Maintenance of jobs 'must be main priority"

Employer group ISME (Irish Small and Medium Enterprises Association) has called on the Government to ensure that job maintenance is treated as the number one priority in response to the latest 'atrocious' live register figures. The association has continued its call for the immediate introduction of an employment action plan to address the country"s unemployment predicament. The latest seasonally adjusted live register figures confirm that a staggering 388,600 people are claiming assistance, up 188,800 on the corresponding period last year, a figure that represents a massive increase of 95 per cent. Consequently, the standardised unemployment rate has more than doubled to 11.4 per cent, up from 5.5 per cent this time last year. ISME chief executive Mark Fielding said the Government needed to face the reality that the Irish labour market is in a mess. The recent budget and Government inaction has indicated an unwillingness to address the ongoing problem, which continues to deteriorate, he said. What is required is less Government bickering and more Government action to address the biggest economic crisis since the State"s foundation. 'The problems will continue to magnify if immediate policies are not introduced to stem the tide of job losses. These need to include a reduction in the cost of labour, incentives to maintain employment and a reinstatement of training funding, which has been significantly cut in recent weeks.' Mr Fielding said that any employment action plan would need to include a reduction in employers" PRSI, a PRSI exemption for employers who employ individuals who have been out of work for more than six months (the exemption should last for two years for each employee recruited), an employment subvention fund to assist companies who find themselves in short-term difficulties, and workplace training subsidies for companies who go on short-time. ISME has, however, welcomed the reduction in gas and electricity prices from last Friday, but said that further cuts are required to get Irish energy costs in line with our competitors. Mr Fielding said: 'While any fall in energy costs is welcome, the reality is that, even with these reductions, Irish energy costs will still be among the highest in Europe. We have a long way to go before we come near to reaching the EU average, which is essential for the country"s businesses to regain some lost competitiveness. 'There is absolutely no doubt that with the dramatic reduction in oil prices over the last number of months, there is scope for further reductions. Businesses have been effectively screwed by energy suppliers over the last number of years and failure to introduce further cuts will be seen for what it is, profiteering by the big energy suppliers,' he added. The Commissioner for Energy Regulation and the Minister for Energy have a responsibility to hard-pressed consumers and businesses to ensure that further reductions are implemented sooner rather than later,' he concluded.