Willie Penrose (Longford-Westmeath, Labour)

I am pleased to make a contribution to this debate. In the short time available to me, I will make passing reference to the confluence of events that are threatening Ireland's competitiveness. For the first time in many years, our economy is entering a period of stagflation. My colleague, Deputy Burton, spoke at great length, with her usual prescience and accuracy, about the many serious social and economic issues this country faces at present.

The Government argues that the sharp increase in inflation over the past few months is outside its control. I accept that is the case for some products, such as oil — some inflation is domestically generated — but increases in charges for Government services, for example, have resulted from Government decisions. Recent increases in doctors' fees, dental charges and health insurance costs have hit people on lower incomes hardest. The same can be said about increases in food costs, such as the 17% increase in the price of bread and the 30% increase in the price of milk over the past year. Woe betide us all if the ESB gets its way and electricity costs increase by 30%.

The Government can do something about the failure of retailers, particularly the large multiples, to pass on to consumers the benefits of the falling value of sterling and the US dollar against the euro. The increase in the value of the euro is making our exports more expensive on world markets. We should be benefiting from a decrease in the price of imported consumer goods. If the Minister for Finance, Deputy Brian Lenihan, shopped for clothes in the usual retailers, he would see evidence of blatant profiteering on the part of retailers. In most of the multiple outlets, clothes are priced in sterling as well as in euro. If one converts the sterling price to euro, it is clear that the euro price is significantly higher. The National Consumer Agency urgently needs additional powers to end such profiteering. Surveys are no use. My grandmother — God be good to her — did that type of thing.

An aspect of the phenomenal growth of the past 15 years that is not often discussed is that most of that growth was due to increased inputs of labour and capital. In a sense, we were catching up after a decade of stagnation. It is well established that long-term growth in advanced countries depends on increases in productivity. However, productivity growth has slowed down in Ireland over the past five years. Reports from the National Competitiveness Council have shown that output per unit of input has been growing very slowly.

As we no longer have control over exchange rate policy or monetary policy — we have limited opportunities to set fiscal policy — we must rely on the competitiveness of our exports for growth. Competitiveness is based on productivity. If we are to increase productivity, we must focus on the education system. Despite the economic downturn, spending on education, particularly primary education, must be increased. We take too much comfort from surveys that show that Irish teenagers perform well in international comparisons of literacy. We ignore the results of surveys that show a mediocre performance in maths and science. If we are to produce workers for the so-called knowledge economy, we need to increase our spending on education. We need to ensure that all pupils achieve their potential. We need to accelerate the school building programme and to reduce class sizes. We need to end the disgraceful situation whereby every September, pupils who are ready to start primary school do not know if a place will be available for them.

I wish to explain why additional sitting weeks are needed. I will refer to a local issue as an example of the mean-spirited penny-pinching on the part of the Government and its various quangos, which generally attempt to make budgetary savings at the expense of ordinary people, particularly those who are most vulnerable. The HSE has decided to close a day centre at St. Mary's Hospital, Mullingar, for a six-week period from 26 July to 2 September 2008. This decision, which is disgraceful by any standards, is unworthy of any public body. It is no way to treat elderly people, many of whom are from rural areas. In effect, elderly people are being denied one of the few comforts they enjoy as part of an attempt to save coppers. This service, which is operated once a week, involves the collection of elderly people from their homes and their transportation by bus to the day centre. These trips are the highlight of the week for the people in question, many of whom live alone in isolated areas. The service is important not only as a social outlet but also as a means of providing facilities and services. For example, chiropodists, physiotherapists and hairdressers are available at the centre. Each day 40 people from different parts of County Westmeath are brought to the centre for a hot, nourishing meal, to have a chat and to play cards, bingo and so on. This is the only human contact some of these people have all week. The closure of this centre for six weeks will leave them isolated.

The day care centre also provides relief for families of the elderly who can be exhausted from caring for their elderly relatives day in and day out. The attendance of their relatives at the day care centre provides them with some respite. St. Mary's is a centre of excellence with brilliant, dedicated staff, yet this service which is provided daily from 10 a.m. to 4 p.m. could well be closed for six weeks. Is this the thin edge of the wedge?

Many of these people are voiceless and we have a duty to speak up for them. The Labour Party will unashamedly stand firmly on the side of these people. We must give them a voice. There is a great deal of anger in respect of this decision. I have never known people to be so upset and angry. They are extremely animated about this short-sighted and foolish decision. I ask that the Minister for Finance contact the HSE in the mid-Leinster region to request it to reverse the decision to close this centre for any period. It is foolhardy in the extreme and it amounts to a rejection of people living in isolated areas.

This House, by way of legislation, gave authority to the HSE in respect of the health repayments scheme. The manner in which some people are being treated under this scheme is a disgrace. People duly entitled to payments are not getting them. A well educated person, known to the Minister, whose wife applied on behalf of her mother for such a payment on 18 March 2005 received a letter on 18 April 2008 stating the matter is still under review despite her having submitted every document sought, including two affidavits, and answered every query raised. The Minister would be shocked to learn that the wife of the man concerned is being treated in this manner. These people are being continually fobbed off with letters from administrators. I have sought an investigation of the matter by the Minister for Health and Children. We must ensure people are repaid money unjustly taken from them. I will give the Minister the personal details of this matter.

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