Govt Launches €1bn Job Protection Plan

The Government has announced it is to make up to €1bn available to subsidise and protect Irish jobs.

Revealing the plan last night, the Government said the vast sum would be used in a Temporary Employment Subsidy Scheme, to assist up to 30,000 workers whose jobs are in jeopardy as part of a national economic recovery plan.

The Government has also proposed measures to tackle problems with pensions, home repossessions and private sector pay.

Announcing the fund, the Government said the up to €1 billion could eventually be offered but it would be conditional on the effectiveness of the employment subsidy scheme, while initially €250m would be provided to support workers in vulnerable sectors.

However, Fine Gael's Employment Spokesman Leo Varadkar criticised the subsidy as an "ineffective sop", which he claimed "will not work".

Mr Varadkar said the fund would only help a small number of selected companies in the traded sector and would be unlikely to save many jobs.

"The Government should adopt Fine Gael's proposals to cut VAT, abolish the Travel Tax and reduce employers’ PRSI instead of offering a €250 million subsidy to IBEC and the unions," Mr Varadkar said.

He added: "Until the economy is restored to competitiveness, companies will continue to suffer and jobs will continue to be lost. No scheme, subsidy or clever wheeze can restore prosperity. We need to get the fundamentals right in our economy.

"Fine Gael's proposals would help all businesses, large and small, by stimulating demand and reducing prices and business costs across the economy."

(DW/BMcC)