Steps must be taken to move the economy away from its over-dependence on construction and borrowing if recession is to be avoided, Siptu president Jack O'Connor has warned.
In an address to Ictu's biennial conference in Co Donegal today, Mr O'Connor said there were limitations to economic growth is based on consumer spending and the construction boom, both of which were credit led.
Ireland's economy must move away from its reliance on construction - Jack O'Connor, Siptu. Image: Cyril Byrne.
He said there were already strong indications that economic prosperity was evaporating in the face of accelerating interest rates and inflation.
Mr O'Connor told delegates in Bundoran that policymakers should shift their focus to upskilling of the workforce and curbing the greed of wealthy groups such as developers, who threatened to undermine our competitiveness.
He said: "The authorities keep telling us that inflation is principally due to appreciating interest rates. That is true, up to a point, because of the weighting afforded to mortgage interest in the calculation of the CPI.
"But this is not because of interest rates . . . but rather because of the enormous loan burden imposed on ordinary citizens.
Mr O'Connor said: "This is directly attributable to two key policy failures on the part of Government over the past ten years - the failure to regulate the price of building land, compounded by the abysmally inadequate provision of social and affordable housing."
One of the country's largest trade unions, Mandate, is expected to call for a crackdown on the buyout of companies by private equity investors.
Mandate insists the growing number of such investment takeovers is posing a huge threat to job security and conditions.
Union general secretary John Douglas will call for the strengthening of laws governing the often short-term ventures at the conference.