Dáil debates

Wednesday, 25 March 2009

Pre-Budget Statements (Resumed)

 

5:00 pm

Photo of Pat BreenPat Breen (Clare, Fine Gael)

We all know how the coffers were emptied and how the Celtic tiger became extinct. Today's edition of The Irish Times carries a survey on economic confidence in 19 countries across the eurozone. Some 39% of adults claim the Government is at fault for the ongoing crisis compared to the banking industry, 19%, the Central Bank, 12%, and corporate creed, 7%. The number of people blaming the Government is significantly more than the global average. Why do the people believe the Government is at fault? The reality is that 78% of the people believe the Government is not doing enough and that its response to this crisis is totally inadequate.

The country's finances are in dire straits and a rapid response is needed. The Minister must come into the House on 7 April and address these issues in real terms. I fear we will probably get more of the same — a rehash of the same old half-baked ideas and the ordinary man and woman on the street beingforced to pay up while the bankers will walk away with huge bonus payments and no accountability. The budget must be fair and equitable and everybody must be willing to pay their fair share.

Unemployment is a big issue. Live register figures at the end of February 2009 showed that 352,800 people were unemployed. We are losing jobs in every sector. In my region of the mid-west, the chairman of the Government-appointed task force, Denis Brosnan, predicts that 50,000 people could lose their jobs there before the end of the year. Yesterday, the media reported that Forfás predicts that 9,500 jobs will be lost in the region as a result of the closure of the Dell manufacturing plant. That is not scaremongering; these are the facts. Last week Dell announced that it will shed another 100 jobs in a research and development facility in Limerick on top of the 1,900 jobs lost. It is very worrying to see research and development jobs lost in the region.

However, there was some good news in the region. The Tánaiste was in Intel in Shannon recently and announced 134 jobs in a research and development facility. I welcome that investment, which is good for the area. I had the privilege of being given a tour of the research and development facility to see first-hand the work being carried out there, which would amaze one as would the expertise and the calibre of graduates there. Unfortunately, many of the graduates are coming from abroad.

There is a bright future for research and development in this country but we must invest in third level institutions and the Government must make the necessary resources available. Students must be encouraged to do mathematics and physics, otherwise companies requiring research and development graduates will be forced to employ graduates from abroad, which is happening at present. Our education system needs to be overhauled to deal with the competition out there.

In regard to the potential job losses in companies associated with Dell, the Government should sit down with the mid-west task force because these companies could still have a role to play in supplying Dell's emerging markets in Poland and other overseas locations. We should look carefully at this in order that most of the 9,500 jobs can be saved. The Government should do that to try to remedy the huge unemployment problem in the mid-west region which affects one in ten people. I believe every household has been affected.

Last October we saw an unwarranted attack on the over-70s by this Government. The savings of €100 million targeted by the Government could have been achieved by a capitalisation grant to GPs and savings on prescribed drugs with a move to the generic area. Many of the older people to whom I have spoken have lost huge retirement investments over the past 12 months.

The decision of the Minister for Social and Family Affairs, Deputy Hanafin, not to proceed with the national strategy for carers has been universally condemned. The Carers Association described it as a slap in the face. There are more than 161,000 family carers in the country, 4,671 of whom care for family members in my constituency of Clare. They contribute over €2.5 billion to the economy each year and their invaluable work is not adequately recognised or acknowledged.

In my constituency, a support structure is provided for family carers under the umbrella of Caring for Carers Clare which does trojan work that often goes unnoticed. The carers' network in west Clare, which is based in Kilkee, is extremely worried about the possibility of cutbacks in the carer's allowance for pensioners. This payment is not a bonus or a handout but is hard earned by people who care for loved ones. Pensioners are already under attack by the Government. There is a very small amount of money involved and I urge the Minister to take these points on board.

My colleague, Deputy Neville, spoke about farmers about whom I also wish to speak. Last week I met a delegation from Clare IFA. In 2008 national farm incomes fell by 15%. There are 3,752 farmers in Clare, with an average beef cow herd of 17.82 cows, who were hard hit last time with the reduction of €713 in the suckler cow welfare scheme. Some 6,121 farmers in Clare have been hit with a reduction of at least €979 in disadvantaged area payments. The outlook for farming for the rest of the year is not good. There is a reduction in milk prices and farmers' incomes have dropped considerably. The Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith must clarify the situation regarding the REPS 4 scheme. There are already farmers who signed up to the farm waste management scheme who will only receive 40% of the payments they are owed before the end of this year.

I ask the Minister to clarify the situation regarding REPS. I tabled a parliamentary question on the issue recently and he told me only €355 million had been put aside for REPS. The Minister must make it clear that the budget will not be affected by the proposed cutbacks. Many farmers are depending on that money.

I met many hoteliers over the weekend and the last few days and they are extremely worried about the tourism industry this year. We understand there is a global aviation recession but the wisdom of introducing the air travel tax at this time must be questioned. This is something I have raised with the Minister for Finance, Deputy Lenihan on several occasions but, unfortunately, it has fallen on deaf ears. Is the Minister for Arts, Sport and Tourism aware of the extent of the problems facing the tourism industry? There are serious concerns out there, of which I think he is unaware.

I understand several group tours from the US have cancelled their trips this year. This tax is counterproductive and at this late stage I appeal to the Ministers for Arts, Sport and Tourism and Finance to think about the damage they are doing to tourism in regional areas, an effect to which hoteliers have testified.

This is a defining moment in history. There is too much at stake here and it is important the Government get it right on this occasion. There are other areas I would like to have touched on but unfortunately we do not have the time.

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