Austerity budget to cost 40,000 jobs

THE UNION-backed Nevin Economic Research Institute (NERI) has estimated that 40,000 more people will be out of work, as a result of Budget 2013, than if there had been no fiscal adjustment. NERI director Tom Healy said the Budget had failed to deliver a coherent investment strategy for growth and jobs.

“The Budget is likely to cost jobs while imposing an unsustainable burden on those who have already taken enough in cuts to public services and wages, along with increased charges,” he said.

Meanwhile, the TASC think tank welcomed the introduction of the local property tax, but expressed concern at the likely damaging effect of others measures on equality and job growth. Its director Nat O’Connor said: “Property tax is shown by international evidence to be the least damaging form of tax on jobs and growth.” A full copy of TASC’s response is available here.

The Irish Congress of Trade Unions said the Budget did little or nothing for jobs and penalised working families in order to subsidise business and employers. Its general secretary David Begg said money taken from the pockets of working people would not be spent in local shops.

“The abolition of the PRSI allowance is particularly harsh and sees working families lose €5 per week.  What makes this particularly unfair is that families with an income of €30,000 will pay the same as those on €300,000. This budget could cost working families up to €1,000 a year,” he said.

Begg said six austerity budgets had seen 360,000 jobs lost and €28 billion taken out of the economy with little impact on the deficit.