FF: Govt plan 'falls far short'
Fianna Fáil has said that the Government's "spin-driven investment announcement" will result in very few new jobs for at least two years.
According to the party's Public Expenditure Spokesperson, Seán Fleming, the earliest that some of these projects will start is towards the end of 2013.
Mr Fleming said: "Everyone welcomes news of a €2.25bn investment programme in the economy but many people would have expected to see this money going into projects that would start this year.
"Having to wait up to six years to see key elements of this programme is of no use to the almost 15% of the workforce that’s on the live register, or the record numbers of youth unemployed. It falls far short of the immediate shot in the arm the country needs."
The Fianna Fáil TD pointed out that the Government cut capital expenditure by €750m this year and that they plan to cut it by another €550m in 2013.
Mr Fleming said: "Today’s stimulus announcement will go nowhere towards filling the gap left by these massive cuts in capital expenditure announced by Minister Howlin last November. Overall the Government should at least maintain capital expenditure at 2011 levels. Even with this new stimulus programme they will not achieve this.
"The fact that Minister Howlin is now prepared to announce that Grangegorman is this Government’s 'flagship investment project' is astonishing considering it was this Government that withdrew its support for Grangegorman only last year.
"At that time, DIT and the team involved in Grangegorman announced that they would proceed with the project, even without Government’s support. The Government’s belated realisation of their initial mistake is welcome."
Sinn Féin have said the announcement was "too little for the people on the dole and too late for the people who have left the State".
The party's finance and enterprise spokespersons, Pearse Doherty and Peadar Toibín, said today that the government is spinning on stimulus while people are waiting for real action on jobs.
Both deputies also highlighted the Government cuts to the capital budget last year and its intention to cut it next year and the following year.
Deputy Doherty said: "How you can claim that spending €2.25bn on capital projects, while cutting cumulatively €3.5bn from capital investment, is a stimulus, is beyond me.
"Today's announcement is little more than window dressing and clever accountancy and the net result of the government's plans will see a reduction in billions of euro on capital spend, vital infrastructure not being built and an opportunity missed to put people back to work.
"The fact that some of this investment is dependent on the sale of profitable state assets is of huge concern."
Deputy Toibín said: "A genuine stimulus is welcome, but this is not what is happening today. Sinn Fein has called for a €13bn stimulus plan focusing on infrastructure and new enterprises. This money could be sourced from the discretionary portfolio of the National Pension Reserve Fund, matching funding from the European Investment Bank and an investment from a more than willing Private Pension sector.
"Stimulus needs to be invested into strategic sectors which will bring about the greatest multiplier effect. It also needs to have an even regional delivery."
