Billy Kelleher (Cork North Central, Fianna Fail)

I spoke in the Seanad yesterday about the issue of unemployment, on a motion tabled by the Opposition. I will now take this opportunity to highlight some of the issues to which I referred during that debate.

The global economic environment is very different from what it was in the very recent past. The environment is much more challenging and Members from both sides of the House will accept that much of what is happening now was unforeseen, particularly the global credit crisis. Coupled with that credit crisis is a downturn in the global economy, with some countries slipping into recession. As a small, open economy, trading on the international markets, the environment is particularly challenging for Ireland.

In the context of the Minister's budget speech, it is important that we send out a positive message about Ireland. Our low corporation tax rate, at 12.5%, is a fundamental plank of this Government's policy, and that of many Governments since the 1950s, of ensuring that we attract a lot of foreign direct investment. This tax rate, coupled with our highly educated, skilled and motivated workforce, which is extremely flexible, are important factors in attracting inward investment. It is incumbent on all Members, in whatever context, to highlight the positive aspects of investing in Ireland. Emphasis should be placed on our low corporation tax rate, our infrastructural investments and, primarily, on our human capital, to which I will return later.

Tomorrow we will debate the scheme devised by the Government to safeguard the liquidity of Irish banks. The Minister's decision in this regard was a very brave one. Most Members agree that the legislation drawn up is fundamentally important to ensure the survival of the banking sector in this country. It is important to point out that we are not bailing out the banks. In order to have a functioning economy, with capital and funding available to businesses, we must have a banking system that has liquidity and access to capital.

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