Ireland Faces 'Economic And Social Crisis'

Taoiseach Enda Kenny has told the Dáil that Ireland is facing an "economic and social crisis" while delivering the Coalition's Programme for Government.

The programme, which was passed in the Dáil on Tuesday evening by 103 votes to 46 after four hours of debate, outlined the plan ahead by both the Labour Party and their partners, the largest party in the house, Fine Gael.

Delivering the plan., the Taoiseach said that unsustainable tax and expenditure decisions have undermined the public finances, and that a failure of regulation, and irresponsible behaviour in financial institutions, had brought about the effective collapse of our banking system.

Mr Kenny said the programme for recovery was based on a realistic and honest assessment of the crisis facing the country.

"The Programme offers hope, particularly to young people who fear for their futures in Ireland. It aims to persuade our best and brightest to stay with us, and help lead the process of change and renewal.

"In particular, it places an immediate focus on the jobs crisis.

Within 100 days, we will introduce a Jobs Budget that will help keep our young people at home building the future of their own country."

Among the measures involved will be a cutting of the lower rate of VAT, while the lower rate of employers’ PRSI will be halved. Mr Kenny also promised to create 15,000 new places in training, work-experience and education, for people out of work.

The plan also includes the set up of a Strategic Investment Bank and new mechanisms to deliver credit to small businesses.

Responding to the plan, ISME Chief Executive, Mark Fielding said: “The Government have committed to a jobs fund within its first 100 days in office. It is vital that this commitment is adhered to and that a Programme for Jobs Recovery is implemented, with a specific emphasis on sustaining enterprise and addressing long term unemployment.”

Also during Tuesday's speech, Mr Kenny addressed the EU\IMF bailout, Public Service Reform and Political Reform.

The Taoiseach also reassured the House he would not compromise on Ireland's 12.5% corporation tax.

"As the Programme for Government makes clear, this is a core element of our fiscal strategy."

(DW/KMcA)