Peter Kelly (Longford-Westmeath, Fianna Fail)

There is no doubt that the Irish economy is experiencing challenges during what has been an extremely turbulent year on global markets. Oil prices have soared and the repercussions from the US sub-prime issue have been felt across the Atlantic. These are global issues and global problems. The Taoiseach stated at the launch of Fianna Fáil's Lisbon treaty campaign that Ireland is the most internationalised economy in Europe. That is why the effects of these global problems, most of which did not originate on Irish shores, are being felt by certain sectors of the economy.

However, the concerns expressed about the Irish economy are premature. Today the ESRI published its assessment of the medium-term prospects for the Irish economy. The assessment was for the most part positive, with real GDP growth of 3% predicted over the medium term. This is much higher than the growth experienced by many of our European neighbours. The ESRI and the Minister for Finance agree that growth is likely to increase from 2010, which is the reason the Minister will be pursing sensible economic policies as we face more challenging economic times.

The fundamentals of our economy are sound. We are a small and open economy with a young and educated workforce. The policies pursued by Fianna Fáil-led Governments have ensured that Ireland continues to be an attractive place to do business. As the only English speaking country in the eurozone, our attractiveness to North America is unparalleled. Our physical proximity to Europe and our engagement with the European Union have been key to our economic success. It is not an exaggeration to say we have benefited more than most from the Single Market. Access to a market of almost 500 million consumers on our doorstep has transformed this country. This was emphasised today by the new Minister for Finance, Deputy Brian Lenihan, when he addressed the American Chamber of Commerce in Brussels. The Minister cited a few very impressive statistics there that I would like to mention. Foreign direct investment in Ireland exceeds €30 billion compared with €16 million in 1973 and is higher on a per capita basis than in any other European member state. Trade has increased 80-fold with consequent benefits for the number of people at work and the choice of products available to consumers. Our economy has been transformed with over 128,000 people employed in over 1,000 foreign-owned companies based in Ireland.

A "No" vote in the forthcoming referendum is the greatest threat to our economy in the long term. A "No" vote would damage our pro-European image and is not what investors around the world want to hear. There has been condemnation in the House about the recent slowdown in the housing market. The same people were talking about affordability in the marketplace and the problems faced by first-time buyers not so long ago. Approximately one third of the houses in this country have been built since Fianna Fáil came into office in 1997 and this rate, unfortunately, is simply not sustainable. We are experiencing more normal levels of construction in line with other European countries. However, after last year's general election and in the last budget the then Minister for Finance, Deputy Cowen, put in place a series of measures designed to support the housing market.

Globalisation presents us with challenges but also with many opportunities. To ensure lower-skilled workers are not left behind we are investing in upskilling and training. Providing further education, skills and training will enable those in the low-skilled sectors to move to the growing high-skilled sector. Through investment in human capital we will continue to advance along the value chain. The national development plan is providing €2.8 billion for the programme to upskill the workforce. This year some 67,000 people in employment will receive training through FÁS or Skillsnet funded programmes, an increase of 43% over the last two years. We are investing in graduates and are further developing a fourth level in our education system. Infrastructure is key to competitiveness. That is why we are investing so much in infrastructure. If we want to remain a competitive place to do business it is vital that the projects under Transport 21 and the NDP are implemented.

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