Budget 'Failing To Invest': SIPTU

The boss of one of Ireland's largest trade unions has condemned the Dáil Budget.

SIPTU General President, Jack O'Connor, has said that taking €3.8 billion out of the economy while failing to invest a similar amount for growth will not lead to economic recovery.

"The biggest problem with Budget 2012 is that it won’t work. It is not possible to take €3.8 billion out of the economy on top of more than €20 billion over the previous four years without further depressing economic activity, no matter what way it is done.

"The key challenge facing the Government is how to find a way of leveraging as much money into the economy as the budget takes out of it."

He said this could be done through imaginatively 'incentivising' the private pension funds.

He said they could invest 5% of their balance sheets i.e. €3.5 billion in the domestic economy and augment it through €2 billion of what remains of the National Pension Reserve Fund.

"This would generate tens of thousands of jobs. If this is not done the figures for Budget 2013 will be even worse," he added.

"The second problem with the budget is that the burden of adjustment is still falling disproportionately on those least able to bear it although the balance is better than previously," he added.


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