Press release
Tuesday 11 November 2008
For immediate use

Tories making headlines on the hoof – McNulty

Tony McNulty MP, Labour’s Employment Minister, responding to the Tory announcement on unemployment said: “This is desperate stuff from the Tories, who continue to scrabble around trying to find a coherent economic policy.

“There is no way they can get 350,000 new jobs out of these proposals. There are too many restrictions being applied, the incentive is too small and many of these ‘new’ jobs will simply displace other people seeking work.

“In addition, the Conservatives just cannot pay for this tax cut – it is misleading of Cameron to say he can pay for getting the short-term unemployed back into work by using figures of savings you would make from the long-term unemployed.

“Osborne’s judgment is wrong yet again. They are making headlines on the hoof and they will be found out. “They need to make their sums add up – particularly at such a difficult time for the global economy.”

ENDS
Editor’s notes:
1. Their figures on how many jobs would be created are complete fantasy. The Tory plan assumes that an employer would create a new job for someone unemployed for more than a year for just £2500. The Tories have failed to take account of the displacement of workers who would have gotten jobs anyway. Currently 60% of people come off job seekers allowance within three months – this number would drop dramatically under Conservative proposals as employers would be incentivised to overlook people who have been out of work for 13 weeks or less.

Hat-tip : Bloomberg