O'Dea says Government plan for jobs 'rather minimalist'

THE GOVERNMENT’S jobs initiative was described as “rather minimalist” by Fianna Fáil spokesman Willie O’Dea.

“When one compares it to the documents produced by Fine Gael less than 12 months ago, which promised €18 billion expenditure on job creation, it pales into insignificance.”

Mr O’Dea said for every €36 promised in that original and widely circulated document, €1was being spent yesterday.

“Of course, when reality kicked in, the figure of €18 billion dropped, first to €7 billion. Now it has dwindled to €500 million.”

Mr O’Dea said Minister for Finance Michael Noonan had announced a very important change on the tax treatment of research and development expenditure, which he warmly welcomed.

He said a considerable range of labour-intensive areas which were VAT-rated at 13.5 per cent had been excluded in the plan.

The Government, he said, would ensure that someone who was having a meal out would pay less, but the 13.5 per cent still applied to the ESB and electricity charges suffered and incurred by people living in fuel poverty.

Sinn Féin spokesman Pearse Doherty said there were families finding it difficult to pay their bills and businesses finding it difficult to secure credit lines, as well as unemployed people finding it difficult to get work.

He added that the speed at which Fine Gael and Labour had abandoned their promises was truly breathtaking.

“Within two weeks of the election they agreed a programme for government that contained no figures or targets for job creation in its 64 pages.”

Some aspects of the initiative were undoubtedly to be welcomed, said Mr Doherty.

However, when the proposals outlined by Mr Noonan were taken together, it was clear that not only would they fail to create substantial employment, but also that some of them would depress consumer spending and lead to a rise in unemployment.

Catherine Murphy (Ind) said it was not an overstatement to say that the document was a modest proposal.

“This initiative is about giving hope to people outside the House, but I do not see where the hope lies.

“A number of these small initiatives are worthwhile, but the scale is modest.’’

Shane Ross (Ind) said he was sympathetic to the Government’s “daily mantra’’ blaming Fianna Fáil for the state of the economy.

“This can carry some weight for a short period, but this is the first time we can point to the Government’s part of the solution,’’ he added.

It was “a damp squib’’ that promised so much and delivered virtually nothing.

He said one or two of its provisions were good.

“For example, the concentration on the tourism industry is to be commended, and there are some other concessions here, there and everywhere, but the Government is tinkering at the edges,’’ he added.