Michael Finneran (Longford-Roscommon, Fianna Fail)

I compliment the Minister of State, Deputy Michael Ahern, and his Cabinet colleague, Deputy Martin, on introducing this Bill. It deals with investment funds, updates our position on company law and brings us into line with Europe. While part of this relates to dealing with European directives, it has also come about because of the country's success. This country has moved forward with such great strides that it is envied by democracies across the western world. We should not take for granted that these circumstances will remain in place no matter what happens. It would be terrible folly for people to believe this.

The most important factor in bringing the country to this level was strategic Government policy over a number of years that supported investment and enterprise and gave entrepreneurs the opportunity to create employment and wealth. This did not happen by chance but came about because senior figures at departmental and Government level created a playing pitch that allows the country to move forward in the manner we have seen.

There is another reality in that we cannot take for granted that that will be the case into the future. We do not have to reflect back too far to see what happened in this country. I am talking about the 1970s and 1980s. In the marts and fairs in the midlands and the west, people left their stock behind them in the towns because they could not sell them. They did not bother bringing them home. I remember coming out of the mart in Ballinasloe and seeing 17 calves on Society Street that nobody owned. Those are the facts about what happened in our country not many years ago.

Irrespective of what happens, we must not take for granted that the wealth available to the Minister for Finance today to look after the interests of our people, particularly those who are less well-off, will be readily available to him. That is not the case. Young people may not understand what I am saying but those facts must be stated. In the past ten or 12 years, this country has experienced an unprecedented level of growth, as much as 10% in some cases although it is down to 5% now. That is without parallel in Europe or the western world. There may be some examples in Asian countries whose economies do not have the transparency or democracy we enjoy.

That is a reality check for the Irish people when they go to the polls in May or June. I am not making a party political statement with a view to pointing a finger at any Opposition representative. I very much appreciate the constructive contributions of the Opposition spokesman on enterprise and employment, Deputy Hogan, who is in the Chamber, but some Members regularly make contributions in which they take for granted that the moneys coming into the coffers of the Department of Finance will continue to come in irrespective of Government policies. That is a myth.

This debate is about investment funds. We are talking about an increase of asset-backed security investments from €6 billion in 1999 to €80 billion today. Would any Member of this House say that happened by chance or that it fell our way because we are a little green island on the verge of Europe? That is not the case. It happened because many years ago people brought forward policies and legislation to underpin investment, set up the financial services sector by the Liffey, give entrepreneurs an opportunity to start their own businesses and provide security to people in terms of their investments. That is the reason it happened. The people at home and abroad have brought us to where we are today.

An additional 1 million people are working in this country. Why do people flock to our shores? Is it because they believe we are good for a cup of tea or will say hello to them on the street? That is not the reason. They are here because they can make money for themselves or to send to their families in eastern Europe, Brazil and elsewhere. Those people have fuelled our economy. They came here because our economy is able to absorb them and give them an opportunity, and they are making a return to our economy in the taxes collected by the Department of Finance. Deputy Finian McGrath said that the Government should give various benefits to people, but we can give nothing if the money does not come in. If the finances are not returned to Merrion Street, the Minister, Deputy Cowen, or the Government cannot give it out. The only way it can do that is if those in employment pay their taxes and by people investing and becoming involved in the further development of our country. That is the reality check I spoke about on which we must remain focused. I am concerned about statements made by some people, who may or may not be in Cabinet positions after the next general election, in terms of what they will do in that regard, but they can do nought if the money does not come into the Department of Finance.

The legislation before the House is welcome because it reflects where we are as a nation. It reflects on our success and our ability to become the envy of Europe in terms of opportunity in enterprise and employment. The circumstances that allowed that are as a result of good, strategic policies by excellent civil servants and Ministers over a period.

The provisions in the Bill are many but what is their purpose in layman's terms? They are to relieve the burden of regulations, facilitate business development, provide solidarity for our competitors and give effect to European Union directives. We are sometimes criticised because of our rush to meet EU directives but in the financial and investment areas, it is important we have a clean sheet. We have a clean sheet in the eyes of the world, and that is very important. If we are to keep up to speed as regards financial activity and investment, this legislation is necessary.

This country has an acceptable common law practice that always has been supportive of the business environment. We have the best entrepreneurs compared to those in any country worldwide. Ireland is a country to which other countries look up. I am a regular visitor to the United States. My family's background is in the financial sector in the United States. My father was the first of his generation born in this country and I have kept close links with the United States all my life. I am always amazed by the compliments paid to young Irish graduates and businessmen and women on the way they take on new challenges in IT, finance, business and enterprise. We should not be slow to compliment ourselves on the ability of Irish people in that regard.

Mention was made by some speakers of the voluntary sector on which I want to comment. Some years ago I became fearful that the voluntary sector would disappear and that people would not come forward to become involved in voluntary bodies and organisations because of our rush to live the high life in this affluent State. I am pleased to say I was wrong because Irish people are as concerned with and committed to the voluntary sector as they ever were. As many, if not more, people as before put themselves forward to act as committee members or officers of voluntary organisations. It is important that the State recognises and supports this voluntary effort.

The voluntary sector finds it difficult to deal with regulation and bureaucracy. In some cases small grants have become albatrosses around the necks of voluntary organisations. It is now a painful task to deal with a small grant from a State organisation. I refer to county enterprise boards and Leader boards. Voluntary people are involved in these matters yet the most qualified accountants and legal support people would be needed to assess and draw down grants. We have gone overboard on regulation in this area.

The Minister of State at the Department of Enterprise, Trade and Employment, Deputy Michael Ahern, keeps his finger on the pulse of his constituency. He would not be in this House for the past 20 years if that was not the case. We must examine how we treat the voluntary sector. We rush to support it with grants but we hamstring it when it tries to draw them down. Some years ago lottery grants were a simple matter for GAA clubs, soccer clubs and boating clubs. Now, the Office of the Chief State Solicitor has its claws in the process. The paper trail involved in drawing down a sum greater than €50,000 is unbelievable. These people are gardaí, county council members, farmers or secretaries and are involved on a voluntary basis. The must try to draw down money invested in a local hall, pitch or sporting facility. Such regulation is the way to hunt people out of the voluntary sector. We must be careful not to exclude people from this area. They will wonder why they should endure such hassle on a voluntary basis, with Departments piling regulation on organisations for a few euro that contribute to the common good.

This Bill is necessary from a national and European perspective. Today's generation must reflect on the future. Can we maintain and improve on the level of income with changed policies? People will realise that it would be very difficult to return to the days when Irish people were taking the boat and had difficulties. These dangers exist unless we maintain stability of investment, enterprise, and employment. Otherwise we cannot support what I seek, namely, that the less well-off will have a better return after the budget. This legislation gives us food for thought in that regard. I compliment the Minister for Enterprise, Trade and Employment, Deputy Martin, the Minister of State, Deputy Michael Ahern, and his officials. I commend the Bill to the House.

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