"This state-led Stimulus Plan is good news for Irish workers, and if implemented well, it will boost private sector confidence, leading to further growth", said Paul Sweeney, Chief Economist of the Irish Congress of Trade Unions.
As the long-time advocate of a domestic Stimulus Plan, Congress welcomed the announcement, saying it could mark "an important step in Ireland's recovery."
Congress has long warned that recovery would take far longer as this recession came on top of a deep financial crisis. The 'syncronised recession' in Europe and the US was made worse with simultaneous deflationary policies that were killing the patients, Mr Sweeney explained.
"Overall, the level of austerity is failing, choking growth and jobs. The best solution is to change policy, not to try harder. This antidote of investment could greatly aid recovery. The package is, of course, in response to the growing recognition, even by the advocates of austerity, of the need for a change in medicine, for the injection of Growth measures. Even at our last two meetings with the Troika, there was recognition of the need for some form of domestic stimulus.
"Congress has proposed a targeted, frontloaded, strategic investment of upwards of an average of €3bn each year over the next three years, in addition to the committed public capital programme; an annual boost worth almost 2% as a share of GDP to the Irish economy," Mr Sweeney said.
"Our objective is to deliver much needed strategic infrastructure at a fair cost that, where possible, would be kept off the State's balance sheet. This would expect to generate in the order of 30,000 jobs per annum. It would begin to offset the deflationary impact of fiscal austerity, which has already taken €24.4bn out of the economy over the past four years.
"For this to work well, it must be implemented with care. Public procurement must be clever. It must deny fly-by night companies from inside or outside the State the opportunity to maximise profits by importing cheap labour and undercutting good local employers.
"It must be used to maximise opportunities for Irish companies and workers in order to reduce the social welfare bill, to help employment and revenue-generation in Ireland. The stimulus should also provide an opportunity for new apprentices and those who have been unable to finish their training because of the downturn.
"Congress cannot understand why good viable Irish companies should be sold off during the downturn to repay the private banks' debts or even to part-fund this stimulus. Our alternative is to sell bonds in the New Era State Holding Company - not flog off fine companies to predators who will shift the management and technical functions abroad. In the context of our debts, the capital to be raised is puny, especially in a deep recession.
"It is clear that Congress' plan is much more ambitious than the Government's. However, today's announcement is a big step in the right direction," Mr Sweeney said.
