In the 'CIF Budget 2014 Submission' document, the CIF highlights the fact that the upcoming Budget will be the first time since the Government came to power that it has room to bring forward stimulus measures.
The CIF points out that stimulating growth in the construction sector through a capital spending stimulus is the quickest way to create jobs which reduces unemployment, while also increasing income tax revenue and reducing social welfare payments. Referring to the fact that one in four of the people on the Live Register are former construction workers, the CIF highlights out that the construction sector offers the shortest turnaround to get people back to work and that is also provides a regional spread of employment opportunities throughout every town and village in Ireland.
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"Budget 2014 represents an opportunity," said CIF Director General Tom Parlon. "For the first time since this Government came to power, it has room to manoeuvre and the ability to bring forward stimulus. Up until now the Government has concentrated on tightening the State's fiscal and economic conditions. These steps played a major part in getting the economy back on track. The measures taken, combined with the excellent diplomatic negotiations carried out by the Irish Government with our EU and other Troika partners have provided the means whereby stimulus can be implemented.
"This opportunity must be grasped. If the Government wants to create more jobs, to reduce the level of unemployment, to increase income tax revenue while also reducing the social welfare burden on the State, then we need to encourage growth in the economy. The most effective way to achieve that goal in the shortest possible turnaround is to get the construction sector working.
"One in four of the people on the Live Register (104,754 according to the Department of Social Protection) are former construction workers. These people are spread all over the country. A significant portion of them would not require retraining. If there was more construction activity taking place they could move seamlessly from the dole queues to the ranks of the employed with the minimum turnaround.
"No other sector provides that kind of opportunity. Growth in no other sector will reach as many different parts of the country, improving local economies in as many regional towns and villages.
"For all these reasons the main and overarching priority from the CIF for the forthcoming Budget is that the Government uses this opportunity to stimulate the economy by providing more funding for capital projects."
(CD/JP)
