TAOISEACH Enda Kenny warned that next Tuesday’s Government jobs initiative would not immediately solve the State’s unemployment problem.

He said TDs would discuss the initiative after Minister for Finance Michael Noonan had given the details to the House.

“I stress the fact . . . I make no bones about this . . . it is not going to sort out Ireland’s unemployment problem overnight,” said Mr Kenny.

It was intended, he said, within existing constraints, to provide an element of an injection into the economy which would stimulate growth, jobs and opportunities.

Mr Kenny said the initiative would be fiscally neutral and the Minister would point out how adjustments and payments would be made.

“I do hope, in the debate that will ensue, people will live in the world of reality and not in theory as to what we can actually do,” the Taoiseach added.

Fianna Fáil leader Micheál Martin said people were led to believe a definite economic stimulus would be provided when the Government entered office, but it was now to be a revenue-neutral initiative.

“It appears from what can be read from the spin of ministerial leaks that a number of the specific initiatives to be announced next week involve renouncing and rebranding initiatives that are already under way.”

Mr Kenny said it was perfectly obvious that jobs, job creation and an injection of confidence into the indigenous economy were a Government priority.

He was surprised, he said, at the range of ideas, some very workable and credible and others which were not, flooding in from various sectors throughout the State.

Mary Lou McDonald (SF) said the Department of Finance, in its latest economic update for the European Commission, had starkly stated the Government had achieved a growth rate as near to zero as one could get.

The unemployment rate was at crisis point, as the Taoiseach had conceded, and the domestic economy was in a mess, she added.

Yet the Government still pumped money into Anglo Irish Bank.

“Although the writing is on the wall, and it is now very apparent the austerity approach is not working and will not work, the Government refuses to wake up and smell the coffee,” Ms McDonald added.

She said the language being used in respect of the initiative was interesting.

They were now told it would be fiscally neutral, or revenue neutral, and that there would also be counterbalancing measures to give it life.