Bernard Durkan (Kildare North, Fine Gael)

During the Celtic tiger era, approximately 1,000 jobs a week were created, inflation was low and confidence was high but the reverse is the case now. Approximately 1,000 jobs a week are being lost, confidence is non-existent and while inflation, thankfully, is low, one can never depend on it. A number of commentators suggest it is too low.

Confidence and competitiveness are necessary for job creation and there is also a need to encourage manufacturing industry. Investment in value added products is positive and important, as it generates employment. Everyone would like a high wage economy but a medium wage economy can offer medium and high wages. The two groups, employees and investors, can coexist without difficulty but, in a high wage economy, nobody is happy unless everybody has high wages. Why did nobody recognised that? Provision has been always made in every other economy for investment in manufacturing. Perhaps it is not as lucrative for investors but manufacturing generates jobs and keeps money flowing in the economy, which is the problem we face currently.

Deputies Noonan and O'Dowd referred to the need to generate movement in the economy. Strange things are happening of which I am sure the Minister of State is aware. The lending institutions, which have the power to move the economy forward, are sitting on their hands, particularly in respect of small businesses which can give some employment in manufacturing or services and keep the wheels of the economy turning.

I spoke to a business man in the past few days who has been dealing with the same financial institution for as long as it has been around, but in order to renew his overdraft he had to produce his passport and various other credentials. He requires a substantial overdraft to run his business. He had to go to the ends of the earth to reassure the financial institution that he was genuine. Was that not rich given the recent history of some of the financial institutions? It is difficult for hard-headed business people who have been working all their lives to provide jobs for themselves, their families and others in their communities, to be asked by someone who in their eyes has no credibility to comply with certain requirements before according them a particular status.

The local planning process obstructs job creation and investment in jobs. That has been always the case as my colleagues across the House know. It might be timely to remind the local authorities of the need to encourage investment, to get things moving, even in a small way. Every little helps. I cannot understand why there is not greater emphasis on this because local authorities have a meaningful role through the county development boards and their other ancillary facilities and services.

Deputy O'Dowd referred to the markup in various supermarket chains. The Minister of State may wonder how that relates to industrial development but it all relates to jobs. I met somebody in the past couple of days who found that by importing spare parts directly, instead of purchasing them here, he could save 50% of the cost. I did not believe that but I checked it and found that it happens regularly. Deputies O'Dowd and Noonan compared markups in the commercial area. It appears that we are at a serious disadvantage, allegedly because of currency fluctuations, and higher costs that we cannot identify. We can contend with higher wage and transport costs although we do not welcome them. Where are the hidden costs that cause some imports to be so much more expensive when sold commercially here? The Government might initiate some inquiry into this important area.

The biggest job losses have occurred in the housing bubble that burst. I know the Minister of State will tell me that has nothing to do with the Industrial Development Bill but it could mean 100,000 jobs. The Taoiseach and the Minister for Finance have said repeatedly that we must return to traditional banking and lending practices. Let us for God's sake go back to them and start selling some of the houses at affordable prices. Instead of hankering after the luxury we lived in for the past six to eight years at the peak of the boom, we must try to sell the products we have now which in turn will lead to further job creation in the housing market and the manufacturing and services areas too.

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