Ireland Paying 'too high a price' for Bank Bailout

2 Jun 2010

Ireland is paying too high a price for the bank bailout and it is costing us jobs and damaging prospects for recovery, Congress said today (June 2).

Speaking in response to figures that showed a rise in unemployment - from 13.5% to 13.7% - Congress Economic Advisor Paul Sweeney said that the 'true' unemployment figure was far higher and that diverting billions to bail out the banks was destroying jobs and undermining growth.

"The Government's highly deflationary policy is taking money out of the economy and destroying jobs, as these figures illustrate. The price of the bailout is too high - in financial, economic and social terms," Mr Sweeney said.

"In addition, wholesale cuts in spending and incomes are reducing both investment and demand in the economy - again the first casualty is jobs. Demand is down 10% in the last three years.

"The unemployment trend is upwards and more jobs will be lost if Government persists with present policies," he added.

"Equally, it is clear that the figure of 13.7% underestimates the 'true' level of unemployment and thus the scale of the social and economic devastation now unfolding.

"When you add to that number the tens of thousands who have been forced to emigrate, because they cannot find work; the tens of thousands who have stayed in or returned to education for the same reason and the tens of thousands who can only get part time or casual jobs, you get a more accurate picture of the scale of the problem and its huge social impact.

"Taking those numbers into account, the true unemployment figure could be as high as 18.5%.

"This is a huge crisis and will put serious strain on our social fabric. The lost potential for the economy, for society and the individuals is huge, when almost one in five is out of work. The level of human suffering is immeasurable.

"We urgently need a significant reordering of Government priorities with people placed firmly before banks and private profit. In May 2009, Congress called for a €1 Billion Job Creation & Protection Plan, it needs to be implemented immediately," Mr Sweeney concluded.