech a cautious welcome, Siptu president Jack O'Connor accused the Taoiseach of using "woolly words".
Addressing the annual general meeting and dinner of the Dublin Chamber of Commerce yesterday, Mr Cowen warned that the standard of living in Ireland was likely to drop in the coming years by 10 to 12 per cent, and that jobs would be lost.
Labour Party leader Eamon Gilmore said he welcomed the Taoiseach's speech, but warned that it must signal a change in direction.
"If some of the views expressed by the Taoiseach last night are now reflected in future government policies then I believe that there is a much better prospect of ending the downward economic spiral and putting the country on the road to recovery," he said.
"If Mr Cowen's speech reflects a genuine change of direction then it will needed to be reflected in a much more pro-active approach by the government to both job creation and job protection. The loss of every job costs €20,000 in additional social welfare payments and lost tax revenue.
"It is very clear that the problem in the public finances is not the cause of the job losses. It is the huge growth in unemployment that is contributing to the major hole in the public finances."
The Labour Party leader said that jobs must be the priority in the coming years.
"However, as recently as Wednesday last, replying to me at Leaders' Questions, the Taoiseach disagreed with me on this very point and insisted instead that stabilising the public finances had to be the priority," he said.
Mr Gilmore said his party would engage with the Government in exploring new proposals to protect jobs and generate new economic activity.
However, he said the Taoiseach's commitment to make jobs a priority would be tested by the proposed redundancies in Dublin Bus and Bus Éireann, the Waterford Crystal employees 'efforts to save their jobs, and if he was prepared to make "a real effort" to rescue jobs at Dell and Ericsson.
Mr O'Connor said that more would be needed to maintain social cohesion. “We noted his desire to maintain the social partnership process, which is okay as far as it goes. However, despite all the woolly words about ‘working together’, the fact of the matter is that the only people he has inflicted pain upon in last Tuesday’s announcement are those who have to work for others for a living, while not a cent is required of the wealthy," he said.
“It will require a great deal more than woolly words to maintain social cohesion during the difficult times that lie ahead as a result of the Government’s gross mismanagement of the economy over the last 12 years.”
