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limerick’s
Friday December 2, 2011 | 15
FUTURE
Next week Michael Noonan’s Budget will introduce drastic cuts to public services in an attempt to salvage the national finances. Two Limerick TDs give their views on both the city’s and the country’s economic outlook.
Niall Collins
S
ince the middle of 2008, Fianna Fail has taken significant steps to correct the public finances and return this country to a sustainable fiscal posi-
tion. Over the past three years, the Irish public has faced four extremely tough budgets resulting in €21 billion in budgetary adjustments. Labour and Fine Gael are now taking credit for a budget they opposed last December, but it was these tough decisions that resulted in an improvement in the public finances. With 447,000 people on the live register, the Government cannot afford to take their eye off the ball. The sovereign debt crisis in Europe has added a new layer of uncertainty to the economic outlook here at home. While the potential collapse of the euro looms over us, the primary aims for the budget and government economic policy should be: delivering growth and jobs, continuation of the
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One in five mortgages are in difficulty
correction in the public finances, boosting consumer confidence and stimulating demand in the domestic economy, supporting businesses and enhancing competiveness and ensuring the banking sector serves the needs of the customers and business. The Government’s recent Medium Term Fiscal Statement projected that employment would increase by a mere 65,000 by 2015 and that the unemployment rate would fall only modestly to 11.6 percent. This Government was elected on the basis of its promises to tackle the unemployment crisis by focusing on “spending cuts rather than job
destroying tax increases” (Fine Gael Five Point Plan). The reality though is that the jobs crisis has worsened since Fine Gael and Labour came to office. The latest Central Statistics Office figures are proof of this. Levels of employment are dropping, while unemployment remains unacceptably high, and long term unemployment continues to grow. The Government seems intent on bringing in a number of stealth taxes on jobs that will only damage the domestic economy even further and lead to job losses. The Government’s plan to increase the standard rate of VAT to 23 percent is illogical at a time when retail businesses are on their knees. The Government has recently published new draft Retail Planning Guidelines that will remove the current caps on retail floor space. We are completely opposed to these changes. We believe they will rob town centres of shops, create massive out of town stores while small shops close and people lose their jobs. Limerick City can ill-afford these changes now given the present retail footprint around the city environs which has wiped out trade in the city centre. We believe the Government should bring about an immediate and substantial cut in commercial valuations at every local authority across the country helping thousands of businesses. The domestic economy is going to remain weak and will only get weaker as people continue to struggle with paying their mortgages. At present, there are almost 150,000 residential mortgages in difficulty. That represents one in five mortgages. We want to see practical measures put in place to assist people who are either struggling with their mortgage payments or personal debt. We have called on the Government to immediately publish reformed bankruptcy legislation and also to set up an independent debt settlement office with the authority to provide actual settlements. As the main opposition Fianna Fáil will be rigorous in holding the government to account while bringing forward practical proposals that will inform the debate on how best to secure our economic future. -Niall Collins is Fianna Fail TD for Limerick
Fine Gael TD and Vice-chairman of the Dail Public Accounts Committee
Kieran O’Donnell
I
n examining the economic outlook for Limerick City at the close of 2011, I think it only appropriate to first look at the context that our country finds itself as this has a bearing on all our futures. We have just passed the first anniversary of Ireland entering an EU/IMF programme. In recent months our finances and banking systems have both stabilised and growth has recommenced. Our objective is to regain our economic sovereignty as quickly as possible. The means of doing this is to correct our public finances, fix our banking system and stimulate growth to enable us to once again start to borrow on the international markets rather than being funded through the EU/IMF. People here have come through very difficult times over the last number of years and are now beginning to see light at the end of the tunnel. However, at present this light is being dimmed by market turmoil in Europe which continues to create uncertainty for us here and is something which is outside of our own control. Immediate bold action is required at
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Development of the centre is critical for the entire region
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Fianna Fail TD and spokesman on Environment, Community and Local Government
EU level to stabilise matters. Turning to Limerick City, while there are challenges, I am very positive about our future here. As the capital of the Mid-West, we are strategically very well located, with Shannon International Airport here, the River Shannon and its estuary, and a strong road and rail infrastructure. Furthermore, as well as being the European City of Sport, it is a great place to live in and we have a fantastic workforce here, a great educational infrastructure with UL and LIT and other third level colleges. The immediate challenge is to continue to create jobs here in Limerick through the
indigenous and multi-national sectors. Over the last number of months we have seen positive signs, with many IDA-backed jobs being created alongside indigenous ones. Job creation here is my number one priority and I will continue to work with all stakeholders to deliver further jobs in Limerick. The development and future of the city is something I have a very keen personal interest in and would like to address a number of points in this regard. It is vital for the region that we have a strong Limerick City and the development of the city centre is therefore critical for the entire region. To this end, the recent purchase of the Opera Centre site in the heart of the city by Limerick City Council is a very positive move. Development of this site is vital to the overall Regeneration process of the city and its environs. Focus must also continue to be given to the work in the Regeneration areas of Moyross, St. Mary’s Park, Southill and Ballinacurra Weston. Furthermore, I would like to see a more physical link up between the UL campus in Plassey and the city centre. I feel this will be mutually beneficial to both the city and UL. For the city, it would bring an added dimension to city life, while for the University, it would add to an already-great campus in a very positive way. It would be fantastic (not to say unique) to see the canal being used as a means of transport from UL to the city centre. This would be an ideal context for the university to look at the possibility of increasing its activities in the city centre. One of the keys to Limerick surviving and prospering through the ages since its foundation, has been the ability to re-invent itself. As we enter the second year of the second decade of this millennium, this ability remains intact. Like all great cities, Limerick is constantly evolving, even when the odds are against it. We are, in short, a city that will always be a good investment. With all the stakeholders in Limerick working together for the betterment of our city and our people, we – like Munster, our world-class rugby team - are unbeatable. -Kieran O’Donnell is Fine Gael TD for Limerick