John O'Mahony (Mayo, Fine Gael)

I am glad to have the opportunity to speak on this Fine Gael Private Members' motion and I commend Deputy Varadkar on bringing it forward.

It is only nine months since the Government told anyone who wanted to listen that the boom times would continue into the future and that the country needed its steady hand to guide it. We now know that the real truth is different. A few months later, we know that the property boom is well and truly over, unemployment and inflation are increasing and we are rapidly losing our competitiveness when compared to our European neighbours.

What is making our economy particularly vulnerable is that the expansion in the early part of this decade was based on unsustainable, debt-driven growth in construction and public services whereas the good times in the 1990s were export-led and productivity-led. Ireland now has the most highly indebted households of any EU member state. The excuse is often trotted out that our rising inflation is due to external factors such as higher energy costs and the like, but it must be remembered that our strong euro against the dollar has cushioned us to a great extent in this area. According to CSO data, 53% of inflation since 2002 in Ireland has been caused by indirect increases and price rises in Government administered and regulated services. What is needed as a response to our deteriorating situation is to expedite the development of our country's national infrastructure, particularly in communications and transport.

Competitiveness and, therefore, jobs are directly affected by the snail's pace roll-out of broadband here. Widespread availability of broadband would attract equal opportunities for businesses throughout the length and breadth of the country to compete for jobs, particularly in rural areas that are seriously disadvantaged because of poor physical infrastructure.

Recently I heard that a person who had relocated to a rural village in Mayo from England for a better lifestyle is considering moving back to England as a result of losing contracts because broadband is not available there. We seem more intent on stopping rural dwellers cutting turf on bogs than supporting them in business. We will not let them carry on doing what they have done for hundreds of years but we are preventing them from moving into modern times. The Government cannot have it both ways.

There is no reason this country should be in its current position. The profits of the good times have been squandered while our physical infrastructure is nowhere near the standard needed. In Mayo we are looking into the distance for the completion of the N26, N5 and many other routes. Work on the western rail corridor is moving at a snail's pace and Ireland West Airport in Knock needs increased support as it has enormous potential.

My region is suffering mounting job losses in Portwest in Westport, Dawn Meats in Ballaghaderreen, Contract 4 call centre in Achill and APC in Castlebar, an industry brought to the town by Deputy Kenny many years ago. If we are serious about arresting the current downturn in the economy, the delays and cutbacks in the implementation of our major infrastructural projects must be stopped. We need them now more than ever. In many cases it is not that the money is not there. For instance, the Minister, Deputy Ryan, transferred €10 million from funds intended for broadband investment.

As I was driving to the Dáil this morning, I got a telephone call from a person who has a company based in Mayo which went into liquidation in the past few days resulting in the loss of 20 jobs locally and many more jobs countrywide and in other countries. These people need to know that the economic climate is being created here with the necessary business support structure to prevent a bad situation turning into a crisis. We need action now. I strongly commend this motion to the House.

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