Seymour Crawford (Cavan-Monaghan, Fine Gael)

With the permission of the House, I wish to share time with Deputy Fergus O'Dowd.

I listened with interest to the Tánaiste's speech and I welcome the fact that she recognises issues regarding the cost of energy, labour etc. However, one would almost believe she was talking from the perspective of somebody in Opposition or a person outside Government.

The first job the Government has to do is to convince international observers that a credible plan is in place to get the public finances back in order within a reasonable timeframe. It is clear that the events and failures in recent months have damaged Ireland's reputation internationally. The Government must not only take the blame for that, but now take the lead in rectifying the damage. It is unreal to see how far Ireland has dropped in the view of international commentators, from the days of the Celtic tiger to literally now being seen as a basket economy. A few weeks ago there was general consensus that tough measures would have to be taken. Whatever about union leaders being vocal against it, there was general acceptance among ordinary people that these measures were needed and would be accepted. Unfortunately, Government indecision in this regard does not help.

Representing a Border constituency where little or no international industry has ever been placed our job losses have not received the same publicity as Dell in Limerick. Nevertheless, job losses have the same effect on individuals and families whether it is a single job from a retail shop or a massive exodus from factories which will still open but only employ 10% of their previous workforce. To the Government and the Tánaiste and Minister for Enterprise, Trade and Employment, who has just left the House, I state that we in the Border areas deserve as much recognition if not more than any other area in that we lost out on so much due to the troubles in Northern Ireland.

The Government not only laughed at Fine Gael's logical demand for a 1% decrease in VAT rates to help in some way to improve our competitiveness but it further increased VAT to 21.5%. This happened at a time when the British Government lowered its VAT rate to 15% thus creating a major exodus to Northern Ireland from not only the Border area but even from the deep south.

Issues such as this together with a lack of leadership create fear and a lack of confidence even among the well-known entrepreneurs on which counties such as Monaghan relied through the years. Small businesses are finding it difficult in the marketplace because of the collapse of sterling. Equally, they are having great difficulties because of the failure of the banking system. This is caused because the Government has been slow to finalise the capital structures within the banks and get agreement to release the necessary funding for industry.

In recent years County Monaghan has lost 1,100 jobs in the furniture industry and hundreds in the timber frame sector. Not only did a mill close some years ago but businesses in the retail sector are also closing after hundreds of years. It is still difficult to estimate the recent damage done in the food sector. In blunt terms, increasing charges and indirect taxes together with the increase in the minimum wage has left our industries, including tourism, uncompetitive.

It is difficult to listen to the Tánaiste blaming the retail sector in the Border regions for not competing and bringing down their prices when she and her Government are the main problem. She admitted that we have among the highest cost factors in Europe. No matter how difficult the present proposals are to deal with, it is important to bring them forward and implement them and get on with the job. The indecision and incoherence of the Government is leading us further into depression while at the same time we watch President Obama move forward at speed with certainty and providing hope.

It is interesting to hear the Tánaiste speaking about small businesses. This morning, I was phoned by a small business in Monaghan which must close because of planning regulations. Some people in positions of power believe they are almighty and this is not acceptable to me.

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