Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

This is a very important debate. It is time for all of us to tell the truth about the economic recovery and not to hide behind the sort of speeches I heard coming from the Opposition a short while ago. Nothing makes reality clearer for anybody who has suffered under the recession than their actually getting a job. Moving into employment makes a huge difference to that home and that local economy, and how they feel and how they face the world every day. The reality is that this Government policy is working. In the constituency of Louth from where I come, in the month we were all elected to the Dáil, there were 17,356 unemployed. This month that has reduced to 13,844. In County Louth there are 3,512 more people working today than there were on the day we came into office. That is clearly a very significant and welcome development.

In County Louth in 2010 there were 1,322 people working in IDA Ireland client companies and this week it was 3,029, a doubling of the figures and extremely welcome news for us all in that county. Of industrial FDI, €1 in every €10 is coming to county Louth. In County Louth in 2010 there were 4,885 people in Enterprise Ireland client companies and last year it was 5,434, which is again a significant increase. It shows that Government policies are working. People are getting jobs. Families are better off. People have more money in their pockets. They are feeling more secure in their employment. They have greater confidence in the future. More businesses are being set up. That is the reality and the truth.

Obviously it is not enough and we need much more investment in job creation throughout the country. However, the trend is in the right direction. This is a point at which the whole economic situation has clearly changed for very many people. It is a turning point in our economic cycle and clearly the Government policies are working. People have more money in their pockets now in terms of the tax they are paying because we have reduced the highest rate of tax and we will continue to reduce it. The Government has announced that whatever Government is in power over the next five years - we hope we will be returned to office - there will be more reductions in income tax, more reductions in the USC, and more investment in new schools, health centres and other essential infrastructure.

The discussion has commenced on public sector pay. Clearly increased social protection will be important. We have faced challenges over the past ten years. More than 500,000 new people have come into the country. We have the highest proportion of young people under 15 in Europe. We have the highest fertility rate and we have more people living longer than ever before. Many things are changing in our economy and with our people, and we are dealing with them in the appropriate way.

The increase in the number of older people will mean that for every year up to 2021 we will need to invest €200 million per year in services for older people. By 2021 will also need 3,500 new teachers to look after the 50,000 additional second level pupils in our schools and the 20,000 additional third level students. At the end of all this will be much greater employment. The Government has committed to full employment by 2018.

We now need to improve the social infrastructure, in particular in my constituency we need to deal with the significant issue of social housing. Every day in my office I see people who are concerned that the rent allowance is not adequate for them and the Minister needs to tackle this. I welcome some flexibility in this matter that depending on the size of family the cap can and must be changed. However, there is a significant shortage of housing anyway. Notwithstanding the Government programme to build more housing in County Louth, which I welcome, it is not enough over the period of time that we face now.

While there is land zoned for housing in County Louth there is a significant necessity for the local authority to fast-track planning applications. I have spoken to the new chief executive officer in our county and she is top class in every way. I have asked her to be proactive in encouraging more people to get involved and build the houses that are so badly needed. Assistance offered by the local authority through pre-planning meetings and encouragement to people to invest and build certainly represents the way forward.

I listened to Deputy Ross. However, he did not mention that at the height of the disastrous economic situation which was brought about by the bankers and the Fianna Fáil-led Government, our ten-year bonds, which are critical for future investment for any Government, had a yield of 14% and that is now below 1%. That is very significant.

The deficit - the amount by which we were overspending - was €15 billion a year when we came into office. That was €15 billion of money we did not have. We have reduced that deficit to €4.5 billion a year, which is still significant, but we hope to have it below 2.3% this year so that we will be in a position to balance our budgets in future.

Between €1.2 billion and €1.5 billion will be provided in this year's budget to cover tax reductions and expenditure on social and economic infrastructure. The public has suffered greatly, but poorer families suffered more so because they have smaller incomes on which to live. This Government will not only make work pay but we will also help those who rely on fixed incomes, pensions or disability benefits. As the money begins to come back into the economy, it is incumbent on us to ensure their boats also rise. That is the balance we must strike between job creation and social protection.

It is only by putting people back to work that the economy will improve. If we take 10,000 people off the unemployment register, we can save €98 million. That is money the taxpayer does not have to provide to keep people on social welfare. The income these people earn and the tax they pay will bring huge benefits to the economy. This Government is on the right track and this is the right time to be having this debate. The time has come and the change is here. It is our job now to ensure the budget delivers on our commitments.

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