Deirdre Clune (Cork South Central, Fine Gael)

Prior to last December's budget, the Fine Gael Party set out how we would approach the situation. We acknowledged there would have to be some cuts in public expenditure and we acknowledged there would have to be some form of additional taxation but the targets and focus of our budgetary policy was fairer and more equitable and certainly did not take additional tax revenue from lower-paid workers, those earning less than €30,000 a year. We certainly did not plan cuts in social welfare to the blind and to other vulnerable groups. The key difference was that Fine Gael recognised the need to balance the cuts with the focus on job creation and jobs stimulus. However, this has not happened. We hear much talk of the need to get Ireland back working but where are the practical moves to ensure that this happens? We all know that we are in a recession and that we have a deficit created by this Government and which is seriously out of control. Approximately 25% to 50% of this deficit is related to employment or to unemployment. The rate of unemployment is 13.5%, over 400,000 people. This is the second highest rate in the EU. It is a stark reminder of where we have come from. When this Government came to power, the rate of unemployment was 4% and we had full employment. However, things went rapidly downhill. These figures should be referred to in tandem with the 100,000 or more who have emigrated in the past number of years, the many thousands now on upskilling training courses to ensure they improve their employment prospects. Where are the jobs for the thousands of graduates, postgraduates, leaving certificate students, who have completed their studies last month?

The Government will probably wave its smart economy plans, supplemented by the innovation task force report earlier this year. This report has now been hived off to another review group to look at its recommendations and to analyse whether these can be implemented. This kind of action is typical of the Government; endless reports but very little real action. I refer to one of the key recommendations of the task force report which was to deliver on the investment framework set out in the strategy for science, technology and innovation 2006 to 2013 and achieve the goal in the renewed programme for Government of investing 3% of GDP in research and development. That key recommendation seems already to have slipped, if we are to believe what is reported in today's newspapers that up to 600 research posts deemed to be key to the development of the smart economy, are to be lost this year. These figures have been prepared for the Government by Science Foundation Ireland, the body charged with implementing the strategy. We need to recognise that it is only by encouraging research to focus on the needs of industry and developing innovative ideas and ways of doing business and research that we can produce new products and processes. Research will create employment and in turn, wealth, for this economy.

The message from the Government is that the task force is just a case of another report which can be used as cover if the Government is asked about a plan. I remind the House that it is not just this country asking questions because the EU has asked all member states about their expenditure in this area and how states intend to commit to their target spends. The record will show a reduction in the spend in this area. The wheels have come off the strategy for the science, technology and innovation wagon.

Much needs to be done with regard to the education system which is not delivering the maths and science students needed for research and for financial institutions and to work in the financial services sector. The task force report is littered with recommendations that need to be implemented. We are not doing any favours to the students of today if we do not change our education system, if we do not teach students to be entrepreneurs, as mentioned by Deputy Perry. We need to address the languages deficit in order to encourage call centres to set up here. We are not providing the language graduates to work in those call centres. We need to make changes to the education system. We do not need another debate about whether Irish should be a requirement for the leaving certificate. We need to have a debate about the quality of our education system and the way in which it needs to change in order to match the needs of industry in the future, which is the industry targeted by the Government in its strategy.

I refer to an OECD report on innovation strategy. It states that the global economy is to recover and move towards a sustainable growth path. The traditional sources of growth are declining. The current crisis has only served as a reminder of the need for innovation as a way to provide new solutions. While expenditure cuts are needed and will be needed in the future, governments must continue to invest in future sources of growth such as education, infrastructure and research. This Government has appointed a Minister for Enterprise, Trade and Innovation and a junior Minister with responsibility for innovation. Yet, there is a slipping in the expenditure in this area.

It is essential the Government sends a clear, strong message that it is committed to the future of this economy and committed to future job creation and committed to delivering on the smart economy. Mixed messages are being given out which will further undermine confidence in an already demoralised community. We do not see a clear message from this Government. I would like to touch on other areas but I state my complete support for the motion, which points out a better alternative. The track the Government is following does not spell out confidence to me and the citizens of the country.

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