Mary Harney (Dublin Mid West, Progressive Democrats)

I am happy to contribute to this debate on the economy. Rather than squabbling, this House must be united in our purpose of getting the country back on its feet again. This does not mean there is no role for critical analysis or constructive criticism. However, we must distinguish between constructive criticism and destructive cynicism.

In the past 20 years in Ireland we have shown that we have the capacity to win at home and in foreign markets. We have the capacity to take this country literally from its knees to become one of the most successful countries in the world today. This remains our position notwithstanding the economic challenges which confront the economy. Nobody has a greater stake in the country's success and future than our people, regardless of where they work, whether in the public or private sectors, whether they are public servants, politicians or business people, or unfortunately, unemployed, or pensioners. Nobody has greater capacity than our people to make sure that this country returns as soon as possible to economic growth.

The results of the latest world competitiveness survey are outlined on page 23 of the Government's smart economy framework document. Ireland ranks seventh out of 182 countries as a good place to do business, it is fifth out of the same 182 countries as an easy place to establish a business and is the third cheapest location for a business start-up. It is a member of the eurozone, a stable currency that enables us to sell our goods into a market of almost 500 million people with fewer transaction costs. We must export 80% of what we produce by way of goods and services which makes this one of the most open and export-led economies in the world. Ireland's stock of foreign direct investment is five times greater than the OECD average. Only 11% of the population is over 65 years of age, compared with 18% in the United Kingdom and 16% to 19% in most of the mainland European countries. Over 85% of those aged between 20 to 24 years have completed at least second level education, the second highest percentage in the European Union, and 40% of those aged between 25 and 34 have a third level qualification. I could continue to cite extremely favourable statistics for this country.

We do have to ensure that our public finances are in order. The solution to the economic problems we face does not lie solely in our hands but unless we deal with the issues within our domestic capacity we will not be able to return to economic growth when the world's economic conditions change. We can manage our public finances internally in a sustainable way. It is not sustainable to run budget deficits of 11% to 11.5%. The Government therefore has identified the need to reduce spending in 2009 by €2 billion. That will be a challenge because already one month has passed and decisions made within the next week will perhaps take some weeks to effect. For the rest of this year we will be challenged to find that €2 billion but we must find it. That gives urgency to the decision making process.

The Taoiseach and the Government want to bring those involved in social partnership with us in this collective national effort to return to economic growth as quickly as possible. In the mid-1980s when we almost went under and Ireland was described on the cover of The Economist as the "basket case of Europe" — I still have a copy of that edition — the collective effort of many stakeholders, not least public representatives, helped to bring about national recovery. In addition to the policies pursued in the intervening period the industrial peace that came from social partnership which is fundamental to our system of government has had significant benefits in making the country an attractive place, not only for outside investment but also local investment.

We must, however, acknowledge and learn from our mistakes. We let competitiveness slip not only in wage levels but also the cost of energy. These are gravely negative factors making Ireland less competitive for indigenous and foreign investment. There is no doubt that we over-lent and over-invested in property. We must learn too from what we did in the 1980s when we had high debt, high tax and spending and high unemployment. We do not want to see a return to the vicious spiral of high unemployment fuelled by those factors.

Investment is mobile and will go wherever the returns are reasonable. Among the factors influencing foreign investment in this country was that we gave one of the best returns in the world as the US Department of Trade and Commerce showed. We know from events in banks and stock exchanges around the world that high risk attaches to investment. Those who take those risks are entitled to expect a reasonable return. The manner in which we tax transactions, risk taking and enterprise must focus on delivering a good return while remaining competitive.

We have seen recently that the failure to enforce appropriate regulation has a negative impact on the performance of our corporations and the image of, and confidence in, our country. Confidence is essential to winning investment and fundamental to the success of any economy. We have done a great deal in the past decade to change the regulatory environment but law alone will not achieve this. We must change the culture. Maybe because this is a small country we cannot be as dispassionate and tough as we should be. Most people here are terrified of the Revenue Commissioners. I have been very impressed with the manner in which they have enforced the tax law in recent years. People must fear and respect other regulators. If regulation is not enforced without fear or favour those who invest in our society, as shareholders, citizens, pensioners, employees, those honest business people, are damaged. That is why when I was Minister for Enterprise, Trade and Employment, with support from the Government, we established the independent office of the Director of Corporate Enforcement. We removed from ministerial direction the appointment of inspectors to companies. That should not be a political function, no more than the prosecution of criminal offences or the granting of planning permission. The office, headed by a respected public servant, for whom I have high regard, Mr. Paul Appleby, has enforced company law in recent years. People in this House have often criticised him for being over-zealous. Now we see the consequences for all our citizens of not enforcing regulation.

We face a tough challenge. Many are concerned and worried. We must inspire confidence and work together with a unity of purpose to get the country back on its feet. Ideas from wherever they come, whether an individual inside or outside this House or a political party, are important to the Government. We want to hear good ideas and act on them.

I wish to end on a positive note. One of the ways to measure the progress of any country, and particularly its health system, is life expectancy. In the past ten years we have added over three years to life expectancy. This is unique in the developed world. A child born here today has a life expectancy greater than one born in the United Kingdom, Finland or many other countries, and can expect to live as long as a child born in Germany. According to Professor Walsh this is due in equal part to better health interventions particularly for cardiovascular disease and enhanced prosperity. There are many good stories about what has been achieved here. Working together we have the capacity to return to economic growth and to see similar success soon again.

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