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Austerity Treaty is bad for jobs and growth – Tóibín

2 May, 2012

Sinn Féin jobs and enterprise spokesperson Peadar Tóibín TD has today said that “the Austerity Treaty is bad for jobs and growth and if passed on May 31st will hamper any prospect of economic recovery.”

The Meath TD’s comments come as the Irish Exporters Association announce a slowing down of export growth and the CSO live register figures show no let-up in the numbers of people signing on.

Deputy Tóibín said:

“Unemployment is at a record high despite massive emigration. At the end of April there were 436,000 signing on. Eurozone unemployment has reached an all-time high of 10.9%. The Irish Exporters Association has today said that Eurozone recession is slowing our export growth. The domestic economy and one of our primary export markets are both in recession.

“At a time when the Irish and Eurozone economies desperately need investment in jobs and growth, the Government and their EU counterparts are proposing the very opposite.

“The Austerity Treaty is bad for jobs and for growth. If passed it will hamper any prospect of economic recovery.

“Businesses, either foreign or domestic, operating in Ireland need a competitive cost base, a skilled workforce, access to markets and demand. Demand in Ireland and Europe has fallen off a cliff due to austerity. This treaty will mean an extra €6 billion in tax increases and spending cuts post 2015. This will further depress consumer demand, pushing the domestic economy further into recession.

“At the same time the Treaty will see governments across the Eurozone contracting their own economies to meet the Treaty’s draconian deficit rules. This will close off one of our most important export markets, which as today’s figures show, is already in serious trouble.

“More austerity is the last thing that the Irish and Eurozone economy needs. The only way to generate growth is to invest in jobs and strategically stimulate demand. This is recognised by the growing number of political parties and trade unions across Europe who are opposing the Austerity Treaty.

“This government’s policy of austerity is becoming increasingly isolated within the EU. This Austerity Treaty is increasingly being recognised as unworkable. Now is the time for investment in jobs.”

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