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Morgan criticises Ernst and Young Report

24 June, 2010

Speaking today following the release of the Ernst and Young quarterly eurozone forecast which predicts Irish GDP performance will leap from its current position of 15th this year to 2nd in 2011, Sinn Féin Spokesperson on Finance Arthur Morgan has criticised the positive outlook for the economy being taken by Ernst and Young, especially when they forecast that any medium-term economic recovery in Ireland will be largely jobless.

Deputy Morgan said:

“Ernst and Young attribute the economic recovery that Ireland will experience next year to being pro-active in reducing costs, namely in wages and public services. But the State will be burdened with a crippling unemployment rate, we will be losing a generation of young people to emigration and poverty will increase as people become further indebted and unable to afford day-to-day living.

“The report shows that Ireland is set to end 2010 with a 13.8% unemployment rate and Ireland will have an average annual unemployment rate of 12.6% until 2014. Economic recovery in statistical terms may be on course, but in terms of our human capital and the resources and talent that they bring, the lack of job creation will stunt economic growth in the long-term.

“Furthermore the Government’s reaffirmed commitment to impose €3 billion in public sector cuts in next December’s budget, as announced by the Taoiseach yesterday, will hit low and middle-income workers the hardest. The Government are employing deflationary policies that will inevitably reduce our competitiveness in the long-term.

“This governance with blinkers on that neglects job creation and stimulus, the economic governance of austerity, will not only increase unemployment and social dislocation, but it will also increase public debt.”

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