Massive job losses and even harsher future budgets is all that will result from the Government’s decision to slash €750 million from the Capital Budget.
This is the view of Galway Sinn Féin senator Trevor Ó Clochartaigh, who was responding to the Fine Gael/Labour coalition’s medium term fiscal outlook, announced recently.
Sen Ó Clochartaigh believes that such a drastic cut will “result in the loss of 7,500 badly needed jobs next year”, an unpalatable situation given that figures show that as many as 390,000 people are expected to be on the dole by 2015.
“The coalition seem hell bent on implementing the plan devised by the previous Fianna Fáil administration,” he said. “It is now obvious that those currently in power lack the skill and vision needed to create employment, stimulate growth and instil much needed public confidence.”
Sen Ó Clochartaigh accused the Government of “placing blind hope in global growth to lift our economy”.
“With a double dip imminent, relying on exports for recovery without making the necessary growth interventions in the domestic economy is economic madness,” he said. “If the government continues with its deflationary, economy contraction policies, we will be facing a harsher than expected Budget next December. This has been the trend for the last few years.”