IBEC urges Government to invest in infrastructure
Published 03/05/2011 | 05:00
EMPLOYERS' group IBEC will today urge the Government to invest billions of euro in capital projects to help create jobs and allow the economy to recover.
It warned that reducing investment in social housing, health infrastructure, schools and transport projects below €3.5bn over the next three years would "greatly restrict" economic recovery and and lead to long-term social problems.
In a submission on the Government's jobs initiative to be announced later this month, the group said the previous Government failed to address the growing unemployment crisis.
IBEC urged the Government to develop proposals for a loan guarantee for small and medium-sized businesses to extend credit to firms that could not otherwise get financing.
Its measures would cost about €100m to implement, but they should not be funded through tax hikes.
"It is essential that neither the measures proposed here or other initiatives brought forward by Government are funded through taxation increases," it said. "This would be entirely counter-productive."