James Bannon (Longford-Westmeath, Fine Gael)

I support this motion which highlights the rising level of unemployment that is threatening our economic viability. A staggering 187,000 are currently on the live register, of whom 16,300 account for the huge increases in January and February of this year — that figure is expected to be higher when the March figures are published on Friday. This is indicative of the rapidly increasing level of unemployment throughout the country, which is hitting every community. In my constituency of Longford-Westmeath, a devastating blow was dealt with the closure of Nexans Ireland. Ninety-six jobs were lost and workers and their families who have been associated with the company for many years were devastated. I call on the Minister to ensure retraining is put in place for these workers, who are facing an extremely uncertain future, and that a generous redundancy package is secured.

What efforts did the Minister make to save these jobs in Athlone and how does he propose to attract new jobs to the midlands? Only three companies have moved into the midlands in the past ten years and new investment is urgently needed. The re-investment of €30 million in C&D Foods in County Longford is welcome, but much more needs to be done to attract new jobs to the area. Announcements such as that in regard to Nexans Ireland are shockingly common and are an indictment of the Government's failure to tackle spiralling business costs and falling competitiveness. Basic costs must be addressed so that businesses are not forced to move out of Ireland to retain a competitive edge.

Ireland's economic competitiveness has fallen 17 points since the Minister, Deputy Martin, came into office. The standardised unemployment rate now stands at 5.2% nationally, the highest level in seven years, and is predicted to rise by more than 6% to a nine-year high by the end of the year. As a representative of a rural constituency, I am only too aware that the direct impact of job losses is most strongly felt in the farming sector. Farmers are being driven off the land and out of the industry by falling prices, lack of guaranteed markets and the excessive bureaucracy brought about by the Minister for Agriculture, Fisheries and Food. In recent years, Longford-Westmeath has seen job losses of almost 150 at the Lakeland Group, which followed as a direct result of the Government's failure to maintain adequate price structures and support for farmers. The cattle markets in Edgeworthstown, Mullingar and Moate have closed and other enterprises are under threat.

If it is to increase employment opportunities in the farming sector and retain workers on the land, the Government must provide the best possible education and upskilling opportunities for farmers. This is the key to providing agriculture with a competitive advantage. The midland counties are starved of infrastructural investment with a shameful underspend in BMW funding. However, this money seems to find its way back into the Exchequer each year and the Government persists in failing to meet its obligations to provide essential infrastructure and thus increase the attraction of these counties for investment.

Much could be done to improve rural development through prioritising high-potential projects. Longford-Westmeath, although perfectly situated in the centre of the country, is losing out on major international investment due to the poor state of its infrastructure. This infrastructural deficit is to the detriment of its economic development. It highlights the failure of the national spatial strategy, which is perhaps the largest scam perpetrated by the Government. Balanced regional development is a myth we have been sold by the Government as a reality. Longford-Westmeath is getting less than its fair share of State-assisted jobs — less than 2%. Employment can be created in this area by attracting new industry to Longford-Westmeath, creating off-farm and rural employment opportunities, providing additional funding to encourage indigenous industry, advancing the decentralisation programme and securing existing jobs.

Throughout the country, thousands of untrained workers were drawn into the construction industry during the boom years. Their futures have been dismissed by the Government as the big freeze in the economy begins to hit home and little provision has been made for their upskilling and retraining. The long-term sustainable pace of housing output is approximately 50,000 units per annum. From 2003 to 2006, this output was exceeded by a total of 120,000 units, an increase that could not be maintained. This explains the current decrease in construction industry activity and employment.

The Government is lacking an industrial strategy of low taxes and high skills. It deserves strong criticism for its part in facilitating encroaching inflation and lack of competitiveness. The Government has lost the plot and is failing to achieve and maintain a high rate of labour force participation, which is critical to the continuation of the economic strength that Ireland has experienced. Regions and rural areas are bearing the brunt of State-supported jobs being channelled into our largest cities. Such State support has failed to impact on the rural areas where it is most needed.

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