Cut benefits and minimum wage, Ireland is urged.Byline: Aiden Corkery Political Reporter GENEROUS dole payments are discouraging dis·cour·age tr.v. dis·cour·aged, dis·cour·ag·ing, dis·cour·ag·es 1. To deprive of confidence, hope, or spirit. 2. To hamper by discouraging; deter. 3. the unemployed from going back to work, one of the world's leading economic bodies warned yesterday. In its annual report on Ireland, the OECD OECD: see Organization for Economic Cooperation and Development. also urged the Government to cut jobs in the public sector, reduce spending on health and education, introduce a property tax and consider cutting the minimum wage. The report came as credit-rating agency Fitch lowered its rating for Ireland by two notches, blaming the sharp downturn in the economy and the rise in national debt for the move. The lower rating means Ireland is considered a greater credit risk and makes it more expensive for the country to borrow money. In its own report, the OECD said that although the economy here will begin to recover late next year, there is a serious risk of continued longterm unemployment unless 'urgent' steps are taken. Secretary general Angel Gurria said that dole payments in Ireland are high by international standards and could put unemployed people Noun 1. unemployed people - people who are involuntarily out of work (considered as a group); "the long-term unemployed need assistance" unemployed plural, plural form - the form of a word that is used to denote more than one off reentering re·en·ter also re-en·ter v. re·en·tered, re·en·ter·ing, re·en·ters v.tr. 1. To enter or come in to again. 2. To record again on a list or ledger. v.intr. the workforce. 'Wages generally, because of the recession, are coming down. You can have a very dangerous rapproche-ment of the two levels and make it very dangerously unattractive to even want to work again,' he said. Brian Cowen Brian Cowen (Irish: Brian Ó Comhain; born 10 January, 1960) is a senior Irish Fianna Fáil politician and the current Tánaiste of Ireland. signalled that the Government would be pressing ahead with the E1.3billion cuts in welfare payments forecast in next month's Budget. The Taoiseach told the Dail that dole payments had increased as the economy boomed and therefore social welfare could not escape cuts in the downturn. The OECD report also points out that our E8.65-an-hour minimum wage should be looked at, adding: 'Public-sector wages should be reviewed independently in the light of the developments in the private sector and falling price levels, and wages and government employment should be reduced.' The OECD report forecast Ireland's gross domestic product would shrink by 7.5 per cent this year and 2.4 per cent in 2010. Finance Minister Brian Lenihan
A reduction in the quality rating of a security issue, generally a bond. A downgrading may occur for various reasons including a period of losses, or increased debt service required by restructuring a firm's capital to include more debt and less : 'While this is a somewhat disappointing development it is worth noting that Fitch has given us a stable outlook.' |
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