John Perry (Sligo-North Leitrim, Fine Gael)

I thank Deputies Bruton and O'Donnell for tabling this motion on the state of the public finances. This gives us the opportunity to point out that the Government's finance decisions make for foolish economics and make the unemployment situation even worse.

I refer to the specific issue of the Government's proposed cut in the number of undergraduate nursing education places. Speaking in the Dáil on 26 February during an Adjournment debate, I stated that the proposed cut in the number of undergraduate nursing education places was short-sighted. In the course of the reply, the Minister of State, Deputy Haughey, stated that the reduction of 310 places in nursing training will result in savings of €1.65 million in 2009 and €3.3 million in 2010. Using the figures of the Minister of State, the proposed saving per trainee is approximately €5,200 in 2009 and €10,600 in 2010.

In justifying the proposed cutbacks, the Minister of State referred to an OECD report that indicates that Ireland has a large number of practising nurses. Ireland has twice the OECD average and the Minister of State referred to approving a strategic review of nursing degree programmes. The review is designed to provide systematic analysis and if this debate took place last year we could debate the merits of the strategy within the framework outlined. However, we must deal with the reality of this issue in 2009 when the country is in an economic crisis. The Taoiseach stated that we are in "the most severe global economic and financial conditions for a century". That indicates the starkness of the situation. Last week the unemployment statistics showed that the number of people out of work increased by 70,000, to 170,600, in the final quarter of 2008. This week, the CSO indicates that the number of people on the live register stands at 353,000 at the end of February.

This summer there will be 54,000 leaving certificate students who will seek training opportunities at third level and job vacancies. In the good times, approximately one third of these leaving certificate students would have entered the labour force, but that is unlikely on this occasion. In the economic crisis we are facing, we must concentrate on the essentials. Education, to secure a better future, must be one of the priorities in preparation for the recovery phase. As we continue into a period of rapidly rising unemployment, we must maximise investment in job-related education and training. Education must be our priority, as must training for those leaving second level education this year and next year. We cannot have future work prospects diminished by foolish economics and budgetary misallocation.

Cutting the number of nursing training places is a short-sighted and misguided proposal. According to the Minister, the cost of 310 nursing places is €10,600 and the welfare benefit is €10,400. The real gain is insignificant and I ask the Government to reverse the proposed reduction in the number of nursing education places. Given the scale of the job losses sweeping the country we should expand the number of nursing education places, not reduce them.

See this speech in context