Kieran O'Donnell (Limerick East, Fine Gael)

That is the key. They would contribute in terms of taxes and would retain their homes. Such a step would ensure that we dealt with the fundamentals. We cannot restore this economy without keeping people in jobs. We cannot restore the economy without cutting the costs for employers. The only way we can restore our competitiveness internationally is to bring down our costs. The luxury of devaluation is gone. We have the benefits of certainty with the euro. We must address the issue of employment costs. My party proposes doing this through the employment tax code measures and we hope the Government will take this on board. This proposal on restoring competitiveness is one of a series of measures we are putting forward, unlike the Government which has none.

Other areas that must be addressed include energy costs. The four biggest costs for employers at the moment are labour, rent and rates, energy and bank interest charges. All need to be addressed. My party has come up with an employment tax cuts package. It is very straightforward, cutting costs to employers, restoring competitiveness and ensuring that people can stay in jobs. Concerning energy costs, the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, must look at the issue of the energy regulator and how to set prices in terms of energy costs. It should be possible to have ongoing reviews to ensure that the reductions in world markets are passed on to businesses.

Regarding rates, my party is committed, at council level, to a policy of no increases in commercial rates in the coming three years. I have not heard the Government say that. It is a very pro-active measure.

Regarding banking, there is nothing in NAMA to ensure that credit will flow. If credit does not flow, businesses will not be able to function. The measure I proposed for cutting employers' PRSI would give a cash flow advantage to an employer which is needed in big measure. In its last budget, the Government included nothing of a stimulus package for jobs. We put forward a proposal for employers' PRSI exemption for two years and are now building on that with tax cuts for existing jobs. What the Government did was ludicrous. Nowhere in the world would business people increase their charges at a time when business is going badly as the Government did, going from a 21% to 21.5% VAT rate in the last budget. It was illogical. It was done during a bi-monthly VAT period just coming up to Christmas and made no sense.

What is needed is a plan and we in Fine Gael wish to play our part. The Government cannot have a debate on the budget and not put forward a single proposal. The document from the Minister for Finance is a load of waffle. It creates nothing of a pro-active nature and shows no direction. I can see why the Financial Times published a survey today which showed our Minister for Finance having dropped from 18th to 19th place - last. That is how international markets view the way this Government is dealing with the Irish economy. We need a change of direction, a general election and a new Government to ensure that we can introduce these measures to restore our international competitiveness, get our public finances in order and have a banking system that is both sound and provides credit to small business.

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