Simon Coveney (Cork South Central, Fine Gael)

As previous speakers have noted, tomorrow will see the publication of new live register figures. I doubt anybody expects good news, given that the number on the register has increased by almost 50% in the past 12 months. The ESRI now predicts unemployment to reach 8% in 2009. That is a conservative estimate compared to the many others who predict that the figure will be closer to 10%. Ireland is entering into a painful and difficult period in which tens of thousands of people will have to cope with losing their jobs.

A combination of reckless Government spending, gross economic mismanagement of public funds and denial for too long of the severity of the situation, combined with an international bank liquidity crisis, plummeting consumer confidence and the collapse of the construction industry, have created in Ireland what many describe as a perfect storm. At times like this, people expect the Government to provide leadership and a steady hand on the tiller as it plots a course through an uncomfortable period. It is, therefore, reason for worry that we are getting neither leadership nor a coherent plan to lead Ireland through its recession. The budget was supposed to be a strong statement of new thinking and hope for people who recognise the depressing nature of the next 12 to 18 months. However, instead of a decisive budget setting out a clear path, we were given little more than a discussion document that changes by the week and lacks any clear plan.

Governments in times of recession should have two priorities. First, they should protect existing jobs while creating new opportunities for those who are made unemployed. Second, they should protect the vulnerable because in difficult times the State is the safety net and the last resort for many. We have spent the past several weeks pointing out the Government's failure to protect the vulnerable in the budget, and this evening we are focusing on job protection and creation. Where is the Government's plan for economic recovery? What is it doing to protect jobs? It appears at present that it is up to the Opposition to devise strategies and plans for job creation and protection.

In regard to small and medium sized enterprises' access to funds and credit, the Government's amendment to the motion congratulates the Government on stabilising the financial services sector so that Irish enterprises have improved access to funds. The reality is that many businesses, particularly small ones, simply do not have any such access. If we leave them to struggle to exist in the current environment, many will not last beyond the next four months because they cannot get overdrafts, never mind modest loans. The Government needs to put in place a strategy for recapitalising our banks to free up more money. It took the right decision on the bank guarantee scheme, and the Opposition supported it, but we cannot sit back on our laurels when the job is not yet finished. Companies are going out of business because they can no longer access basic funds. We have the choice of looking at mergers and acquisitions in the hope of freeing up capital, taking equity stakes in banks or seeking private investment from abroad, which is what Gordon Brown attempted in his visit to the oil rich states. However, we do not seem to be taking any of these options. That is the reason for the level of frustration with the Government's performance in this area.

In terms of the impact of the budget on funding for local authorities, I urge the Minister of State to emphasise to local authority managers the importance of not increasing rates and development charges. The private sector simply cannot shoulder that burden.

Let us hear some strategies for the green economy. We are given generalised statements on the opportunities provided by the green economy but the details are missing.

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