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Government policy deflationary and anti-jobs – Tóibín

5 May, 2011

Commenting on the release of the latest set of negative economic indicators Sinn Féin Enterprise, Jobs and Innovation Spokesperson Peadar Tóibín TD said that "the policy direction of this Fine Gael-Labour government, like its Fianna Fail predecessor, is both deflationary and anti-jobs".

Speaking from Leinster House Deputy Tóibín said:

“The domestic economy in Ireland is flat lining as a result of 3 years of deflationary policies. The deficit at the end of April 2011 was €9.9bn compared to a deficit of just under €7bn in the first four months of 2010. Debt servicing of national debt for the period cost €1.8bn.

“VAT returns, a good indicator of the health of the domestic economy were €107m or just over 3% behind target at end of April. Irish services sector activity in April moved towards stagnation as rates of growth in both activity and new orders slowed again. Today we see that the jobs market remains stagnant with unemployment at a shocking 14.6%.

“For every euro this government takes out of the economy there is a multiplier effect further reducing the size of the economy. For three years now growth levels have been lower than expected, unemployment has been greater than expected and investment recovery has been lower than expected. You would in this circumstance expect that this would motivate a change in economic policy. But no, despite the facts Fine Gael and Labour adhere rigidly to Fianna Fáil’s failed economic orthodoxy.

“We urge the new government to give the hundreds of thousands of people who languish on the dole hope and kick start the economy with a badly needed counter cyclical stimulus investment”.

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