Brian Cowen (Laois-Offaly, Fianna Fail)

The best way to maintain and increase jobs now and in the future is by making the economy more competitive. We must bring back growth into the economy. This year there has been a contraction in the economy of 7.5%, which has been a huge challenge to the system. What we have agreed with other members of the eurozone and what we will set out in our budgetary strategy in the coming weeks will be a preparedness to deal with the deficit, to bring more confidence back into the economy by being prepared to take the necessary decisions now. These decisions must be taken to promote confidence domestically and externally in the country's preparedness to take the necessary steps that will bring back growth into the economy. That is the fundamental issue.

With regard to activation measures or what we have been doing to try to help people who find themselves out of work, we have taken a number of major initiatives this year. The number of people on FÁS training programmes has practically doubled this year, from 66,000 to 128,000. The number of people on back-to-work and back-to-education schemes is approximately 25,000. We are seeking to assist in a number of areas in the stabilisation programme, which has helped vulnerable but viable firms in this country which supply export markets. We are facing a further difficulty with exchange rates as the strengthening of the euro against sterling and the dollar is a big problem. We must continue to deal with that.

However, as I said in the House at the beginning of this parliamentary term, the passing of the Lisbon treaty referendum, the enactment of the National Asset Management Agency, NAMA, legislation and bringing forward a budget are fundamental building blocks for building confidence in our capacity to come through this recession. In the meantime, we must provide extra places for those who unfortunately have lost employment and, in so far as we can, assist them in retraining and provide upskilling opportunities for them. That will be an ongoing challenge next year and in the following years. Yes, an unemployment rate of 12.4% is never acceptable. We are heading into 2010 when we hope growth will start to return to the economy. The first full year of growth is estimated, on current assumptions, to be the following year. However, unless we take the necessary budgetary steps in the weeks immediately ahead, we put at risk our ability to effect economic recovery more quickly. The failure to take those steps increases the risk of prolonging the period in which growth will not return to the economy for longer than would be otherwise the case.

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