Bertie Ahern (Dublin Central, Fianna Fail)

We are going to get unemployment. FÁS and the other agencies have already put in place integrated support services for those made redundant and those who might lose their jobs in the construction sector. When we saw this coming a year ago we moved on that. It involves information sessions, skills analysis, training, retraining and courses in job replacement. In delivering those services, FÁS has been working with Enterprise Ireland, the IDA, and city and county enterprise boards. All that is already in place. Over the next few years, the Government has earmarked over €7.7 billion in public funds to support training and skills development in order to maintain as many people as possible in various sectors.

Last year, a forecast published by FÁS and the ESRI predicted that 90,000 to 100,000 skilled building workers would be employed by 2012 compared to 85,000 in 2005, so it is not the case that such people will not be needed. All the indications from FÁS and the ESRI show that all of those will be required, although they may move around to different sectors. Over the past three years, we have seen an increase in the number of non-Irish involved in these sectors. A large proportion of those are mobile and we can see what is happening in that respect with a number moving to London to work on contracts in preparation for the Olympic Games there in 2012. That will continue to occur as our construction industry moves around to fulfil contracts, so the market economy will not change.

Yesterday's figures showed a downturn in construction and related areas, particularly regarding capital gains tax which fell quite sharply. This means that in the final quarter of last year development deals in this country dropped fairly dramatically, by probably close to 40%. We must ensure that we can keep other areas of the economy growing as strongly as we can. There is no doubt that will create budgetary difficulties for us. With less revenues as the year goes on, it will create a tighter position which we will have to manage. In the interests of keeping the economy strong in the medium and longer term, we will have to do that. It is the right thing to do regardless of how difficult it is.

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