Figures for company collapses in 2011 further testimony of the failure of austerity
Government's projected savings of €185 million from cut in employer redundancy rebate indicates FG/Labour expect over 40,000 further private sector job losses
Effective state ownership via NAMA of companies like Vita Cortex should result in production being maintained and jobs saved or created
Responding to the research produced by Vision-net which looked at the impact of the crisis on private companies last year Joe Higgins TD said
"The figures provided by Vision-net regarding the closure of 1,930 private companies in 2011 up to November amount to further testimony of the failure of austerity. That this figure was 20% up on 2010 and also given the fact that this government is persisting with a strategy of austerity it is blindingly obvious that this trend will continue.
"The most high risk sectors according to the research were hotels, bars, retail and wholesale, in other words those sectors most sensitive to the spending power of low and middle income workers. This backs up our contention that the cutback approach of successive governments and unfortunately advocated by the representatives of small employers is totally self defeating. "
Clare Daly TD said:
"The government themselves have indicated that they expect at least 40,000 job losses in the private sector over most of 2012 and the whole of 2013. We know this because they have projected €185 million in 'savings' over this period by cutting the employers rebate for statutory redundancy.
"We can extrapolate from 2010 figures (figure for all of 2011 are not yet available) based on the average rebate per worker made redundant that almost 39,000 will receive statutory redundancy from the time the reduced rebate comes into effect until the end of 2013. If one takes into account those workers who won't have worked the necessary two years to avail of statutory redundancy you are looking easily over 40,000 job losses based on the government's own figures."
"This shows that in reality they don't even believe their own propaganda about creating the conditions for jobs!"
Joe Higgins added:
"The United Left Alliance proposed a range of job creation measures in the run up to the budget centered around an emergency programme of public works. The Socialist Party in addition to this calls for the nationalisation of firms threatened with closure or widespread job losses.
"Take Vita Cortex in Cork for example which was a viable firm with a full order book but because of their employers entanglement with NAMA have been sacked in the most outrageous manner . The workers are demanding their statutory redundancy which is their right. However I ask the question, why must this firm which is already in effective state ownership close?
"Instead production could resume under public ownership but under the local control and management of those workers who want to hold on to their jobs and likewise employment opportunities could be created to fill the vacancies of those who want to take the redundancy. These proposals will meet with predictable scoffs from the government and their supporters in the media but I say to them that this is the only adequate response to the jobs catastrophe they preside over."