Oireachtas Joint and Select Committees
Wednesday, 16 July 2025
Joint Oireachtas Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation, and Taoiseach
The Impact of Tariffs on the Irish Economy: Nevin Economic Research Institute
3:00 am
Gerald Nash (Louth, Labour) | Oireachtas source
I have a number of questions and observations. Dr. McDonnell referenced the potential for an expanded shore scheme or a European globalisation fund-type initiative in response to the potential impact of certain forms of tariffs on the European Union economy. Dr. McDonnell will be aware that NERI, the Irish Congress of Trade Union and I have said repeatedly - probably since we were staring down the barrel of a difficult Brexit - that the system should consider the establishment of a modernised short-time work scheme, which we could take from the shelf and customise on a sector-by-sector basis to ensure that, in the event of short-term economic shocks that may have particular impacts on certain sectors, we could respond by providing a certain kind of investment to keep, in this case, highly skilled workers close to their employers at a time of economic turbulence, where that responsibility would be shared between the State and the employers. There would be a degree of surveillance and monitoring, arguably by the trade union movement. This happens in Germany with the successful Kurzarbeit scheme. The Taoiseach informed me a number of months ago that he would be happy to consider such a scheme. I have heard nothing since. Whether it is in the context of these tariffs, or the threat of these tariffs and the impact on the economy, or any future threats that might arise, this would be a good public policy response. It is one of the reasons Germany did not suffer deep scarring in terms of Great Recession. It is one of the reasons we still have a shortage of construction workers. We lost those workers when the economy collapsed in the late 2000s into the early 2010s when there were no supports to keep people here and close to their employers and we had to roll through that particular set of circumstances. Does Dr. McDonnell agree that a short-time work scheme, one that is modernised, fit for purpose and potentially funded through the Social Insurance Fund and-or the excess in the National Training Fund, for example, be worthwhile? It is something that IBEC is interested in as well.
No comments