PRODUCT PROFILE

Latest Dublin Prices

NERI think-tank: Cuts to cost 30k jobs

Wednesday, September 26 14:27:52

Left-leaning independent think-tank, the Nevin Economic Research Institute (NERI), today said the magnitude of the cuts the Government plans to make in the economy could cost up to 30,000 jobs.

The economic think-tank's alternative 'Budget for Growth and Equality' would maintain 2012 spending levels while increasing taxes on high income and high wealth groups by E1billion , investing in jobs and infrastructure and reversing capital spending cuts.

Commenting on the publication, NERI Director Dr Tom Healy pointed out that an alternative budgetary strategy is possible within the terms of the Troika targets on government deficit and debts.

"The choice between taxes and spending is ours to make. Most people have already taken enough in cut to public services and wages along with increased charges. What we need instead is a strategy that invests in growth and begins to address the huge shortfall in taxes paid at the very top end of the income distribution."

"Such a strategy is not only equitable but also makes economic sense. In our Quarterly Economic Observer, we show how our proposals are likely to result in 21,000 more jobs than under the Government's proposed consolidation - while still meeting the Troika's deficit target," Dr Healy concluded.

"The choice between taxes and spending is ours to make," said Dr Healy, ahead of the publication of NERI's latest quarterly report.

"Most people have already taken enough in cuts to public services and wages along with increased charges. What we need instead is a strategy that invests in growth and begins to address the huge shortfall in taxes paid at the very top end of the income distribution."

In its latest report, Neri said the Government's austerity strategy was failing and that introducing a stimulus instead of making cuts could create more than 20,000 jobs.

It said existing austerity measures could risk 30,000 positions.