Dáil debates

Wednesday, 2 April 2008

7:00 pm

Photo of Joe CareyJoe Carey (Clare, Fine Gael)

Over the years, this Chamber has paused to take stock of where the economy is and where Deputies want it to go. For example, I refer to the efforts of the former Taoiseach, Seán Lemass, and Dr. T.K. Whitaker to open the Irish economy in the 1950s. Similarly, a former leader of my party, Alan Dukes, adopted the Tallaght strategy in the 1980s to help a minority Fianna Fáil Government to regain control of the public finances. It is time for further reflection of that nature if we are genuinely to plan for the future. The former Deputy, the late John Kelly, once said that the Irish economy is like a sow being slowly devoured by her piglets, who are gorging themselves with no thought of the future. This country has moved on from such rural imagery. Nowadays, we might say that the manner in which we are dealing with our economy reflects our obsession with style over substance — our desire for "quick fix" solutions. We think everything can be sorted out by means of cosmetic surgery, without any need to deal with the fundamentals.

Many Members have spoken about the job losses in their constituencies. There have been significant job losses in County Clare at Aer Lingus, Tyco Electronics, John Crane Limited and Thompson Financial. Some companies have put their workers on a three-day week because they are unsure of their futures. The number of people on the live register in the county increased from 4,249 to 5,072, or 19.4%, in the 12 months between February 2007 and February 2008. Such a rate of increase has not been seen for a long time. There is nothing to indicate the rate of unemployment, or the overall number of people on the dole, will abate in the near future. The region's economic balance was severely undermined by the Government's decision not to use its 25% stake in Aer Lingus to stop the recent transfer of Shannon Airport's Heathrow slots. The Government has walked away from the promise it made before last year's general election to allocate €53 million towards the well-being of the mid-west. That figure became €3 million overnight.

Presentation is of paramount importance for the Government. It does not engage in any analysis, consideration or planning of the future. Such an approach is fine in the short-term — from election to election — but when the Government's record is analysed by historians over the longer term, the conclusion that will be reached is that huge opportunities were squandered without anything to show for them. This country was fifth on the international competitiveness league table in 2000, but it had fallen to 22nd by 2007, primarily because of high costs, inflation and poor infrastructure. There has been a shift from economic growth driven by exports and productivity to domestically driven growth that depends on new jobs in construction and public services. The swift downturn in house building has had as significant an impact on the economy as the growth in construction some years ago. We have to pay for our public services from a dwindling income. The number of people working in the public service has increased by 160,000 since 2000, without a discernible improvement in service provision.

The Government needs to make an explicit commitment to introducing the necessary reforms that will ensure swifter delivery of national infrastructure projects, particularly communications projects such as the roll-out of broadband services and transport and education projects. The Government must move beyond its rhetoric about the knowledge economy to the development of an actual knowledge economy. This involves supporting investment in next generation broadband networks rather than merely maintaining its regulatory role. Small and medium sized enterprises can be the engines of job growth in our economy. Ireland needs to enter a new phase of economic growth, in which it regains its international competitiveness. If Ireland is to return to the forefront of international trade, we must display a commitment to promoting a competitive business environment, a responsive public sector and a political system that can make decisions. I support the motion before the House.

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