SIPTU General President Jack O’Connor has strongly criticised the ESRI for proposing further cuts in the Budget. He said it was incredible that “in the same week as the Central Bank reported a 26 per cent increase in distressed mortgages over the past year and a day after the Central Statistics Office reports that the Live Register continues to rise inexorably, the Economic and Social research Institute is calling for intensification of the austerity programme beyond even the draconian provisions of the EU/ECB/IMF plan, which has already inflicted so much misery on our citizens.
“Of the limited options available, intensifying austerity at this point would be the single worst thing we could do. It would further retard our anaemic growth prospects. Even the employers’ organisations are opposed to any measures beyond the requirement to reduce the deficit by 8.6 per cent of GDP in the EU/ECB/IMF plan by next year.
“It isn’t even required to appease the investors in the global financial markets who are increasingly attracted by Irish government bonds. Over the past three years €20 billion, approximately 14 per cent of GDP was taken out of the economy in pursuit of a flawed budgetary strategy which has suppressed growth and retarded recovery.
“These measures have been inflicted on people across our society with appalling consequences for the most vulnerable. The focus now must be on jobs and growth. This is the key to recovery and it is also,
incidentally, the key to building confidence in international markets.
“There will be no sustainable growth without investment. In this regard the real challenge facing the Government is how to find alternative sources of investment to offset the proposed €3.6 billion reduction in Budget 2012, not making it worse as recommended by the ESRI.”
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