The Government’s four-year plan, published today sets out the measures that will be taken to restore order to our public finances and identifies areas of economic activity that will provide growth and employment in the recovery, according to Minister for Defence Tony Killeen TD.
Our economy is showing signs of emerging from recession. GDP will record a moderate increase this year on the back of strong export growth, following a drop of approx 10% in 2009. The current account of the balance of payments will record a small surplus in 2011, meaning that the economy as a whole is paying down external debt. The Plan projects that the economy will grow 2.75% on average over the 2011-2014 period. It is expected that 90,000 (net) new jobs will be created in the period 2012 – 2014 and that unemployment will fall to below 10% by 2014.
The Plan purposes to cut public service staff numbers by 24,750 from 2008 levels back to 2005 levels.
The Plan balances new taxation measures in a way that is least harmful to enterprise while at the same time generating the required Exchequer revenue. The changes in the Plan will bring the income tax structure back to what existed in 2006, and not as some suggest to levels of the 1980’s. The plan commits to maintaining the 12.5% corporation tax rate which is a key component of our industrial policy.
In relation to the Department of Defence the plan provides for a cumulative reduction of €106m by 2014.
“It is acknowledged that an adjustment of this scale will significantly challenge the capacity of the Defence Forces to maintain the capability necessary to deliver effective services across all of the roles assigned by Government. We will seek to maintain the capability of the Defence Forces to the highest standard during this difficult period and I have every confidence that the Department of Defence and the Defence Forces will meet the challenge.” said Minister Killeen.
