NewERA investments will stimulate the construction sector and the wider economy in the face of the recession, supporting just over 105,000 additional jobs in four years. These will be split almost evenly between jobs directly created from the investment spending (construction, engineering etc.) and spin-off jobs from the extra consumer spending and the positive competitiveness effects of the investment programme. The new jobs are likely to be spread evenly between regions and skill levels, and will likely be concentrated in the following areas:
- Telecoms, civil and structural engineering
- Plant maintenance and operation
- Scientific researchers
- Insulation and home energy appliances
- Plumbing, electrical work and other construction crafts
- Software programming and support
- Forest maintenance and timber processing
- Digital content production for health, education and Government services
These job forecasts are based on conservative assumptions, drawn from empirical evidence of the economic impact of investment in construction and infrastructure1. For example, empirical analysis of the Irish economy between 1970 and 2006 by Philip Lane of Trinity College finds that government investment has a positive "Fiscal Multiplier" that is well above unity: a given boost to public capital spending raises output by considerably more than the size of the injection.
It may well be that these figures are too cautious. As mentioned in a previous section, about €3 billion of the total NewERA investment relates to investments in water and telecoms infrastructure that the Government currently proposes to finance from general taxation. While these investments and the resulting job creation is not currently counted as "extra", there is now a clear risk that much of the tax- funded water and broadband investments currently planned will, in the absence of NewERA, be abandoned because of Government cutbacks to the capital programme.
The spin-off "employment competitiveness" effects of the investment programme will be substantial. Again, the analysis by Lane shows that a boost to public investment has a significant long-run positive impact on business costs and external competitiveness. It is noticeable that the key utility networks targeted for additional investment by NewERA - water, broadband and energy - have been identified by the National Competitiveness Council, the OECD and the European Commission as key weaknesses for the Irish economy and sources of high costs for Irish businesses.
Figure 1: Fiscal Policy for the Crisis, IMF Staff Position Note, December 2008; The Impact of Fiscal Shocks on the Irish Economy, Benetrix and Lane, Institute for International Integration Studies, February 2009.
SHORT TERMS JOBS ACTIONS
WORKSHARE - 10,000 JOBS RETAINED
We need to save as many jobs as possible. This scheme would provide government support for enterprises and their employees that opt for short-time working instead of redundancies. Benefits will include keeping people off welfare and involved in the work place making it easier for people to return to full time employment. Training would be provided during off time.
NATIONAL INTERNSHIP PROGRAMME - 13,000 PLACES
Part-time placements in the public service, private and voluntary sectors for unemployed graduates with funding for masters or higher qualification. These would include teaching interns in schools, nursing interns in hospital, interns in local authorities and Government Departments etc. They would use a €3000 education voucher to buy a place in college to study for a masters or additional qualification the rest of the week.
SECOND CHANCE EDUCATION SCHEME - 10,000 PLACES
Back to Education scheme targeted at youth unemployed with no Leaving Cert or non-construction qualifications. Participants would get 2/3 of the minimum wage as well as a cost of education allowance of €500 per annum. A bonus of €3,000 will be paid on completion of the qualification.
APPRENTICESHIP GUARANTEE - 700 PLACES
We would mandate the OPW to take on redundant apprentices for direct Labour projects carried out by government and local authorities.
COMMUNITY EMPLOYMENT (CE) SCHEMES - 5,000 PLACES
We will increase the number of CE schemes by 5,000. Priority will be given to young people who are unemployed.
OTHER JOB PLANS
Fine Gael has produced a range of other ambitious and radical job creation policies across a number of areas such as job tax cuts, reform of the education sector and protecting the capital budget. For more information log onto the Fine Gael website at www.finegael.ie
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