CSO Figures Show Ireland at the 'Limits of Austerity'

23 Jun 2011

New figures that show a sharp fall in domestic demand confirm that we have reached 'the limits of austerity' and urgently need to inject new life into the economy, the Irish Congress of Trade Unions has said..

Figures from the Central Statistics Office show that domestic demand fell by almost €1 billion (€990 million) or 3.1%, in the year to end Quarter One. There was also a substantial fall in Gross National Product (GNP) of some €4.3%, in the first quarter of 2011.

Congress Economic Advisor Paul Sweeney said: "The austerity programme is crippling the domestic economy. It is choking off demand, closing businesses and costing us jobs. Even the most ideological of zealots must now concede that the programme is self-defeating as it is killing that which it purports to try and save."

He said the rise of 1.3% in Gross Domestic Product (GDP) would have little impact on the lives of people in Ireland. "That figure primarily reflects the exports and flows of funds, the profits and royalties of multinational corporations

"We have reached the very limits of austerity and need an urgent change of policy. The cost of the bank bailout and cuts in public spending are costing jobs and devastating people's lives.

Mr Sweeney said the first step in a new strategy would be to "announce an enhanced Jobs Initiative to boost confidence. We should invest some of the remaining €5.3bn in the Pension Reserve Fund in job creation, in credit for small business, in training and in needed infrastructure, especially public transport and school buildings."