Ireland's Unemployment Rate hits 6.7%-FG motion in Dail

According to the CSO, Ireland's unemployment rate now stands at 6.7% of the labour force, up from 4.6% this time last year. These horrendous figures were announced today.The Live register shows a seasonally adjusted increase of 15,800 during October. Ireland's deficit stands at 7% of GNP.

An FG motion in the Dail tonight calls for the following:

"The Government must overhaul FÁS and provide a public works scheme for the unemployed. We need to restore competitiveness and support business, especially small/medium enterprises. We can do this by freezing Government charges such as rates and development levies; bringing down utility costs for electricity, gas, water and telecommunications; investing in infrastructure, in particular broadband, road and rail; cutting back red tape; reversing the hike in VAT; suspending the pay deal; consolidating labour law and abolishing anti-employment provisions such as double pay for Sunday working in the catering sector, and crucially wasting no further time in recapitalising the banks so that business, large and small, can get credit."

The deficit has not been brought under control. A mini budget is likely in July of 2009 after the local elections to arrest the slide. Further cut backs may drive the economy into a deeper recession. Meanwhile unemployment will surely hit 300,000 by mid 2009. Looks like Hobson's choice for the government. The FF/PD government could have reined in public expenditure in the run in to the 2007 General Election. Instead it permitted a growth of 25% in public expenditure over two years. It might even have won the General Election without this. Now it may pay a heavy political price.Three rocky years lie ahead if we are lucky. Hopefully the fall in interest rates and fuel prices may offer some small respite.

Fine Gael beats FF into second place in RedC/Sunday Business Post poll

The Red C poll in tomorrow's Sunday Business Post shows that for the first time since polling began, Fine Gael is 7% ahead of FF.

This public opinion poll however comes with a health warning. Red C carried out their monthly poll for the newspaper on Monday, Tuesday and Wednesday - at the height of the medical card controversy. In addition opposition to education cutbacks had begun to gain momentum. The IFA has begun a campaign against cutbacks in agriculture whilst the closure of army barracks has spawned further opposition. Unemployment has risen sharply and will continue to rise in the immediate future. The increase in health charges is highly unpopular. VHI charges will also rise as a consequence of budget decisions. The underfunding of local authorities will cause a sharp rise in rates and water rates. In addition a supplementary budget cannot be ruled out- probably after next Summers Local Elections.

A fall in support for FF is not unexpected. However the scale of the fall is rather surprising. The party is down 10% to 26%.FF has shown a capacity to recover in the run in to General Elections. However the harsh decisions required to put the economy on a firm footing may sap the party's energy somewhat. The results are hugely encouraging for FG and Labour. However both parties must convert this support into votes at the ballot box. FG will underestimate FF at its peril. Prior to the 07 General Election FG rose sharply in the polls but fell back in the final week of the campaign.

• Fine Gael 33% (+5%)
• Fianna Fail 26% (-10%)
• Labour 15% (+6%)
• Greens 6% (-1%)
• Sinn Fein 10% (+1%)
• PDs 2%(-1%)
• Independents/Others 8% (+0%)

Just 23% of those polled said they were confident the Government could manage the public finances out of the recession, down 19% since last month, while 59% said they were not confident and 21% said they did not know.