Deirdre Clune (Cork South Central, Fine Gael)

In the next budget, it will be important to protect existing jobs and encourage the development of new jobs. This is a general statement that many people have made, but it is important in view of the actual cost of unemployment to the Exchequer. The ESRI estimates that up to half the gap between Government income and spending will be bridged if we can help people on the live register to get back to work. Every additional person in work will cut €20,000 from our borrowing as a result of the additional taxes and lower social spending that will result. This is why there must be a focus on protecting and promoting jobs. Our lack of competitiveness must be addressed if we are to protect those jobs. We must help employers to continue in business and encourage future investment, both indigenous and foreign. It is equally important to encourage indigenous businesses.

In 2000 we were the fourth most competitive economy in the world. We have slipped now to 19th position. Poor infrastructure, high energy costs, lack of broadband and transport have contributed to our lack of competitiveness. There is a lack of efficiencies in Government and in delivering Government services. In the last budget the Minister offered a list of the quangos he intended to amalgamate and reduce. As a simple example, the National Consumer Agency and the Competition Authority were to be merged into one but we have heard nothing since. That is a simple example of how the Government has not shown leadership, direction or the bottle to deliver on that.

We need to see in the budget a clear sense there is a plan, that we know where we are going, and, very important, that the current generation of unemployed young people will be catered for. In the main it is young people who are caught in the awful scenario of high debt and negative equity. Some of these people are paying dearly for properties and will continue to do so for a long time. Many cannot afford to do so now and some are dependent on the State for mortgage interest relief. These are our vulnerable young people. There are also those in our education system, our colleges and schools. We need to tell them that things will be different, that Government services can and will be efficient and that this nation can and will return to be among the top in the world league in terms of competitiveness.

That is how the Government must direct us. I encourage the Government to look at the benefits that have resulted from investment in research and development and from innovation projects. That is the key to our future. If we wish to be up there competing at that level with other nations we need to continue to support the effective investment that has been in place in research and development.

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