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IBEC economist Fergal O'Brien says government plans for Budget 2013 may harm job creation. Mark Stedman/Photocall Ireland

IBEC demands 'pro-jobs Budget' as forecast for 2013 is lowered

The business group says plans to increase PRSI or make employers cover sick will hamper job creation.

THE EMPLOYERS’ GROUP, IBEC, has demanded that the government do its utmost to concentrate on job creation in the 2013 Budget – saying some of the proposals being considered go against the government’s objective of getting people back to work.

The calls come as the group releases its latest Quarterly Economic Outlook, in which it lowers its expectations of economic growth in Ireland next year – a reduction it attributes to “anaemic economic growth in the rest of Europe and heightened consumer worries at home”.

The group now predicts that the Irish economy will grow by 0.8 per cent in 2012, having originally forecast growth of 1 per cent. Its forecast for 2013, which had previously stood at 2.3 per cent, has been lowered to 1.8 per cent.

IBEC says some particular proposals reportedly under consideration – such as Joan Burton’s initiative forcing employers to cover the first few weeks of employee sick pay, and the possibility of increasing PRSI – could cost jobs, and undermine ambitions to create new employment.

“Companies are putting together budgets and business plans for 2013,” IBEC chief economist Fergal O’Brien.

“If employment costs rise they will be much less likely to take on new staff. Some will be forced to downsize or go out of business.

“The focus must be on cutting public expenditure and raising revenue in a way that is least damaging to growth. The most damaging thing Government could do in Budget 2013 would be to add to the cost of employment.”

IBEC’s forecasts also include a fall of 2 per cent of consumer spending.

In full: IBEC’s Quarterly Economic Outlook (PDF) >

Budget 2013: Noonan pledges no increase in income tax rates, bands

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29 Comments
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    Mute Ciaran Whyte
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    Oct 22nd 2012, 7:53 AM

    As an employer of 18 people, forcing the burden of sick pay from the state on to the employer will cause immediate job losses, let alone stifle job growth. Can’t see how the a government believe this could be a good thing? Fingers crossed it won’t happen, but if it does, the job losses will be on their head, not mine.

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    Mute Ciaran Whyte
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    Oct 22nd 2012, 8:11 AM

    Not sure what the red thumbs are for? Salary costs are the highest costs in our business. It’s not a choice, it’s simple economic fact that we can afford an increase in them. If people are not working, we can not afford to pay them above and beyond our current sick pay policy.

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    Mute Giuseppe Valente
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    Oct 22nd 2012, 11:02 AM

    The red thumbs are because you have made out you will have to sack ppl if you have to pay sick leave. It’s a blackmail or gun to the head stance to employees. Why u can’t see why ppl would red thumb that means your a …..

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    Mute Ciaran Whyte
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    Oct 22nd 2012, 11:40 AM

    It’s not blackmail, it’s simple economic fact.

    My company simply can not sustain an increase in employment costs. No more than average Joe Citizen can sustain an increase in PAYE/resedential tax/water charges.

    I have X income coming in, Z expenses going out, leaving (hopefully) a small profit of Z.

    If Z increases due to the forced burden of taking on sick payt and the business loses money, with no way increasing income, the only alternative is to reduce costs. As salaries are the single largest cost and as this new charge directly relates to employees, then the only way of reducing it, is reducing headcount.

    Of course, I’d be more than open to hearing an alternative solution from you?

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    Mute Caroline Locke
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    Oct 22nd 2012, 1:12 PM

    If you are an employer: boo to you slave labour driver.People have the right to get sick pay.Sucha moronic comment.Shame on you .

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    Mute NedStark
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    Oct 22nd 2012, 2:02 PM

    Excellent point Ciaran. You should be aware though that only the leftist ideas are tolerated here. Loads of money for everyone… but no ideas of how to do it.

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    Mute Darren Martin
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    Oct 22nd 2012, 2:49 PM

    See Ciaran, you won’t get any thanks in this country for creating jobs, not unless you live on nothing yourself, and the only people you employ of lefties who do little work, with no responsibility, for high salaries… *pish*.. how do you not know this already?

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    Mute Anthony Purcell
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    Oct 22nd 2012, 7:13 AM

    government plans working a treat get young people to emigrate they come off the register result…

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    Mute Jay Thompson
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    Oct 22nd 2012, 7:22 AM

    Makes sense we cant afford to pay them ha

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    Mute the lost lenore
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    Oct 22nd 2012, 12:21 PM

    While I agree with some of the business owners posting on this topic, I’m not buying into IBECs crocodile tears for jobs for one second. They’ve been at this since the recession started, it’s like a broken record now and could be summed up thus: “erode or erase all basic workers rights because if you don’t it will cost jobs”. Balls, gentlemen. What IBEC (who represent big business, not SMEs) don’t tell you is that some of their members earning huge massive profits have every intention of trousering more at the expense of workers if they can at all get away with it in the name of job creation or the recession. One of their other recent offings involved comparing the minimum wage to European countries where the cost of living is about half of what it is here. Likewise po-faced comparisons of welfare rates to counties where you can rent a house for €400 a month.

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    Mute Damien Flinter
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    Oct 22nd 2012, 1:52 PM

    Ibec want us to work for nothing..so they can employ us all. Thats their logic. And do a nixer to pay the rent and eat.

