Joe McHugh (Donegal North East, Fine Gael)

I am glad of this opportunity to say a few words on the economy. I will try to be as constructive as possible because we collectively have a serious responsibility for trying to drive our economy forward. Before we do that, the Government side of the House must start being realistic and honest to see exactly where we are. We need a bottom line, to know exactly where the cutbacks will be and to be honest with the Irish people. For example, on Tuesday we heard there would be no cutbacks in education and health, but on the previous Friday there has been talk in Letterkenny General Hospital, which is local to me and the Tánaiste, of 20 beds being taken off the list. There are cutbacks. Special needs assistants are being cut back in the special needs and disability sector. The cutbacks have been coming down here fast and furious in the past few months.

We need to begin listening to where wastage is still ongoing. In 2007 in the primary school sector we spent €35 million on rental of prefabricated buildings. That is a complete and utter disgrace and waste of money. The wastage is there and we must tackle it. This Government must use every resource to tackle the ongoing wastage. The HSE has paid €1.75 million for late payments to suppliers. That is centrally controlled. In the north west that equated to €500,000. That is not the responsibility of local managers or hospitals but is centrally controlled by the HSE. We must target that kind of wastage where payments can be made on time, avoiding this waste of Exchequer funding.

We still have a role to play in our export market, and this is where the Tánaiste comes in. Last week Germany started taking back production it had outsourced to China and has started producing quality German products instead. These are mass produced products that Germany can produce better at home. We must begin to become competitive and introduce that resilience in producing and manufacturing which we had in this country and start to instil that confidence that we can bring up our exports again.

The export market has not just fallen in the past six months, it has been falling for the past five years. The construction sector has been camouflaging the decline in the manufacturing sector in my neck of the woods and in export growth for the past ten years. Basically, it was a band-aid in terms of providing employment but now we have nothing to drive the economy forward.

I wish to ask the Tánaiste a specific question about counties Kerry and Donegal. There are two Coast Guard stations in situ in those counties, providing an excellent service, although they need upgrading and additional investment. The Tánaiste sits at the Cabinet table with the Minister for Transport, Deputy Dempsey, who is responsible for this area. In light of the economic downturn, will a new Coast Guard station be built in a different area, involving the procurement of land and a considerable financial outlay? Will a new facility be built and will the stations at Valentia and Malin Head be closed down?

The Minister for Agriculture, Fisheries and Food, Deputy Smith, who is sitting beside the Tánaiste, has displayed leadership which should be followed. He is considering the possibility of retraining redundant fishermen to enable them to work in the merchant navy. I welcome measures such as that, which may look small, but which could have a very positive impact. We must find ways of building our capacity, retraining workers and being inventive in moving forward.

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