Beverley Flynn (Mayo, Independent)

I thank Deputy Mulcahy for sharing time. I wish to take up the point he and the previous speaker raised in regard to economic commentators talking down our economy. From my recollection, some economic commentators have been doing that for the past five years. I suppose if one keeps trying to talk it down every year, at some stage along the way one will probably be at least partially right.

While we are experiencing a slow down in our economy, it is a slowdown from a situation where we experienced growth of 4.8% in 2007. This year the Minister for Finance has forecast growth in the region of 3%. It is very important that we put this into context. Watching many programmes on the economic outlook for 2008 over recent weeks, one would think this country was on the verge of a recession which is far from the reality. There is no point, however, talking up the economy if the fundamentals are not there to support it. The success we have achieved, particularly over the past ten years, is acknowledged by other European countries and further afield, although for some reason we are not prepared to do so. Ireland as an economy is the envy of all other European countries. That has not happened by accident.

Other speakers said the Government is quite willing to take all the praise when the economy is booming but is not prepared to take on the responsibility when it is moving into a slowdown. The Opposition has never acknowledged the fact we have enjoyed wonderful economic growth for the past ten years because of the sound economic polices brought forward by the Government, which I applaud.

We are seeing a weakness in the property market. There have been significant losses, particularly in the area of construction, not only in my constituency but throughout the country. It must also be borne in mind that over the past number of years, we have relied on thousands of people coming from abroad to satisfy the demand for workers in this sector. We are coming from an all-time high and we are now seeing a slowdown in that area.

However, other areas and sectors in the economy are performing extremely well, particularly in the area of service exports, which continues to expand and shows great potential for the years ahead. As I said, this is down to sensible economic policies being practised by the Government and also a pro-business attitude.

I am delighted that this week we are focusing on what the people want us to focus on, that is, the economy and building confidence in it. These issues are relevant to the people and not some of the nonsense which has been discussed in this House over the past week.

Over the years Ireland has built a reputation as being a very attractive location for foreign investment. I am particularly conscious of this in my constituency in Mayo, where a number of major international companies employ 3,000 people and have more than €3 billion in exports every year. I am referring to companies like Allergan, which has just celebrated 30 years in the county, companies like Baxter, which has just announced an investment of €150 million, and other companies like Coca Cola. However, it is important that the economic environment is conducive to protect these jobs for the future. For example, Allergan announced the loss of 350 jobs in Wicklow recently. It is critically important that we do not take for granted the jobs that have been there for more than 30 years.

The Government should respond to the needs of these industries. While it is our job to try to attract new jobs into the country, it is critically important that we try to hold on to existing jobs. These jobs will only be supported by improved infrastructure in the regions. I have been critical in the past about the underspend on the BMW region, especially under the last national development plan. While some improvements have been made in this area, I am very conscious that over the next five years, massive investment in the regions along the west of Ireland must be put in place to address this imbalance that has occurred and to protect the growth and the jobs there against the odds. The Government must be responsive to the needs of these industries.

The types of projects I am talking about include the development of the N5. While there have been improvements in that road in the past few years, there is a 25 km stretch going through County Roscommon that is absolutely outrageous in this day and age. While I acknowledge that the motorways in the country are important, we cannot tolerate the starving of some parts of the country of valuable road infrastructure and thereby affecting industry. The money must be found. The N5 from Castlebar to Westport was a priority with the NRA seven or eight years ago, but it has slipped off the radar completely without even a date for construction. The N26 has a date for construction of 2010 and is the only national road in Mayo with a date for construction. There is nothing for the next three years, which is unacceptable. When we talk about balanced regional development, it affects all the counties in the region. We should not be leaving some of the counties untouched. The Ballinrobe bypass is not even on the radar of the NRA at the moment.

I am delighted that the western rail corridor has found favour with the Government, but it should be fast-tracked even further. The train service to the west is not acceptable. It is not acceptable that there are no canteen facilities on many days on the trains. It is not acceptable that the train from Westport comes into the worst platform in Heuston Station, where people, many of them elderly, must walk the length of a long platform to get on to a train. All the trains to other parts of the country go from the immediate platform within the station. Why has that been the case for the past ten years? Why can they not be rotated? There are obviously not enough platforms for all the trains, but this is not good enough.

I acknowledge the successes of our economy. In the past ten years there has been an average growth rate of 7%, which is one of the best performances of any country throughout the world. Employment has grown by 4% per annum over the past ten years and we are now in a situation where we have immigration into the country rather than emigration from it. It resulted in a great economic success and allowed the Government to increase public spending without putting a strain on public finances. We have seen major developments in the export sector, especially in the area of financial services, IT and chemicals.

I agree with the Minister's speech that the key areas to be addressed are human, capital, infrastructure, regulatory and public service reform, the maintenance of stable public finances and a pro-business tax system. These are the areas on which we must focus. I know that the Government is investing in third and fourth level education and I welcome that. However, I draw the Minister's attention to two projects I would like to see advanced in my constituency. Davitt College needs a sports hall and it is important that we look after the sporting activities of our education sector and not just the academic interests, especially given the fight against obesity. Davitt College has been looking for a sports hall for 30 years. The school was promised the hall 18 months ago. A commitment was given by the Minister, but it did not appear on the list of schools undergoing construction projects. I am confident it will appear on the list later this year, but it is a project that must be prioritised, as does the project for Gaelscoil na Cruaiche in Westport, which was also expected to be on that list. From speaking to the Minister, I am optimistic that it will appear on the list after Easter. These are priorities because education is critical if we are to maintain a skilled workforce in the future.

I mentioned the issue of infrastructural investment and I ask that the regional balance be upheld. I welcome some of the measures in the Bill, especially the changes to corporation tax aimed at small and start-up companies. These changes will make life a lot easier and there will be a smaller administrative burden for many businesses. I acknowledge the increases in the VAT registration thresholds, especially for small businesses in services and goods. I also welcome the extension of film relief. The Minister has increased the cap from €35 million to €50 million for investments in films, but it is a very valuable measure and will hopefully encourage further investments in films in this country. There is also a valuable individual relief for people who invest up to €31,750 — they will get 80% relief.

Section 41 of the Finance Act has brought in new measures on petroleum. This is for gas and oil explorations and it introduces a new resource rent tax on companies that received licences after 1 January 2007. This is particularly relevant in my constituency, where we had a very valuable find in the Corrib gas field off the Mayo coast and where many complained that the Government take in this kind of exploration was not as good as it should be. I acknowledge the measures introduced last year by the then Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, and the fact that these measures have been given effect in the Finance Bill.

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