    If they are serious about ‘job creation’(the great mantra for taxpayer subsidies) when will they admit that the logic of ever-increasing productivity and stagnant wages with rising living costs is that the working hours must be reduced. A thirty hour working week would generate jobs. Under present conditions, with austerity choking consumption, jobs will keep evaporating. Its a false economics, stupid.

    And if there are not more than subsistence wages..where exactly do you find a market?
    Blinded by greed, even to their own self-interest.

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    Mute Darren Martin
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    Oct 22nd 2012, 2:53 PM

    Seriously Damien?..
    Move to Cuba if that’s how you think an economy should work…
    Our Public sector is too big, we need to reduce it (drastically), Our spending is too high, we need to reduce it (drastically), and out taxes are too high, we have no money left flowing in the economy, cos there are no customers, since all our money is gone on tax…

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    Mute Damien Flinter
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    Oct 22nd 2012, 3:09 PM

    Our public sector, our taxes , our country….go, move, shift…try Cuba…its our country.

    Hell or Connaught in modern parlance.

    An economy should feed its population. Not an exclusive clique of arrogant parasites with their heads in their anal wallets. Its ungoverned laissez-faire capitalism brought the last round of famine.

    You’re so fond of the law of the jungle, go live in Haiti. Capitalism of your idiotic brand made it what it is today, also by means of fraudulent bank debt, imposed by the French empire. Send us a postcard when you’ve made your first million.

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    Mute Damien Flinter
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    Oct 22nd 2012, 3:16 PM

    And as for your imbecile ‘analysis’ of whats wrong with the economy…

    Have no cell at all in your cranium?

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    Mute Darren Martin
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    Oct 22nd 2012, 3:16 PM

    An economy should allow for people to feed themselves… but you keep up your hysterical conspiracy theory Marxist rhetoric. Lord knows the masses seem to be lapping it up all over this country…

    I have to ask though… out of curiosity, what would you consider rich to be?

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    Mute Darren Martin
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    Oct 22nd 2012, 3:23 PM

    … and verbosity isn’t nearly as impressive as you imagine… especially when all you do is insult people with opposing ideas. Personally I think your 30 hour working week makes little sense. You will have more people (payroll), with the same productivity (if lucky)… doesn’t exactly sound like it would make Ireland competitive again.

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    Mute Damien Flinter
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    Oct 22nd 2012, 3:28 PM

    ‘..hysterical conspiracy theory Marxist rhetoric..’.

    I consider that pretty rich.

    Rich as the idea that we now live in a post-Machiavellian conspiracy-free world.

    The masses are lapping what up??
    What are you on, besides a diet of tabloid programming?
    Or is it a payroll for the junior chamber?

    I’d guess a FG internship. I do believe its sinking.

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    Mute Damien Flinter
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    Oct 22nd 2012, 3:32 PM

    Current policies are making it competitive with Asian sweatshops. That is precisely the intention and trajectory.

    You are out of your depth. I suggest you put down the shovel.

    Leave it some more capable ideologue. You are not well enough programmed, yet.

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    Mute Damien Flinter
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    Oct 22nd 2012, 3:37 PM

    As for ‘insult’..

    ..who was it told the other to phukk off to Cuba?
    That merits injury from this former emigrant’s stand.

    4
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    Mute Darren Martin
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    Oct 22nd 2012, 3:37 PM

    Since you seem to have nothing of interest to offer here, except envious bile and rhetoric… Jog on whinger!

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    Mute Damien Flinter
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    Oct 22nd 2012, 3:54 PM

    Did you inherit that clap along with your clapped out ideas?

    You think because you recorded that clip we won’t know what you’re doing with your hands?

    Give it up. Join a library. Then you’ll have something besides Murdoch’s shite in your head.

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    Mute Caroline Locke
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    Oct 22nd 2012, 1:09 PM

    IBEC is demanding SLAVE LABOUR JOBS for the state of European statistics. x-(

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    Mute Darren Martin
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    Oct 22nd 2012, 2:57 PM

    *Groan*

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    Mute Stephen McMahon
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    Oct 22nd 2012, 9:49 AM

    Ah why did ye remove my comment? Have a sense of humour ffs

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    Mute Stephen Church
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    Oct 22nd 2012, 12:56 PM

    The only way to create jobs is to cut taxes , and we know that probably wont happen in the budget

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    Mute Damien Flinter
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    Oct 22nd 2012, 2:00 PM

    No stephen, there is only so much necessary work. There are only so much luxury, entertainment and services jobs can be created.

    We need a little rationality on the dog-eat-dog competition that is fattening the already obese fat-cats.

    We need to shorten working hours, and guarantee evreyone a viable income as a human right. And we need to limit profiteering to something approaching sanity.
    It may require bayonettes and guillotines. Again.

    5
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    Mute Stephen Church
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    Oct 22nd 2012, 2:04 PM

    I really hope your trolling , otherwise id recommend you look up how the world, and before you come back , capitalism does work , socialism does not.

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    Mute Damien Flinter
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    Oct 22nd 2012, 2:19 PM

    No stephen, I’ll leave the trolling to cerebrally sclerotic ideologues like yourself.

    I’m back, and I’ve probaly seen as much of the world in reality as you have on your TV.

    But ‘..capitalism does work..’.

    It does indeed. For capitalists. I am not selling an ism, so jam your presumption(and your ideology) in your wallet …before you come back. You may need a thought this time.

    4
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    Mute Brian O' Connor
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    Oct 22nd 2012, 9:29 PM

    A case of everybody happy but the owner?

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