Jimmy Deenihan (Kerry North, Fine Gael)

As I was saying before the House suspended, Ireland must return to its successful export-led model of the 1990s. A number of challenges will have to be met if the economy is to capitalise on the global upturn when it arrives. We must reduce our cost base, particularly in respect of public services. We will have to restore Ireland's reputation as a good place in which to do business. The House is aware that recent events have damaged and tarnished this country's reputation. We need to identify niche sectors in which Ireland can provide the "best of breed", as it is sometimes described. We should draw on our competitive advantages in sectors like renewable energy, which the Minister for Communications, Energy and Natural Resources, Deputy Ryan, has discussed in the Silicon Valley. I visited the Silicon Valley recently to promote the exact same concept. We have opportunities in such areas.

We have to do something about the public pay bill, which will reach approximately 13% of GDP this year, even when the recent pension savings are taken into account. The bill accounted for 11% of GDP, on average, between 2003 and 2007. Fine Gael's proposals for reducing the public pay bill start right here in the Oireachtas. I believe one should start at the top and move down when taking action of this nature. Those of us at the top need to make sacrifices in the first instance if we want people at the bottom to accept similar sacrifices.

We need to prevent any future rapid deterioration in the fiscal balance, of the kind we have recently experienced. I suggest that we should adopt a golden rule to the effect that borrowing is permitted only for the purposes of capital spending. The best way to ensure such a framework stays intact is to siphon off any cyclically adjusted surpluses, such as those enjoyed over the last ten years, into a "rainy day" fund that can be used in more difficult times. If such a fund were available to us now, we might not be in such difficulty.

An obvious candidate for special focus is the renewable energy sector, which I have mentioned. Ireland's climate is ideal for harnessing wind and wave power, as the House is aware. I am sure the Minister has studied Denmark, which is an example of a country from which we should learn. Denmark produces a large percentage of its energy from renewable sources. We should try to attract more European hubs to Ireland. Many companies, including Google, have already decided to base their European operations here. We can attract many more hubs if we target the right companies.

This country will face major challenges on 7 April next. I have been a Member of this House for the same length of time as the Leas-Cheann Comhairle. Those of us in Fine Gael have always made proposals in opposition, which is something Fianna Fáil did not do when we were in government. I ask the Government to examine some of the proposals we are making at this time. They have merit and should be considered when the Government is framing its solutions to the crisis faced by this country.

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