Brian Cowen (Laois-Offaly, Fianna Fail)

On the question of how we ensure we deal with the problem of rising unemployment, we have to maintain competitiveness in the economy. Every economy currently in recession is losing jobs. The European economy is losing jobs. The US economy is losing jobs. Jobs are being lost in Asia and everywhere else. That is not to be defeatist about it but it is a fact. If we do not understand the context in which we are operating we are not likely to sort it out.

As to what we are doing about it as a Government, we are, despite our severe financial difficulties, maintaining a public investment programme totalling €8.2 billion in direct Exchequer funding which is providing not only jobs but necessary improved economic infrastructure for this country. That will not totally offset the reduction in activity in the private sector but it is an absolute prerequisite for making sure this economy is ready to take advantage of the upturn when it comes in the world economy, as an open economy such as ours can only do. Our domestic consumer market will not be able to take the reduced activity in terms of what is available internationally.

Let us be fair and honest about it, the Government is maintaining its commitment under the national development plan to provide for capital investment of between 5% and 6% of GDP, which is twice the average of any other government in Europe to which Deputy Gilmore might point in terms of what Government is contributing directly from Exchequer resources to building up infrastructure.

Regarding everything else we are doing in terms of retraining — Deputy Gilmore is running down other State agencies here as well — those agencies are providing good services for people who want other employment. We have made changes to the back to education allowance, which has increased by 24% this year.

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