Economic Recovery Plan falls short -Long Term Unemployment Figure to rise
The Irish Government today announced details of its Recovery Plan which promises over €3.5 Billion spending supports with €1 billion from the EU’s recovery fund.
While the Government believe that this plan will ” kick start “ the economy, the reality is somewhat different as nearly €2 Billion of this fund is in welfare support including the PUP and other schemes such as the COVID 19 Restrictions Support Scheme which is extended until the end of 2021 .
The commercial rates waiver is being extended for three months with the 9% VAT rate for the tourism sector will continue until September 2022 .
The plan can only commit to a restoration of 2019 employment levels in 2024 based on the this plan.
The Government hold the view that the economy will surge in the next 3 months as consumers splurge the over €50 billion saved during the Lockdown .
However most businesses are concerned that from September the spending will stop and we will see a significant recession with many businesses failing .
The allocation of 50,000 more training places is a classic example of the state tinkering with the live register figures by ” parking ” young people into an endless cycle of training courses delivering skills for jobs that no longer exist .
The Government plan to ” increase the capacity for the public employment service enabling it to help 100,000 more each year” based on the abject failure of the Intreo Service to both find jobs for people and to find skilled workers for employers it is hard to see the prevention of long term unemployment for over 200,000 young people who have suffered the most , particularly young people living in disadvantage areas .
The plan fails to offer any fresh thinking and innovation to stimulate consumers spending which will intern create Jobs .
Creative programmes such as the Bounce Back Discount Card for all sectors failed to be adopted as a solution that will cost the Star zero and ensure real jobs are created this year.