Dáil debates

Wednesday, 27 October 2010

Macro-Economic and Fiscal Outlook: Statements

 

7:00 pm

Photo of Liz McManusLiz McManus (Wicklow, Labour)

This debate presents a welcome opportunity to consider the economic emergency we face as a society. People are desperately anxious about the burden they face not just in the coming budget, but also for years to come. They are looking for leadership and direction from those charged with running the country.

I took the time to read the Taoiseach's speech closely. I was at a committee meeting when he was delivering it. I regret that there was not much in his speech to inform us as to how the Government intends to lead us out of the mess. The Taoiseach promised us there would be a clear plan but we were none the wiser by the end of his speech as to what plan he has in mind. Instead of offering a plan, the Taoiseach stated: "We must be hopeful, optimistic and energetic, and yet we must be clear-eyed, realistic and thoughtful." This reads like an extract from the Little Book of Calm. Such an entreaty is actually an insult, coming as it does from the man who, as Minister for Finance, led us blindly into a financial sewer largely created by him and his predecessor, Deputy Bertie Ahern. Today, instead of providing clarity, the Taoiseach gave us clichés. The people deserve strategic leadership in these dark times. Surely, if that is not on offer, they deserve decent rhetoric at the very least.

The lack of ideas on the part of the Government is deeply worrying. It has battalions of civil servants, experts and consultants to advise it on the way forward. However, there was nothing concrete in the Taoiseach speech about public finances, job creation or economic stimulus. The Government is clearly past its sell-by date and should be thrown out of office.

In desperation, Ministers and their spin doctors endlessly criticise the Labour Party for not having proposals. Today's debate has shown that, despite our limited research capacity on this side of the House, and the limited information provided to the Labour Party by the Government, there were more clear-eyed, realistic and thoughtful solutions in Deputy Gilmore's is speech than in any speech from the Government side. It is time for the media, in particular, to bury the canard about Labour not having policies and to start scrutinising the paucity of solutions emanating from Government Buildings.

We may be down as a country but we are not out. We have natural resources that can be harnessed to create jobs and get people off welfare. I refer to construction jobs in particular. The first step to recovery, however, must be a general election. A new Government with a mandate from the people will have the energy and drive to do what the current Government is incapable of doing.

We need a fresh start. The severe economic problems will still have to be tackled but the Labour Party in government will work more smartly to resolve them. There are opportunities. Curtailed funding will be a real limitation on future growth but if we change the way in which public policies are delivered, without necessarily spending extra money, we can deliver on growth and jobs. In the energy sector, for example, there are continual complaints about bureaucratic slowness in responding to innovation. The wave and wind sectors, particularly the offshore wind energy sector, are hampered by the lack of a strategic approach and a streamlined planning process. A recent study by the European Wind Energy Association showed that the onshore wind farm developers in Ireland experience average delays in planning of 33 months. They are required to contact, directly or indirectly, 14 governmental or local authorities on average before they can proceed. This is simply unsustainable.

Another renewable resource is geothermal energy. It is also held back by the lack of legislation, despite a promise made by the Minister of State, Deputy Conor Lenihan, that legislation would be published early this year. There is no sign of it yet and I doubt that it will be published until well into next year.

According to Forfás, the global environmental goods and services sector is expected to be worth $800 billion by 2015. This presents real opportunities for the economy to capitalise on the growth of the clean technology sector. In order to reap the benefits of the renewable energy revolution, there must be a co-ordinated, planned approach to maximise potential. We need a new Government but also a smart one.

I was struck by the extent of the measures and proposals made today by the leader of the Labour Party in his speech, but the key must still be job creation. The bulk of people who are unemployed have skills, many in the construction sector. Thousands of them could be put to work immediately if the Government lived up to its own commitments. In his budget speech of 2009, the Minister for Finance, Deputy Brian Lenihan, promised a national retrofit programme. There is still no sign of it although we are now approaching the 2010 budget. Thousands of people could be put to work under such a programme and energy bills would decrease. Energy efficiency would increase in every home, school and hospital if the Government had the drive and focus to deliver on its promises.

If one looks at the record, one will note circumstances are worse than one might imagine. The reality is that the Government could not even spend the money that it allocated for energy efficiency programmes last year. Some €35 million was handed back into the maw of the Department of Finance at the end of 2009 because the Minister for Communications, Energy and Natural Resources, Deputy Ryan, a Green Party Minister, was not up to the job of delivering on his own policy of energy efficiency.

We must ensure that our competitiveness is not hampered by a lack of IT infrastructure. The Minister, Deputy Ryan, promised a one-stop shop to enable the development of fibre connectivity across the country. It does not cost money and only requires Government intent, yet it has not materialised. Broadband speeds are disturbingly poor in large parts of Ireland, that is, in the parts where broadband is actually available. Good regulation, targeted investment and streamlined public processing can make a real difference in the growth of information technology.

All the main parties in the House agreed to the framework for reaching a reduction in our deficit of 3% by 2014. There will be hard decisions to be made but, as Deputy Eamon Gilmore said, they must be the right hard decisions. The first that should be made should be to allow the people to exercise their electoral mandate and choose who will govern them in these challenging times. This is the first stimulus we need to see to ensure we get the good governance, forward thinking and clear plan this country so desperately needs.

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