Enda Kenny (Mayo, Fine Gael)

The local Minister said yesterday that indigenous industry should be supported. This was not the case when many of the smaller traditional industries in County Meath went to the wall. Our export performance last year was the worst since 1974. Some 33,400 manufacturing jobs were lost in the last four years but the public sector has increased by 73,800. The cost comparative figures for Irish manufacturing industry as against Britain indicate the cost of electricity is 50% higher here, insurance is 20% higher, landfill costs are 350% higher and broadband is 10% higher. This places our manufacturing industry in a hugely uncompetitive position. These, however, are areas in which the Government has direct influence on the cost base. In the year from 2003 to 2004, for example, the cost of waste collection increased by 31%, water charges by 20%, local authority rates by 18%, energy by 18% and post by 13%. The Government has used the manufacturing sector as a silent tax collection system but this squeeze cannot continue.

The Government will consider the immediate establishment of task forces and so on. In a broader sense, however, its failure to deal with the competitiveness and cost base issues for the manufacturing industry places us at a severe disadvantage against competitors from other locations. One action the Taoiseach might take is to make a simple demand that the cost of no State-supplied service should increase by more than the rate of inflation in the next three years. This would provide some sense of stability for those planning their future here and those making a decision on whether to invest here.

As a serious factor for continued development of our economy, the Government should look seriously at the cost base pressures on the manufacturing sector. We have fallen behind completely in terms of research and development. Exports from Irish-owned firms have remained almost stagnant. In research and development, we are at less than a quarter of the OECD average. We are way behind in the areas which support development, including infrastructure, roads, broadband and energy. It is becoming increasingly difficult for people to make decisions to come here and for those who are here to compete internationally.

Given everybody's understanding of the strength of the economy, will the Taoiseach confirm what actions the Government proposes to take about the fragilities that clearly exist and the pressures upon the cost base applying to the manufacturing sector?

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