Fergus O'Dowd (Louth, Fine Gael)

This is an extremely important debate at a critical time for the national economy and the people. I agree with the point made by my colleague, Deputy Crawford, on the Border counties coming as I do from County Louth. We have had a significant loss of jobs, particularly in the retail sector. Superquinn in Dundalk closed recently and shops are closing every day. We need a more structured and credible approach from the Government on the cost factors which are driving small businesses out of business. One aspect of this could be to re-examine the rateable valuations and a reduction in rates. We should tell local authorities to cut their rates to stimulate business and make it less expensive for people to operate on the main streets of our towns.

We need to examine the cost of telecommunications and energy. At present, the price we pay for electricity is based on a price of $146 per barrel of oil when the real price is closer to $40. There is no reality between what we pay for major contributory cost factors such as energy and the actual price being paid internationally for these products.

My job is to speak about transport. A report was commissioned by the Minister and published this week. It spoke about the problems in Dublin Bus, particularly the lack of services which will occur in Dublin. Dublin Bus will shed more than 270 jobs and it will cut back on its routes and services. In 2000, the Government, through the late Seamus Brennan, published proposals for opening the bus market in Dublin to allow competition and competitive pricing on routes. Nine years later, this has not happened. The people of Dublin are losing out on services to Dublin Bus which is not able to manage its own funds.

This report shows that more than €2 million could be saved annually on one of its 14 key routes. Finglas was examined and it was stated that if services were run differently, more effectively and more cost efficiently they could be increased at a reduced cost. It is a disgraceful situation that Government policy is held to ransom by antiquated and unacceptable operations in the semi-State sector. It is time Dublin Bus was opened to competition. This would mean consumers would have more choice, prices would be lower and taxpayers would pay less for services.

Yesterday, the capital project for roads was cut by more than €280 million. This year, spending on national primary routes will be €280 million less than what was spent last year. The document circulated today, to The Irish Times if not to the Dáil, discusses increasing expenditure on capital projects to historic and international high levels. It does not make sense to cut back on capital projects which are labour intensive, will reduce congestion on our roads and will allow us to plan for the future.

This recession will end. There is doom and gloom everywhere but internationally, from time immemorial, economic cycles continue. While we are at the bottom of this cycle — perhaps it will get worse than we ever thought it could because of mismanagement by the Government — it will come around again. When the recovery does come our infrastructure, particularly transport infrastructure, must be in a position to benefit from it. We should spend on capital projects, cut back on inefficiencies and waste across the public service, and get rid of the 40 quangos as proposed by my colleague Deputy Leo Varadkar. Savings of almost €200 million could be made by switching to generic drugs. Many significant changes can be made which would improve our competitiveness.

There is shock and awe at the mess the Government has made of the economy. In the 18th century we had was is called the "South Sea bubble", and perhaps the Ceann Comhairle has heard of it, where investments were made in a project on the south seas and billions were lost on the Stock Exchange in Britain. The entire economy collapsed. The housing bubble was our South Sea bubble. The Government relied on people selling houses to each other to build a boom that could not last to get money that could not continue to come in to it because it had to end. The disaster we now have was visited upon the State by an inadequate, arrogant and uncaring Government which did not plan or save in the good times for the bad times we are in.

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